EPF withdrawal possible for PR1MA but…….

First of all, please buy within affordability. Getting a loan, whether from relatives or from a commercial institution is a huge commitment. Keep everything safe. That home sweet home can be one if you are happily staying. It will not be one if you have to work like crazy and struggle every month just to pay for it. For those who needs more assistance on end-financing, the Employees Provident Fund (EPF) has just confirmed that for members who meet the 1Malaysia People’s Housing Scheme’s (PR1MA) eligibility criteria, they can now apply for a new end-financing scheme. For the actual implementation date, EPF is still working with PR1MA, Bank Negara Malaysia and the participating banks to finalise the implementation details.

There is however a caution from EPF for members who chose this end-financing withdrawal. It said, “all other pre-retirement withdrawals under Account 2, namely medical, education, age 50 and haj withdrawals, will no longer be available until full settlement of the PR1MA loan has been made.” In other words, the property that EPF members chose to buy with their withdrawal should preferably be a good one; property prices rise faster than the typical EPF dividend rate. Else, the members would be losing on both ends. This is the reason why I would prefer my EPF to remain my EPF. For all other investments, I will try my best to work harder and save more money for them.

As for announcement by Prime Minister Datuk Seri Najib Tun Razak in announcing Budget 2017 in Parliament, he also shared the following which I consider good news for many people for having purchased a roof over their heads. Najib said, “PR1MA is well-received. More than 12,000 units worth RM3.3bil have been booked, while 85,000 units are at various stages of approval.” For members who are interested, do refer to PR1MA’s website at http://www.pr1ma.my or PR1MA’s call centre at 03-7962 4374 for more information about this scheme. Happy calling and deciding.

written on 21 Oct 2016

Next suggested article:   EPF: More into private equity, property and infrastructure

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