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Loan & EPF Guidelines

Navigate your finance with clarity and confidence

From loan applications to EPF withdrawals, explore essential guidelines on private sector loans and government schemes to make informed financial decisions.

Loan & EPF Guidelines

Private Sector Loan Application

A panel of bankers have been appointed to provide loans to those who qualify, but the final decision lies with you as you are free to choose any bank/finance company of your choice. The documents required to apply a loan are:

  • Original copy of the Sale and Purchase Agreement
  • Copy of the title deed, if available
  • Photocopy of your IC
  • A copy of your last 3 month’s pay or your last 6 month’s bank statement (if self-employed)
  • Letter of confirmation on income and years of service from your employer
  • A copy of Income tax return/EA form for the past 3 years

Sequence of Loan Processing

  1. Submission of loan application form with the necessary documents.
  2. Interview by bank/finance company.
  3. Letter of Offer upon approval from bank/finance company.
  4. The Letter of Offer fully signed by you as acceptance of the offer and returned to the bank/finance company with a copy to the developer.
  5. Bank/finance company’s letter of instruction to their solicitor to prepare the loan document which may be either:
  6. Deed of Assignment and Loan Arrangement (for Strata Units); or
  7. Memorandum of Transfer Form 14A and Charge Form (Landed units with individual titles).
  8. Letter from bank/finance company advising you to execute loan documents at solicitor’s office.
  9. Loan documents forwarded to bank/finance company for execution.
  10. Loan documents returned to solicitors who will forward to developer for execution of Memorandum of Transfer.
  11. Executed loan documents returned to solicitor for stamping and registration.
  12. Stamped loan documents forwarded to bank/finance company for safe keeping.
  13. A copy each is given to purchaser and developer.
  14. Bank/finance company will release payments to developer progressively in accordance to the Third Schedule of the Sale and Purchase Agreement upon receipt of our invoice.

Government Loan Application

As a government loan applicant, you may have been advised by your Departmental Head on the requirements for a housing loan or you may refer to the web site www.mof.gov.my for information. However, we have for your convenience, listed the following documents required for your loan application :

  1. Application form to be completed in detail.
  2. Letter of Confirmation and recommendation from your Departmental Head.
  3. Processing fees (RM1.00 for every RM1,000.00 of loan amount).
  4. Borang VII (Format VII) – Declaration from the borrower giving consent to the Federal Government to deduct from his/her salary the loan installments (inclusive of interest).
  5. Copy of title deed.
  6. Lampiran A – Declaration from the developer consenting to a registrar’s caveat.
  7. Format XIV – To be endorsed by the developer and the borrowers’ solicitors.
  8. Solicitors’ declaration – confirmation of stakeholder and finalisation of loan documents. Borang Akuan SPP 21/86 – Lampiran IV.
  9. Letter to the housing loan unit confirming the ability to settle the difference between loan and purchase price (if it is not a 100% loan).
  10. Copy of Power of Attorney, if the agreement has been attested by the Power of Attorney.
  11. Certificate of Fitness – for completed house.
  12. The progress payments will be released by the Housing Loan Division only when the title (landed unit) and loan agreement cum assignment (strata unit) has been registered at the land office and the High Court respectively.

Note : The above mentioned format might be changed by the government housing loan unit.

Loan Processing

The loan processing is handled by Bahagian Pinjaman Perumahan, Perbendaharaan Malaysia.

You may find and contact them at:

No 9, Kompleks Kementerian Kewangan
Persiaran Perdana, Precinct 2
Pusat Pentadbiran Kerajaan Persekutuan
62592 Putrajaya
Tel : (603) 8880 2000
Email : pinjamrumah@treasury.gov.my

Source: www.mof.gov.my

EPF Withdrawal Procedure

Requirement

You must be a member of EPF.

Entitlement

Your entitlement would be 30% of balance available in Purchaser’s EPF account II or the difference between the purchase price and loan amount (whichever is lower).

Procedure

  1. Submission of EPF withdrawal form together with the original copy of the Sale and Purchase Agreement.
  2. Photocopy of your IC.
  3. A copy of the letter of loan approval from your end-financier.

Note : The above mentioned format might be changed by the government housing loan unit. The loan processing is handled by Bahagian Pinjaman Perumahan, Perbendaharaan Malaysia.

Mode of Payment

The payment will be released directly to the member within a period of three to four weeks from date of submission. For more information, please refer to EPF website at www.kwsp.gov.my.

Source: www.kwsp.gov.my

EPF Guidelines

High property prices have made homeownership challenging for many. To help our members plan for a comfortable retirement, EPF allows you to withdraw from your Akaun Sejahtera savings to help finance up to two residential properties. If you’ve already used EPF savings to buy your first home, you must sell or dispose of that property before applying to withdraw for your second home.

Who Can Apply

Requirements

Malaysians & Non Malaysians

Below 55 years of age

Minimum balance of RM500 in Akaun Sejahtera

Purchasing residential house*

Approved loan from recognised lenders** OR self-financed

Have never made housing withdrawal/ have made housing withdrawal previously but have sold or disposed the property​

Requirements

Malaysians & Non Malaysians

Below 55 years of age

Minimum balance of RM500 in Akaun Sejahtera

Purchasing residential house

Approved loan from recognised lenders** OR self-financed

Never made a housing withdrawal/ have made housing withdrawal before but have sold/ disposed of the property

Requirements

Malaysians & Non Malaysians

Below 55 years of age upon application

Minimum balance of RM500 in Akaun Sejahtera

Bought/built a residential house*

Approved loan from recognised lenders** OR self-financed

Never made a housing withdrawal/ have made housing withdrawal before but have sold/ disposed of the property

*Residential House – bungalow/terrace/semi-detached/apartment/condominium/studio apartment/service apartment /townhouse/Small Office Home Office (SOHO) or a shop lot with a residential unit from a developer in Malaysia.

**Certified financial institutions under the Financial Services Act 2013 or Islamic Financing 2013; Central/State Government or any other government financing institutions; member’s employer; Licensed Corporation/Cooperative bodies (approved by SKM); Insurance Companies licensed by Bank Negara; or other EPF recognised loan providers.

EPF members who purchase residential house type Small Office Home Office (SOHO) are required to apply manually at the EPF counter.

Categories

Individual Withdrawal

Joint withdrawal with your spouse/family member

What You Can Withdraw

Individual Withdrawal
Joint Withdrawal
Housing Loan
Difference between purchase cost and approved loan amount + 10% of the purchase cost OR entire savings in Akaun Sejahtera (whichever is lower)
Difference between purchase cost and approved loan amount + 10% of the purchase cost OR applicant’s entire savings in Akaun Sejahtera (whichever is lower)
Self-Financing
The purchase cost + additional 10% OR entire savings in Akaun Sejahtera (whichever is lower)
The purchase cost + additional 10% OR applicant’s entire Akaun Sejahtera savings (whichever is lower)

What You Need

Documents

  1. Form KWSP 9C (AHL) and Checklist
  2. Copy of identification documents with original for verification (Non-MyKad holders only)
  3. Passbook or copy of your bank account statement (for verification purposes)
  4. Form KWSP 3 (Pindaan) – for mail submissions/failed thumbprint verification
  5. Sales & Purchase Agreement OR Proclaimation Of Sales (POS) by Land Office / Court – not more than 3 years from the date of application

Additional Documents for First or Second House

House loans or financing features may vary for your 1st and 2nd house. So, it’s crucial to get all your documents right to pave your way to smoother applications.

1st House

1. Proof of purchase

  • Sales and Purchase Agreement

or

  • Proclamation of Sale from Administrator/ Court

(Not more than 3 years from date of application)

2. Proof of Financing

  • Housing Loan Approval Letter

or

  • Housing Loan Approval Letter* &
  • Housing Loan Agreement Letter/ Form 16A/ Title Deed under member's name that has been submitted as collateral to the financial institution
  • * If loan has exceeded one year

(Not more than 3 years from date of application)

3. Proof of Relationship

  • Marriage Certificate

or

  • Birth Certificate

Compulsory for joint withdrawal with spouse/ parents/ parents-in-law/ adopted parents/ step parents/ child/ step child/ adopted child/ siblings

1. Proof of Purchase

  • Sales and Purchase Agreement

or

  • Proclamation of Sale from Administrator/ Court

(Not more than 3 years from date of application)

2. Proof of Transaction

  • A confirmation letter from a lawyer’s office who manages the sales and purchase transaction. The letter must contain details of the property and that the purchase was made by cash.

3. Proof of Payment

  • Receipt of payment of no less than 20% of the property price.

(Receipt of payment from Bank Auction or Bank Auction's Lawyer)

4. Proof of Title Transfer

Title Deed in member’s name
OR
Form KTN 16F (Proclamation of Sale from Court)
OR
Form KTN 16I (Proclamation of Sale from Administrator)
OR
Form KTN 14A transfer of ownership form that has been completed by the Land Office
OR
Deed Of Assignment
AND
Letter of confirmation from buyer/ seller’s lawyer stating that the Notice of Assignment has been submitted to the developer according to the Section 22D (2) Housing Developer Act (Control And Licensing) Amendment 2007

(Receipt of payment from Bank Auction or Bank Auction's Lawyer)

5. Proof of Relationship

  • Marriage Certificate

or

  • Birth Certificate

Compulsory for joint withdrawal with spouse/ parents/ parents-in-law/ adopted parents/ step parents/ child/ step child/ adopted child/ siblings

2nd House

1. Proof of purchase

  • Sales and Purchase Agreement

or

  • Proclamation of Sale from Administrator/ Court

(Not more than 3 years from date of application)

2. Proof of Financing

  • Housing Loan Approval Letter

or

  • Housing Loan Approval Letter* &
  • Housing Loan Agreement Letter/ Form 16A/ Title Deed under member's name that has been submitted as collateral to the financial institution
  • * If loan has exceeded one year

(Not more than 3 years from date of application)

3. Proof of Relationship

  • Marriage Certificate

or

  • Birth Certificate

Compulsory for joint withdrawal with spouse/ parents/ parents-in-law/ adopted parents/ step parents/ child/ step child/ adopted child/ siblings

4. Proof of Sale/ Disposal of first house

Verified by any one of these documents.

  1. Ownership of Transfer Form KTN 14A in the name of the new owner completed by the Land Office or at least a completed and signed Ownership of Transfer Form KTN 14A with the submission receipt by the Land Office OR
    Note: Any proof of relationship must be submitted with transfer of house ownership based on love and affection (subject to immediate family members only: spouse, parents, parents-in-law, step parents, foster parents, child, stepchild, adopted child or siblings)
  2. Deed of Assignment AND Letter of Confirmation from buyer/ seller’s lawyer stating that the Notice of Assignment has been submitted to the developer in accordance with the Section 22D (2) Housing Developer Act (Control and Licensing) Amendment 2007 (only for buy or sell process after 12 April 2007) OR
  3. Deed of Assignment between you and the new owner which has been completed and with stamp duty (or produce the stamp receipt) of 1% of the sale price; OR
  4. Title Deed in the new owner’s name AND Sale and Purchase Agreement between you and the new owner OR
  5. Real Property Gain Tax Form 5/ 5A AND Sale and Purchase Agreement between you and the new owner) OR
  6. Proclamation of Sale from Administrator (Form KTN 16I)/ Proclamation of Sale from Court (Form KTN 16F) OR
  7. Confirmation by auction bank on property auction OR
  8. Transfer of ownership by Court Order to any party AND divorce documents (for divorce cases) OR
  9. A formal search from the Land Office indicating the name of the new owner of the said property AND Sale and Purchase agreement between you and the new owner; OR
  10. Confirmation letter from the authorities (Housing and Local Government Ministry/ Municipal Councils/ District Offices/ Penghulu) for houses damaged by natural disasters; OR
  11. Confirmation letter from the Housing and Local Government Ministry/ State Government for abandoned housing projects/ troubled housing projects/ ailing housing projects OR
  12. Deed of Revocation or Deed of Rescission for the first house OR Confirmation of Cancellation Letter from the developer/ lawyer OR
  13. Assessment Bills issued by the Municipal Council/ local authorities in the name of the new owner and Sale and Purchase agreement between you and the new owner; OR
  14. Confirmation letter for houses damaged by fire and as a result of losing a home issued by approved authorities, such as the Fire and Rescue Department/ Royal Malaysia Police/ Local authorities/ Municipal Council/ Head of Village and other approving authorities; AND additional documents such as scene photos or other documents to support the application (if necessary).

(Receipt of payment from Bank Auction or Bank Auction's Lawyer)

1. Proof of Purchase

  • Sales and Purchase Agreement

or

  • Proclamation of Sale from Administrator/ Court

(Not more than 3 years from date of application)

2. Proof of Transaction

  • A confirmation letter from a lawyer’s office who manages the sales and purchase transaction. The letter must contain details of the property and that the purchase was made by cash.

3. Proof of Payment

  • Receipt of payment of no less than 20% of the property price.

(Receipt of payment from Bank Auction or Bank Auction's Lawyer)

4. Proof of Title Transfer

Title Deed in member’s name
OR
Form KTN 16F (Proclamation of Sale from Court)
OR
Form KTN 16I (Proclamation of Sale from Administrator)
OR
Form KTN 14A transfer of ownership form that has been completed by the Land Office
OR
Deed Of Assignment
AND
Letter of confirmation from buyer/ seller’s lawyer stating that the Notice of Assignment has been submitted to the developer according to the Section 22D (2) Housing Developer Act (Control And Licensing) Amendment 2007

(Receipt of payment from Bank Auction or Bank Auction's Lawyer)

5. Proof of Relationship

  • Marriage Certificate

or

  • Birth Certificate

Compulsory for joint withdrawal with spouse/ parents/ parents-in-law/ adopted parents/ step parents/ child/ step child/ adopted child/ siblings

4. Proof of Sale/ Disposal of first house

Verified by any one of these documents.

  1. Ownership of Transfer Form KTN 14A in the name of the new owner completed by the Land Office or at least a completed and signed Ownership of Transfer Form KTN 14A with the submission receipt by the Land Office OR
    Note: Any proof of relationship must be submitted with transfer of house ownership based on love and affection (subject to immediate family members only: spouse, parents, parents-in-law, step parents, foster parents, child, stepchild, adopted child or siblings)
  2. Deed of Assignment AND Letter of Confirmation from buyer/ seller’s lawyer stating that the Notice of Assignment has been submitted to the developer in accordance with the Section 22D (2) Housing Developer Act (Control and Licensing) Amendment 2007 (only for buy or sell process after 12 April 2007) OR
  3. Deed of Assignment between you and the new owner which has been completed and with stamp duty (or produce the stamp receipt) of 1% of the sale price; OR
  4. Title Deed in the new owner’s name AND Sale and Purchase Agreement between you and the new owner OR
  5. Real Property Gain Tax Form 5/ 5A AND Sale and Purchase Agreement between you and the new owner) OR
  6. Proclamation of Sale from Administrator (Form KTN 16I)/ Proclamation of Sale from Court (Form KTN 16F) OR
  7. Confirmation by auction bank on property auction OR
  8. Transfer of ownership by Court Order to any party AND divorce documents (for divorce cases) OR
  9. A formal search from the Land Office indicating the name of the new owner of the said property AND Sale and Purchase agreement between you and the new owner; OR
  10. Confirmation letter from the authorities (Housing and Local Government Ministry/ Municipal Councils/ District Offices/ Penghulu) for houses damaged by natural disasters; OR
  11. Confirmation letter from the Housing and Local Government Ministry/ State Government for abandoned housing projects/ troubled housing projects/ ailing housing projects OR
  12. Deed of Revocation or Deed of Rescission for the first house OR Confirmation of Cancellation Letter from the developer/ lawyer OR
  13. Assessment Bills issued by the Municipal Council/ local authorities in the name of the new owner and Sale and Purchase agreement between you and the new owner; OR
  14. Confirmation letter for houses damaged by fire and as a result of losing a home issued by approved authorities, such as the Fire and Rescue Department/ Royal Malaysia Police/ Local authorities/ Municipal Council/ Head of Village and other approving authorities; AND additional documents such as scene photos or other documents to support the application (if necessary).

(Receipt of payment from Bank Auction or Bank Auction's Lawyer)

References

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