Saturday, October 13, 2007

Good news for those who to buy a house

This is a really a piece of good news for those who wish to buy house or have housing loan in hand at this moment. Now you can withdraw your EPF via monthly basis and directly credited to your personal account and not to the lending bank. Therefore you can either use the amount to offset your current housing loan installment or for you to afford a bigger or more expensive house.

Example given by Second Finance Minister Tan Sri Nor Mohamed Yakcop as below:

"It is a simple mechanism. For instance, let's say your monthly salary is RM2,000, 30% of your EPF contribution will go to Account 2.

Your monthly housing loan repayment is now RM500 and you can use RM138 to offset the housing loan installment. The RM138 will be credited to your bank account every month.

"In another situation, you are thinking of buying a house, but you can only afford to pay RM400 a month. With RM138 withdrawn monthly from EPF, you can afford to buy a bigger house and pay RM538 monthly," he said.

Too bad, this privilege only applicable to those contributors that have housing loan in hand. Other wise I will also kpc go and apply for withdrawal for personal use.