A.

Withdrawal to Buy Build House or Shop House

With effect from 1 January 2007, EPF BOARD introduced a new system whereby the contributions standing to the credit of and received in respect of each member shall be apportioned into two(2) accounts as follows:

30% of the amount standing to the credit of the member is kept in Account II which may be withdrawn for housing purposes. It may also be withdrawn, upon the member reaching the age of 50, for retirement plans to be made.

Housing Purpose
For housing purposes, the withdrawals is to enable the member to:
A. buy/build a house or shop house with residential unit
B. reduce/settle balance of housing loan
A member is eligible to apply for withdrawal, if he:

• is buying/building a house or shop house with residential unit;
• has not made any previous withdrawal for housing purposes;
• has entered into a sale and purchase agreement to buy/build a house within two years prior to the date of receipt of the application by EPF Board. For those who have entered into the sale and purchase agreement exceeding the two years period, they are eligible to make withdrawal under the Withdrawal to reduce/settle balance of housing loan scheme;
• has not attained the age of 55 at the time of application.

A member is ineligible to apply if he:

• is buying only vacant land or house excluding land
• is buying the house on hire-purchase
• is carrying out renovations repairs and additional works to existing house

For individual/joint purchases, the members may make withdrawals from the Fund for an amount equivalent to:

• the amount of difference between the cost price and the loan with an addition of 10% of the cost price; OR
• the whole amount standing to the credit of the individual/joint members whichever is the lower.
• For joint purchases, the EPF Board will process the application from the first purchaser and if the amount so withdrawn is insufficient to meet the total eligible amount required, then only the application from the second purchaser will be processed.

B.

Withdrawal to Settle / Reduce Housing Loan

A member may withdraw his EPF credit in Account II in order to reduce/settle any outstanding housing loan. Such withdrawal may be made once yearly until the member attains the age of 50 years.
A member is eligible to withdraw:

• The total amount standing to his credit Account II, or
• total outstanding balance of the housing loan, whichever is the lower
• For joint purchases, the EPF Board will process the application from the first purchaser and if the amount so withdrawn is insufficient to meet the total eligible amount required, then only the application from the second purchaser will be processed.