EPF Now Allows Yearly Withdrawals
Some good news for housebuyers and investors. The Employees Provident Fund (EPF) now allows members to withdraw their Acount II savings yearly to reduce or settle their housing loans. They can also opt to fund the cost of tertiary education (at diploma level and above) for themselves and their children.
In the past, members could only withdraw from their Account II savings once every 3 years to reduce or settle their housing loans.
EPF also said that, “Withdrawals (for housing) can be made annually from the last date of withdrawal, with a minimum amount of RM500.”
The Edge also adds that,
“Some of the conditions for this withdrawal include that the members shall not be the borrower, the spouse is the purchaser and the borrower of the housing loan, the property is mortgaged with the bank and proof of marriage,” it said.
On the latest development, the EPF said it wanted to make withdrawals more flexible and customer-friendly. It had received the approval from the Minister of Finance on the changes to the housing and education withdrawals.
“These changes are part of EPF’s initiative as a responsive organisation to implement more flexibility in our withdrawals,” its senior public relations manager Nik Affendi Jaafar said.
He added: “The EPF is constantly studying the viability of our withdrawals and benefits to meet the changing and diverse needs of our 5.2 million active members.
To read the full report, check it out here.
This is a good move (although long overdue) by the Govt to help reduce the burden of the people. Will help ppl reduce the tenure of their housing loan.
Comment by preacher — April 13, 2006 @ 7:19 pm