Epf withdrawal for housing loan

[initialM]

Received an email on this issue. Whether true or not. Anyone got any idea or info on this? Shocking!!! Remember during Budget 2008 announcement last yr, our Finance Minister cum PM) announced that in order to assist KWSP members to reduce the burden in housing load repayment, KWSP will allow monthly withdrawal from members' A/C II for the purpose?Sounds like a nice goodies!When you apply for the monthly withdrawal, you only need to provide KWSP yr housing loan & installment details from yr bank and the bank a/c # you like KWSP to bank the monthly withdrawal into it. KWSP will approve yr application based on the available amt in yr A/C II and compute the withdrawal period by dividing the approved amt with the monthly installment amt. Application process takes about a month and you will receive the monthly payout promptly into yr bank a/c!Well everything appear to be nice and good. It was indeed a noble plan until you take to close look at yr KWSP Statement!This is how the so-called KWSP SCAM works.......Assuming you have RM100,000 in yr A/C II and yr housing loan's monthly installment is RM2000/mth.KWSP will approve yr application of withdrawal from yr A/C II of RM100,000 and pay you Rm2000/mth for the next 50mths.Everything appears to be in order BUT.......What KWSP didn't highlight to you is that when the application was approved, the TOTAL AMT (RM100,000) is removed from A/C II! It appears to be transferred to an unknown a/c to effect the monthly payment from therein.The impact to the member are as follows :-1. You just lost RM100,000 from yr A/C II. Assuming the KWSP Dividend is 5%, you will lose RM4,000 in dividend during the 1st year. Based on the above example you will lose RM10,000 over the 50 mths period!2. There is no statement to account for the amt approved vs. amt paid, hence you would need to keep the monthly payment voucher to reconcile against the approved amt over the 50mths period to ensure there is no missing amt!Assuming there are 100,000 members who innocently fell prey to this SCAM, based on the above example, KWSP would have cheated the members of 100,000 X RM10,000 = RM1,000,000,000 (that's RM1 BILLION) over the period!Furthermore, if you discovered this SCAM early and intend to stop the plan, KWSP would not allow any cancellation of the plan until at least 1 year. That would mean, once the application is approved, based on the above example, you would have lost RM4,000.100,000 members would have lost 100,000 X RM4,000 = RM400,000,000(RM400 MILLION) in One Year!!!

 

[suhaimi850]

Apa yang kerajaan laksanakan,kita mesti ingat dan waspada pro n kon.Tak semestinya semua yang terbaik.

 

[jaleeks23]

I recall reading that EPF stated they will still pay interest on the amount (rm100k) even though the amount doesn't reflect in your statement. The only way to check and verify is look at the dividend amount when time comes and challenge them if the dividend is not paid on rm100k. To avoid all this, don't take monthly. Furthermore, you're right, where and what do they use the Rm100k for since it's taken out?
They should just deduct on a monthly basis from the Ac II and show us, be transparent if indeed they still give us dividend.
Transparent clothes got la, transparent management....erm.....so many issues that requires transparancy yet are fully clothed.

 

[king82]

food for thought...and a 'warning' to be careful... thanks

 

[enkil]

Thanks for the heads up bro.

 

[initialM]

They should allow us to withdraw all the 2nd account for housing instead on installment so that can save bank interest. Damn if not I don't need to sell my UDM
to buy a house:thefinger::withstupid::boxing::banghead:

 

[jaleeks23]

I believe you can withdraw all from the 2nd account to buy house. As long as you never taken out before, you can take out, 1st time, the money goes to your bank account. subsequent withdrawals, goes directly to reducing housing loan.

 

[affan66]

just go to EPF and they will explain to you la.. then, don't forget to come back and tell all the real story. You can also check on the EPF website or call their customer service.

They are among the better government agencies. Very helpful and efficient. I did mine many times and have reduced my loan and paid upfront for new / sub-sale purchase before. Never had any hassle. Money in less than 2 weeks, which is what they published as their SLA.

 

[initialM]

Yup I found out EPF is very efficient nowadays..
For 1st house yes u can withdraw all & after certain period you can withdraw again whole amount in 2nd account. But for 2nd house(1st house still under ownership) you can only withdraw to pay installment. They will withdraw all amount from yr 2nd account but pay you the installment every month. I just confirm this situation with a fren who want to reduce the loan of his 2nd house:stupid:

 

[affan66]

there are reasons for that. Before this, we couldn't even touch Account 2 like now. So, it is good progress. But as usual human beings, we are never satisfied.

 

[initialM]

there are reasons for that. Before this, we couldn't even touch Account 2 like now. So, it is good progress. But as usual human beings, we are never satisfied.

I believe so. Again not for the sake of argument its individual choice either withdraw or not. EPF is retirement saving. It is best not to withdraw. Even if u withdraw it must reduce yr housing loan & save on interest charge. Again I think in M'sia is better compare to CPF in SG. Heard that u cant withdraw all even after age of 55. Not sure true or not. Again there are reason for that too:wink:

 

[Bailey]

wei u got TONNES of money to mod yr car so NO NEED TO WITHDRAW yr EPF maaaaaaa cabutssssssssssss

 

[initialM]

wei u got TONNES of money to mod yr car so NO NEED TO WITHDRAW yr EPF maaaaaaa cabutssssssssssss

Wei unker, money aredi pinis mod the car mah. Not like Chief Financial Officer very rich guy can buy E60

 

[ICEMAN 68]

wei u got TONNES of money to mod yr car so NO NEED TO WITHDRAW yr EPF maaaaaaa cabutssssssssssss

funny larrr .....this statement is nicely said ...

weiii initial m seems like you're a tauke marrrr ....compared both the e46 and e39 ..and the upgrades spent ... what is an e60 leyyy

 

[affan66]

we can argue til cow comes home on this one la... especially in this forum but it won't change the EPF rules.

 

[initialM]

seems like you're a tauke marrrr ....compared both the e46 and e39 ..and the upgrades spent ... what is an e60 leyyy

I'm more like taugeh lar.

we can argue til cow comes home on this one la... especially in this forum but it won't change the EPF rules.

Ya bro as human never enuff or satisfied wan. Got house want bigger house, Got car want more cars & got girlpren want more girlpren hehehe

 

[Bailey]

sure ka u got gofren ???????????? mmmmmmmm gayfren i know u got plenty

are u buying the bungalow at larkin beside puteri specialist or nong chik heights?

 

[affan66]

probably he's eyeing East Ledang or Horizon Hills la.. hehe

 

[initialM]

sure ka u got gofren ???????????? mmmmmmmm gayfren i know u got plenty

are u buying the bungalow at larkin beside puteri specialist or nong chik heights?

Wei Unker rumour bad for yr health lar. I buying Setingarden house oni.

 

[Bailey]

probably he's eyeing East Ledang or Horizon Hills la.. hehe

if it's either one , kompom adjacent to PONTIAN hehehe

grab the Larkin bungalow la sure wont regret