EPF WITHDRAWALS FOR HOUSING USE

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Transcription:

Guidelines

EPF WITHDRAWALS FOR HOUSING USE For further information, please refer to http://www.kwsp.gov.my

a) EPF WITHDRAWALS FOR PURCHASING A HOUSE / BUILD A HOUSE Description This withdrawal is used to partially finance the purchase of a house (eligible for the first and second house). However, withdrawal for purchasing the second house is only allowed after the first house is sold or disposal of ownership of property has taken place (proof of sale of the first house must be produced). After making this withdrawal, you are eligible to withdraw your savings to reduce / redeem the housing loan for the same house once a year. You must also have minimum RM500 savings in your Account II. You are not eligible to withdraw for the purpose of:- Buy a land or a house lot only Renovate, repair or do additional work to the existing house Ownership of property is not via sale and purchase transaction Have taken an overdraft loan Buy a third house Buy a house abroad Amount Eligible to Withdraw You can withdraw your savings (account II) based on the following, whichever is lower but not less than RM500: Withdrawing via Individual Purchase The difference between the price of the house and the housing loan with an additional 10% of the price of the house; OR All balance available in Account II Withdrawing via Joint Purchase with Spouse, Family Members or Other Individuals The difference between the price of the house and the housing loan with an additional 10% of the price of the house; OR All balance available in Account II of all applicants subject to the maximum eligible amount as stated above. If you obtained a full housing loan (100%), you are eligible to withdraw as much as 10% of the price of the house OR All balance available in Account II You are allowed to apply only if you have signed the Sale and Purchase Agreement in not more than 3 years from the application date.

b) EPF WITHDRAWALS TO REDUCE / REDEEM HOUSING LOAN Description This withdrawal is used to reduce or redeem the housing balance with the financial institution approved by the EPF for the purchase or construction of a house. Withdrawal application can be made once a year from the date of last housing withdrawal. You must also have minimum RM500 savings in your Account II. You are not eligible to withdraw for the purpose of:- Renovate, repair or carry additional work to the existing house or for personal purposes Have taken an overdraft loan Have take a loan from an individual Wish to reduce / redeem the loan balance of your third house Wish to reduce / redeem the loan balance for a house you bought overseas The original housing loan balance is fully settled Amount Eligible to Withdraw You can withdraw your savings (account II) based on the following, whichever is lower but not less than RM500: Withdrawing via Individual / Assisting Spouse Total balance of housing loan; OR All savings in Account II Withdrawing via Joint Withdrawal with Spouse / Family Members / other Individuals Total balance of housing loan; OR All savings in Account II of all applicants subject to the total balance of housing loan. You can choose to determine the amount you wish to withdraw from your savings in Account II, subject to the maximum amount you are entitled to withdrawal by completing "Surat Akujanji Pilihan Amaun Pengeluaran".

c) HOUSING LOAN MONTHLY INSTALMENT WITHDRAWAL Description Withdrawal is used to pay housing loan monthly instalments taken for the purpose of buying or building a house. This withdrawal is an additional to the existing withdrawal, which is withdrawal to reduce / redeem housing loan. The maximum age allowed is 55 years and must also have minimum RM600 savings in your Account II. You can withdraw your savings (account II) based on the following: Amount Eligible to Withdraw Withdrawing via Individual / Assisting Spouse Total balance of housing loan; OR All savings in Account II. (Whichever is lower but subject to the minimum monthly payment of RM100.00 for the minimum period of 6 months and the maximum monthly payment does not exceed the total of monthly loan instalments) Withdrawing via Joint Withdrawal with Spouse / Family Members / other Individuals Total balance of housing loan; OR All savings in Account II of all applicants subject to the housing loan balance (Whichever is lower but subject to the minimum monthly payment of RM100.00 for the minimum period of 6 months and the maximum monthly payment of the borrowers does not exceed the total of monthly loan instalments) The amount withdrawn from Account II will be set aside in a special account and the monthly payments will be made out from this account. The amount set aside in the special account will be paid dividend and will be credited into Account II when dividend is declared in the following year.

d) FLEXIBLE HOUSING WITHDRAWAL Objective The Flexible Housing Withdrawal is a process to ring fence or set aside a part of savings in member s Account II to the Flexible Housing Withdrawal Account to enable the member to obtain a higher housing loan amount to purchase or build a house. This concept is to utilise the current and future EPF s saving or 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 take the EPF contribution into consideration (employee and employer s share). As a result, the member can purchase or build a house with a higher price since this would enable them to obtain a higher loan to finance the purchase or building a house. You are not eligible to withdraw for the purpose of:- Buying a land or house lot only Renovate, repair / additional works to the existing house Purchasing/ building a house overseas Has a loan in the form of overdraft or the purpose of refinancing Ring Fencing and Transfer Amount Application amount must not be more than the Housing Loan Amount. Application to transfer existing savings in account II can be made as follows: Transfer of existing savings from Account II and monthly transfer (according to the fixed amount applied by the member) Monthly transfer (according to the fixed amount applied by the member) only. The monthly fixed transfer amount cannot be changed and will remain according to the amount selected during application.

THE ACQUISITION OF PROPERTIES BY FOREIGN INTERESTS This Guideline is to clarify the procedure on the acquisition of properties. Foreign interest means any interest, associated group of interests or parties acting in concert which comprises: Non Malaysian citizen; or Permanent Resident (Non Malaysian citizen and has been granted Permanent Resident status by the Malaysia Government); or Foreign companies or institution; or Companies incorporated in Malaysia with more than 50% owned by the above three definitions The guideline is divided into the following categories: - 1. ACQUISITION OF PROPERTY 2. EXEMPTIONS / RESTRICTION For further information, please refer to http://www.epu.jpm.my/

a) ACQUISITION OF PROPERTY (effective from 1 March 2014) Acquisition Of Property By Foreign Interest All property acquisition by foreign interest that do not require the approval of the Economic Planning Unit, Prime Minister s Department but falls under the purview of the relevant Ministries and /or Government Departments as follows:- 1. Acquisition of Commercial Unit valued at RM1,000,000 and above; 2. Acquisition of agricultural land valued at RM1,000,000 and above or at least five (5) acres in area for the following purposes: agricultural activities on a commercial scale using modern or high technology; agro-tourism projects; agricultural or agro-based industrial activities for the production of goods for export. 3. Acquisition of residential unit valued at RM1,000,000 and above; 4. Acquisition of industrial land valued at RM1,000,000 and above; and 5. Transfer of property to a foreigner based on family ties is only allowed among immediate family members. b) EXEMPTIONS / RESTRICTION a) Exemption From Obtaining The Approval Of The FIC Acquisition of residential unit under Malaysia My Second Home Programme; Multimedia Super Corridor (MSC) status companies are allowed to acquire any property in the MSC area without obtaining the approval of FIC provided that the property is only used for their operational activities including as residence for their employees; Acquisitions of properties in the approved area in any regional development corridor by companies that have been granted the status by the local authority as determined by Government; Acquisition of properties by a company that has obtained the endorsement from the Secretariat of the Malaysia International Islamic Financial Centre (MIFC); Acquisition of residential units to be occupied as a hostel for company s employees. However, local companies owned by foreign interest are only allowed to acquire residential units valued at RM100,000 and above and this matter is under the jurisdiction of the relevant state authorities; Transfer of property pursuant to a will and court order; Acquisition of industrial property by manufacturing company licensed by the Ministry of International Trade and Industry for own manufacturing; Acquisition of properties by Ministries and Government Departments (Federal and State), Ministry of Finance Incorporated, Menteri Besar Incorporated or Chief Minister Incorporated, State Secretary Incorporated and listed Government Linked Companies; Acquisition of properties under the privatization projects, whether at the Federal or State level, provided that it involves the companies that are the original signatories in the contracts for the privatized projects; and Acquisition of properties by companies that have been granted the status of International Procurement Centres, Operational Headquarters, Representative Offices, Regional Offices, Labuan offshore companies and Bio-Nexus or other special status by the Ministry of Finance, Ministry of International trade and Industry and other ministries. b) Restrictions Foreign interest is not allowed to acquire: - Properties valued less than RM1,000,000/- per unit; All properties under the category of low and medium low cost as determined by the State Authority; All properties built on Malay reserve land; and Properties allocated to Bumiputera interest in any property development project as determined by the State Authority

MY FIRST HOME SCHEME The scheme was announced in 2011 Malaysia Budget in order to assist young adults to own their first home with up to 100% financing from Financial Institutions Who is THE BORROWER? Malaysian citizen First time home-buyer Individuals up to age 35 years Single borrowers with gross income RM3,000 per month Confirmed employee with minimum employment of 6 months with same employer. Repayment of total commitment amount must not be more than 55% of the gross monthly income. What are the criteria of PROPERTY? Residential properties located in Malaysia only Property value between RM100,000 and RM220,000 Owner occupied only (Buyers are required to reside in the property) How to APPLY? Eligible buyer will need to apply directly with participating banks. What are the FINANCING REQUIREMENTS? Financing tenure not exceeding 40 years, subject to borrower s age not exceeding 65 years at the end of financing tenure Amortizing facilities only (no redrawable features) Installments payable via monthly salary deductions or standing instruction Savings record (3 months installment liquidity reserve) Compulsory fire insurance/takaful Below are the PARTICIPATING BANKS: For more info please refer to: http://www.srp.com.my/index.html

MALAYSIA MY SECOND HOME (MM2H) For further information, please refer to http://www.mm2h.gov.my/

The Ad Valorem Duties (that is, according to the value) is levied on: i. Instruments of transfer of property including marketable securities, shares of other companies and of non tangible property, for example, book debts, benefits to legal rights and goodwill; ii. Instruments creating interests in property, for example tenancies and leases; iii. Instrument of security for monies including instruments creating contracts for payment of monies or obligation for payment of monies (generally described as "Bond"); iv. Certain capital market instrument, for example, Contract Notes and The Imposition of Fixed Duties on v. A number of other legal, commercial, mercantile or capital market instruments, for example, Power of Attorney, Articles of Association, Promissory Notes, Policy of Insurance etc; and vi. A duplicate or a subsidiary or a collateral instrument when it can be shown that the original or principal or primary instrument has been duly stamped Example Of Instruments Liable To Stamp Duty PURCHASE OF PROPERTY In the case of purchase of Immovable Property, the contract of sale and purchase is chargeable to ad valorem duty on the price. The duty at this rate is also payable where the instrument of transfer constitutes a DEED OF ASSIGNMENT executed on sale or gift of the contractual interest on the property. i. On the first RM100,000 RM1.00 for every RM100 or fractional part of RM100. (i.e. 1% on the 1 st RM100,000) ii. On any amount in excess of RM100,000 but not exceeding RM500,000 RM2.00 for every RM100 or fractional part of RM100. (i.e. 2% on the residue up to RM500,000) iii. On any amount in excess of RM500,000 RM3.00 for every RM100 or fractional part of RM100. (i.e. 3% on the residue over RM500,000) Lease & Tenancy Lease & Tenancy The lease or tenancy agreement which secures rental not exceeding RM2,400 per annum is EXEMPTED from duty. The prescribed rate of annual rent exceeding RM2,400 is as follows: When the lease is for a period Duty Rate Not exceeding one year RM1.00 Exceeding one but not exceeding three years RM2.00 Exceeding three years or for any indefinite period RM4.00 (For every RM250 or part thereof in excess of RM2,400) The undertaking for discharge of a debt is: Person Receiving Financing i) By way of promissory note, the duty on the note is RM10.00 irrespective of whether it is executed in favour of a commercial bank, merchant bank or borrowing company or otherwise. The stamping must be completed BEFORE the instrument is executed. ii) Secured by way of mortgage, charge, debenture and others, the duty on the principal security is calculated at the rate of RM 5.00 for every RM 1000.00 or part thereof.