I bought my first home (note, I really cherish it and wanted to make it forever...) in year 2000. That time, I was only 2nd year to really working full time. I took a loan from my parents (as an advanced wedding angpow) + savings and bought. Never, NEVER I told myself that I will utilised the EPF money as EPF is MEANT FOR RETIREMENT. So naive. Being 24. What do you expect?
For the next few years, I worked so hard and every penny goes into the home. Left me with very little savings and some times negative in the a/c comes festive season.
When the trigger of change (note, there was a huge change in my life) came in year 2007, I realised time to visit the EPF and use up A/c 2 to reduce the loan.
It was very easy. I really salute EPF Shah Alam Branch for their efficiency.
Documents you need:
The EPF Form which you can download from their web
Photocopy of your IC
Bank letter to mention the balance of loan
It was in year 2007 and I remember vividly that it took 1 month for EPF to send me the cheque. Extremely pleased and by year 2008, I completed the loan for the house we bought at RM280k in USJ 9 in Year 2000.
In year 2008 when I did a second withdrawal, I only needed the form, Photocopy of IC and Bank Letter.
EPF allows contributors to use it for their first house purchased. If you have more than 1 property and wanted to withdraw EPF for your 2nd property, you needed to show evidence and proof that your first house is properly disposed off. a S&P is not sufficient. They need the Land Title to proof.
Anyway in year 2011, I did a withdrawal on my 2nd property. This time, I visited the same branch and within 1 week, I got it approved (approval was 1 day) and 4 days later, the money was in the bank.
Not sure about other branches, but Shah Alam, the one I frequent is good for me.
I also utilised my EPF A/c1 for UNit Trust Investment purposes and Proud to say, up to today, I have been making good profit..returns at min 10%. If you leave your money in EPF A/c 1, interest is only 3-4% annually. The bulk of your money is in EPF A/c1. So must make full use.
So come 2012, I am going to EPF again to do loan reducing for my property...woohoowhoohoo