1) Withdrawal to Reduce / Redeem Housing Loan
- This withdrawal allows you to withdraw your Account 2 savings to reduce or redeem the housing loan balance with the financial institution approved by EPF as follows:
i. Individual purchase; OR
ii. Joint purchase with immediate family members (spouse, parents, parents-in-law, step parents, foster parents, child, stepchild, adopted child or siblings) or other individual with no relationship OR
iii. To assist your spouse reduce / redeem the housing loan balance.
- Withdrawal to reduce / redeem the housing loan balance for a second house is allowed when the first house is sold or disposal of ownership has taken place. Disposal of ownership means loss of ownership of the first house owned through previous EPF withdrawal due to auction, surrender of property by court order, transfer of ownership because of love and affection, destruction of house due to natural disaster, abandoned housing project or cancellation of purchase.
2) Withdrawal to Purchase / Build a House
3) Housing Loan Monthly Installment Withdrawal
- This withdrawal allows you to withdraw your Account 2 savings to pay for your housing loan monthly instalments taken for the purpose of buying / building a house.
- This withdrawal is an addition to the existing withdrawal, which is the Withdrawal to Reduce / Redeem Housing Loan.
4) Flexible Housing Withdrawal
- The Flexible Housing Withdrawal is a process to ring fence or set aside a part of savings in member’s
Account 2 to the Flexible Housing Withdrawal Account to enable the member obtain a higher housing loan amount to purchase/build a house.
- The concept or the facility of the Flexible Housing Withdrawal is to utilise the current and future EPF’s
savings/contribution value in consideration of providing loan by the Financial Institution.
- Based on this concept, the monthly contribution to the EPF is considered as an income. Therefore, the
member can obtain a higher loan amount since the credit assessment on the net income also takes the EPF contribution into consideration (employee and employer’s share). As a result, the member can purchase/build a house with a higher price since this would enable them to obtain a higher loan to finance the purchase/building a house.