1. Make sure that the purchase price is affordable to your budget.
2. Decide on your source of funding:
- Will you be obtaining a home loan from a financial institution?
- Will you be withdrawing your savings from your Employees’ Provident Fund (EPF)?
3. If you decide to apply for a home loan, find out whether a Fixed rate home loan or a Flexi home loan would be more suitable for you. Pay a visit to several banks for a comparison. Consider the interest rates and loan terms.
- Prepare the following documents for your banker to submit your loan application:
- Original copy of the S&P Agreement.
- Photocopy of the document of title (can be obtained from the S&P lawyer or housing developer).
- Photocopy of your I/C.
- Photocopy of your last 3 months’ salary slip or 6 months’ bank statement (for self-employed applicants).
- A letter from your Employer confirming your years of service and income.
- Avoid any Late Interest Charges incurred as a result of late release of the loan by:
- Applying for your loan immediately (ask your banker for a checklist of documents required for submission)
- Monitoring the process closely (follow up with your banker).
- Upon loan approval, settle the difference between the Purchase Price and the Loan Amount immediately.
- Promptly pay up all legal fees and charges incurred by the lawyer.
4. If you decide to withdraw your savings from your EPF, here is a brief guideline on the EPF Withdrawal Procedures:
- Requirement: You must be an EPF member.
- Entitlement: You may withdraw everything from your Account 2, or the difference between the Purchase Price and Loan Amount, with an additional 10% for down payment of your property (whichever is lower).
- Get an EPF Withdrawal Application form from the KWSP office.
- Submit the completed form together with a photocopy of your I/C, S&P Agreement and Letter of Offer from your end-financier.
iii. Produce all original documents of your I/C, S&P Agreement and Letter of Offer to the EPF personnel for verification before submitting the form for processing.
- Release of Funds: Payment will be made to your account within a period of 3 to 4 weeks from the date of submission. For subsequent applications made for EPF withdrawals, following release of funds will be made directly to your end-financier.
To confirm your eligibility to withdraw your savings from EPF to purchase a property, we recommend that you log on to www.kwsp.gov.my.