REDUCE/REDEEM HOUSING LOAN BALANCE WITHDRAWAL …

1 Tarikh Cetakan : V01/05/2017 REDUCE/REDEEM HOUSING loan BALANCE WITHDRAWAL PURPOSE 1. Individual Purchase WITHDRAWAL of savings from Account 2 to reduce / redeem HOUSING loan BALANCE from financial institutions approved by the EPF; OR 2. Joint Purchase With immediate family members (husband / wife, parents, parents-in-law, step-parents, foster parents, children, step-children, foster children or siblings / other individuals OR to assist husband / wife) APPLICANT S ELIGIBILITY 1. Member is a Malaysian citizen OR non-Malaysian 2. Has not reached age 55 at the time the application is received by the EPF 3. Has at least RM500 in Account 2 TERMS OF WITHDRAWAL 1. Member buys or builds a residential house ( bungalow / terrace / semi-detached / apartment / condominium / studio apartment / service apartment / townhouse / SOHO) or a shop lot with residential unit; 2.

2 Member has obtained a HOUSING loan for the purpose of buying / building a house from any of the following approved institutions: a. HOUSING loan approved by: Financial Institutions licensed under the Financial Services Act 2013 or Islamic Financial Services Act 2013 Federal / State government or any other government financial agencies Member s employer Licensed Cooperatives / Cooperative Companies (approved by the Malaysian Cooperative Commission) Licensed insurance companies approved by Bank Negara Malaysia Any loan providers approved by the EPF; OR b. Self-financing 3. Member has an outstanding HOUSING loan with an approved financial institution for the purpose of buying or building a house; 4. The property purchased or built must be charged as collateral for the HOUSING loan ; Tarikh Cetakan : V01/05/2017 5. Member has been registered as owner of the property; 6.

3 Application can be made every ONCE A YEAR from the previous date of WITHDRAWAL to reduce / redeem HOUSING loan BALANCE ; 7. For refinancing of property: The outstanding loan amount accounted for is based on the original HOUSING loan BALANCE with the first loan provider or based on the latest loan BALANCE , whichever is lower; If the loan involves several financial providers, the redemption letter will be compared against the latest outstanding BALANCE to determine the amount members qualified to withdraw; Member is not eligible for this WITHDRAWAL if the original loan amount has been fully settled. 8. This WITHDRAWAL is subject to the following conditions: If member has not made any WITHDRAWAL to purchase or build a house, member may make WITHDRAWAL for any houses; OR If member has made prior WITHDRAWAL to purchase or build a house, member may only make WITHDRAWAL for the same house through individual / joint WITHDRAWAL or to assist member s spouse in purchasing a different house 9.

4 Member is not NOT ELIGIBLE to apply if: The purpose of the loan is to renovate, repair or to carry out additional works to the existing house or for personal purposes loan in the form of overdraft loan taken from an individual The purpose of the loan is to reduce / redeem the loan BALANCE of third house The purpose of the loan is to reduce / redeem the loan BALANCE of a house bought overseas The original HOUSING loan BALANCE has been fully settled 10. Additional Conditions for WITHDRAWAL to Assist Member s Spouse Member s spouse has purchased or built the house through loan Member may or may not be the borrower for the said HOUSING loan The property has been charged as collateral for the HOUSING loan The house is fully owned by the spouse or jointly-owned by both member and spouse Member is required to produce proof of relationship, such as a Marriage Certificate or children s Birth Certificate Member may withdraw to reduce / redeem the HOUSING loan BALANCE of any house either for oneself or spouse (husband / wife / wives), subject to WITHDRAWAL every once a year AMOUNT ALLOWED FOR WITHDRAWAL (Whichever is lower and not less than )

5 WITHDRAWAL for Individual Purchase / Spouse Assistance Joint WITHDRAWAL with Spouse or Next of Kin or Other individuals Total amount of HOUSING loan BALANCE OR all savings in Account 2 Total amount of HOUSING loan BALANCE OR all savings in Account 2 of each applicant, subject to the HOUSING loan BALANCE Tarikh Cetakan : V01/05/2017 MODES OF PAYMENT 1. Direct Crediting Into HOUSING loan Account All WITHDRAWAL payments will be credited directly into members / spouse s HOUSING loan account, subject to the following: Member / spouse has a HOUSING loan account with a panel bank appointed by the EPF; AND Member s / spouse s loan with the EPF panel bank is not in the non-performing loan (NPL) status; AND Member s / spouse s loan account is still active; AND Member s / spouse s identification number as a borrower matches with the bank s record; AND Payment is made in Ringgit Malaysia (RM) A banker s cheque will be mailed to the member if the payment failed to be credited into member s bank account due to cases such as an invalid identification record.

6 2. Banker s Cheque to loan Provider All WITHDRAWAL payments will be made via a banker s cheque in the name of the financial provider based on the following circumstances: Member s / spouse s loan provider does not provide direct crediting service into the HOUSING loan account; OR Member s / spouse s loan made with the EPF panel bank is a non-performing loan (NPL) The banker s cheque will be sent directly to the financial provider s address as stated in the HOUSING loan BALANCE Statement through a registered mail together with the payment notice, including a notification on payment details. REQUIRED DOCUMENTS 1. HOUSING loan BALANCE Statements dated no longer than three (3) months from the date the application is received by the EPF 2. A duplicate copy of identification document (for non-MyKad holder) 3. EPF Form 3 (Revised) - If thumbprint verification failed / for submission by mail SUPPORTING DOCUMENTS 1.

7 Please refer to the Document Checklist for WITHDRAWAL to Reduce / redeem HOUSING loan BALANCE at the EPF website or refer to any EPF branches for the necessary documents. 2. The EPF reserves the right to request additional documents or reject incomplete applications that do not comply with the terms and conditions. NOTICE TO APPLICANTS Failure to Return Unused Amount for WITHDRAWAL Purpose If the applicant does not use the withdrawn savings for the intended purpose, the applicant is deemed as having committed an offence and shall, upon conviction, be liable to imprisonment for a term not exceeding six (6) months or fine not exceeding RM2, or both [Section 58A, EPF Act 1991 (Amendment) 2007]. Incorrect or False Declaration or Furnishing False Documents If the applicant provides the EPF with false statement or forged documents, the applicant is deemed as having committed an offence and shall, upon conviction, be liable to imprisonment for a term not exceeding three (3) years or fine not exceeding RM10, or both [Section 59, EPF Act 1991 (Amendment) 2007].

8 Tarikh Cetakan : V01/05/2017 Purchase Not For Residential Purposes HOUSING Withdrawals are subject to the current terms and procedures. The EPF reserves the right to reject a WITHDRAWAL application if transfer of ownership is made less than one (1) year or if the purchase contains any element of investment and not for residential purposes as provided for under EPF Act 1991. ENQUIRIES For further enquiries or additional information regarding this WITHDRAWAL , please contact: Any nearest EPF Office; EPF Contact Management Centre (CMC) at: 03-89226000 Customer Feedback: Please quote your EPF number or Identification Card number and the type of WITHDRAWAL applied for when contacting the EPF.