Account 2 savings allows you to finance the purchase of a house.
If you are making an individual purchase for a house or shop house or any residential unit from a developer, and putting your name as the owner on the sale and purchase agreement (SPA) title, then you are eligible to apply for withdrawals from Employees Provident Fund (EPF), as affirmed by Adrian Un, Chief Executive Officer of SkyBridge International.
Datuk Shahril Ridza Ridzuan, Chief Executive Officer of EPF, officially states that as for the terms of withdrawal, your purchase needs to be financed through a housing loan obtained from financial institutions or licensed insurance companies approved by the Central Bank of Malaysia, or is a cash purchase. The following table is the calculation sample:
According to James Wong, Director of VPC Alliance (KL), Account 2 provides first time home buyers with a convenient way to buy properties.
“Assuming that you started working at age 22 with a starting salary of RM2,500, an average increment is 5% annually, 1 month bonus, your monthly EPF contribution is 11% and employer contributing 13% and annual EPF dividend is 5%. At the age of 35 years old, you would like to withdraw from your Account 2 to purchase a house at price of RM200,000, amount that can be withdraw from Account 2 is RM35,134 (based on current Account 2 withdrawal margin of 30%), you will still need to pay an upfront of RM4,866. However, with the proposed Account 2 margin increased to 40%, the amount that can be withdrawn from Account 2 is RM40,000, which will enable you to purchase the house without any upfront,” says Wong.
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