EPF – Housing Loan Reduction Withdrawal

April 19, 2005 | 3 Comments   

Ever wonder how to reduce your housing loan using EPF. First of all you have to submit a whole lot of documents. I finally succeed in doing so. Let me share my experience so that you will not fall in the same trap.

For those of you, who have Internet access, go to this website to get the document checklist (http://www.kwsp.gov.my/index.php?ch=139&pg=148&ac=1186). By the way there is 2 category of checklist, make sure you are in the correct category. I won’t want to see you traveling to EPF office back and forth with frustration. The 2 category are House Purchasing and To Reduce Housing Loan. For Housing Loan Reduction, you can do it every 3 years until the loan is all paid for.

Here are the documents required housing loan reductions:

1. Complete KWSP 9C (AHL) form, you need to get this from KWSP.
2. 2 copies of your IC/myKad. Both side on the same page, don’t do any stunt.
3. Surat Pengesahan Baki Pinjaman from the bank.
4. Sales & Purchase Agreement.
5. Loan Approval Letter from bank.
6. Suratan Hakmilik (11A/B) from bank/law firm
Borang Gadiaan (16A) with Annexure from bank/law firm


Loan Agreement cum Assignment (if the Garan/Hakmilik is not issued yet)

7. Undertaking Letter from previous bank if you did a refinance.

All the above documents must be certified by the bank or law firm. When you submit all the required documents, it takes 21 working days for EPF to send you the cheque. For the first withdrawal, the cheque will be in your name. You can use the money for renovation. Second withdrawal will be issued to the bank.

I have to compliment EPF for explaining to me what documents are needed. Best of all is that EPF office is just nearby and no queue.

Some rooms for improvement for EPF:

  • Educate the banks what are the required documents.
  • Reduce the amount of documents required for consecutive withdrawals. Imagine how many sets of documents EPF will accumulate every 3 years.
  • EPF forms made available at the website.
  • Online status of the withdrawal.
  • The frustration I had was not with EPF but with the law firm. Geram only!! During refinancing, a law firm that was assigned to me by the bank. Proper documents should have been sent to me after the papers were signed. I have to chase them everyday to send me all the documents.

    At the final stage, one document was still missing. When the bank issue the “Surat Pengesahan Baki Pinjaman”, advisable not to wait too long as the letter has a date to it. If the date expired, EPF may ask you to re-submit it again. A tip from EPF office is to ask the bank to give print a few dates for the baki pinjaman in case of delay in getting the documentation. By the way, my bank needs 2 weeks to get this letter done.

    I had to call the law firm to send me the last piece of documents since there is urgency. The law firm officer gave heaps of excuses, files it the store room, officer in charge on MC, cannot find the documents. I had it with them and arrange for the bank to deal with them. I never get a straight answer whenever I deal with the law firm. At least give me a date when it can be done rather than excuses. It is so frustrating. In the end, I managed to get the copy of the documents and made my submission. Now I am waiting for the cheque to be posted to me.

    By the way, you can ask the bank for all the EPF required documents and pay administrative fees. My bank charge RM50 and it takes more than 1 month. It may save you a whole lot of trouble.

    Anyway, I am no expert but like to share my experience so that you can get information here.