Great Income Enhancer

Posted on 2:30 PM | By Smart Wealth Advisory | In

New Launched Product by Great Eastern!



We are pleased to announce that Great Income Enhancer and its riders have been launched on 1st September 2010.

This is a limited pay Endowment plan which offers a choice of premium payment term of 15 years or 20 years ,and pays survival benefits from the end of the 10th and 15th year onwards, respectively.

Smart Early Payout CriticalCare

Posted on 2:27 PM | By Smart Wealth Advisory | In

New Launched Product by Great Eastern!



We are pleased to announce that Smart Early Payout CriticalCare has been launched on 1st September 2010.

Smart EPCC is a severity-based critical illness rider that gives you a payout at the early stage of critical illness, before the illness becomes more severe. With the advantage of early financial support, you canfocus on early treatment and recovery before the illness progresses to a more severe and advance stage.

It is a new and innovative investment-linked rider.This rider is the first of its kind in Malaysia!


OCBC Home Loan

Posted on 11:19 AM | By Smart Wealth Advisory | In

New promotion for OCBC Home Loan!


If loan amount more than RM300K, BLR will less 2.3%.
If loan amount less than RM300K and more than RM200K, BLR will less 2.2%.
If loan amount less than RM200K, BLR will less 2.1%.

Explaining Life Insurance in Malaysia

Posted on 4:52 PM | By Smart Wealth Advisory | In

Having life insurance is as important - MRTA could be one of your best choices. But before selecting your life insurance, figure out these facts before you make your decision.


Life Insurance is an insurance policy that help protects you and your family financially during certain times of hardship. It works like this - Should you pass away or suffer total and permanent disability, your family will still be financially sound at least temporarily.

There are a few reasons why you should obtain life insurance:

  1. Ensure that you still have an alternative source of income should anything happen to you (illness, death, disability, etc)
  2. To finance your children's education. You need a child education policy for this. (See below).
  3. Savings plan for retirement stage. This could not only mean EPF, but a way of getting another steady stream of your savings after retirement.

Life insurance policies vary from usage to type:

  • MRTA (Mortgage Reducing Term Assurance)
    This policy helps with the repayment of your outstanding property loan should anything happen to you.
  • Investment Linked Life Insurance Policy
    Your premiums are used to fund life insurance protection and units in a fund. The benefits paid to you or your nominee will depend on the price of the units at the time you surrender the policy or when you pass away.
  • Endowment Insurance Policy
    This combines protection and savings. The money will be paid at the end of a specific period upon your demise should any major life threatening event happen to you. If you are still living after the policy matures, you will get the money, otherwise, the money will be given to your nominee.
  • Supplementary Rider (or Cover) Insurance Policy
    A rider is a supplement attached to the basic insurance plan, such as an endowment or whole life. It gives you flexibility to help with your personal finance such as coverage against accident, total and permanent disability or hospitalisation. You will need to pay additional premiums.
  • Term Insurance Policy
    This offers insurance protection for a limited period only. The money will be paid only if you pass away or if you suffer total and permanent disability during the term of the policy.
  • Life annuity Insurance Policy
    • Immediate Annuity - Payments begin within 12 months after you buy the annuity. Those who are about to retire or have already retired will choose this type.
    • Deferred Annuity – Payments begin 12 months after you buy the annuity (or longer). People will buy this type during their working years to provide retirement income later in their lives.

Income tax relief

You can claim tax relief on the premiums that you pay, subject to certain terms and conditions. An ordinary life insurance policy would quality for a maximum of of RM6,000/year inclusive of any contributions you've paid to an approved retirement plan (e.g. EPF/KWSP). For a medical or education policy, the tax relief is RM3,000 per year.

FAQ : EPF Withdrawal to Purchase a House

Posted on 3:28 PM | By Smart Wealth Advisory | In


  1. What are the requirements for Withdrawal To Purchase A House? Members must be:
    - Malaysian citizens; OR
    - Non-Malaysian citizens who have obtained Permanent Resident (PR) status; OR
    - Malaysian Citizens who have made Leaving The Country Withdrawal before 1 August 1995 and have opted to re-contribute to the EPF; OR
    - Non-Malaysian citizens who have became members before 1 August 1998;
  2. What is the amount entitlement under Withdrawal To Purchase A House?
    Members can withdraw their savings according to the following, whichever is lower;
    a) Individual Purchase – The difference between the house price and the loan amount plus an additional 10% of the house price; OR
    All the savings in the applicants’ Account 2 subject to maximum amount eligible for withdrawal (whichever is lower)

    b) Joint Purchase With Spouse, Family Member or Other Individuals
    c) For housing loan of 100% - 10% from the cost of building the house; OR All savings in Account 2 (whichever is lower)

    d) Cash purchase – house price with an additional 10% from the cost of building the house; OR All savings in Account 2 (whichever is lower)

  3. How is the payment made?
    The payment for withdrawal will be credited directly to the bank account with the following conditions:
    - Members own a bank account with the EPF elected panel banks.
    - Members’ bank accounts are still active, and
    - Members’ bank accounts types are individual savings/current accounts OR Individual Joint Account for withdrawal amount of more than RM100,000.00
  4. How do I submit the applications?
    Applications can be submitted at any EPF Offices nearby, either at the counters or by post.

EPF Housing Withdrawals

Posted on 3:23 PM | By Smart Wealth Advisory | In

Withdrawal to Purchase a House

PURPOSE

  • This withdrawal allows you to utilize your savings from Account 2 to partially finance your purchase of a house individually OR jointly with your spouse or close family members namely parents or siblings.
  • Buying of a house with another individual who has no kinship is allowed provided that the other individual is a buyer and borrower.
  • This withdrawal allows you to buy a house from a developer or an individual or through a public auction.
  • EPF Withdrawal to purchase a second house is allowed after the first house purchased utilizing EPF has been sold or disposal of ownership of property has taken place. Disposal of ownership refers to 'loss of ownership of the first house owned by you either due to auction, surrender of property by court order, transfer of ownership because of love and affection, destruction of house due to natural disaster, abandoned housing project or cancellation of purchase'.

APPLICATION ELIGIBILITY

  • (i) A Malaysian Citizen; OR
    (ii) A Malaysian Citizen who has made Leaving The Country Withdrawal before 1 August 1995 and has opted to re-contribute to the EPF; OR
    (iii) A Non-Malaysian Citizen who:
    • Has became an EPF before 1 August 1998, OR
    • Has obtained a Permanent Resident (PR) status.
  • You have not reached the age 55 at the time the EPF receives your application; AND
  • You have a minimum savings balance of RM500.00 in your Account 2.
Terms Of Withdrawal

You are eligible to apply if you:

1. Buy a residential house (type: bungalow / terrace / semi-detached / condominium / apartment / studio apartment / service apartment / townhouse) or a shop lot with residential unit or a small office home office (SOHO) unit.

2. The purchase of the house is financed by:

(i) Housing loan from any of the following institutions:

• Financial Institutions licensed under the Banking and Financial Institutions Act 1989 (BAFIA);
• Central / State government or any other government financial agencies;
• Member’s employers;
• Cooperatives / Cooperative Companies with license (approved by Cooperative Development Department, Ministry of Entrepreneur and Co-operative Development)
• Licensed insurance companies as approved by the Central Bank of Malaysia;
• Loan providers as allowed by the EPF; OR

(ii) Cash.

3. The date of the Sale and Purchase agreement is not more than three (3) years at the time your application is received by the EPF.

4. You have never made a Housing Withdrawal; OR you have made a withdrawal to purchase your first house and have sold the house or disposal of ownership has taken place and now you intend to build your second house. Proof of sale / disposal of ownership of the first house must be submitted to the EPF.

5. You want to buy a house which has been acquired from a rental with a view of purchase agreement from a party authorised by the EPF.

6. You have bought a land and built a house on the same land simultaneously (dates of the agreement to purchase the land and the agreement to construct the house must be within 6 months).

You are not eligible to apply if you:

• Buy a land or a house lot only.
• Renovate, repair or do additional work to the existing house..
• Property ownership is not via sale & purchase transaction.
• Have taken an overdraft loan.
• Buy a third house.
• Buy a house in a foreign country.


Withdrawal Eligibility The amount that you can withdraw is as follows:

HOUSE PURCHASE FROM AN INDIVIDUAL

JOINT PURCHASE WITH SPOUSE OR OTHER INDIVIDUAL

The difference between the house price and the loan amount plus an additional 10% of the house price

OR

All your savings in Account 2


(Whichever is lower but not less than RM500.00)

The difference between the house price and the loan amount plus an additional 10% of the house price

OR

All the savings in each purchaser’s Account 2 subject to maximum amount eligible for withdrawal

(Whichever is lower but not less than RM500.00)

100% HOUSING LOAN

CASH PURCHASE

10% of the house price

OR

All your savings in Account 2

(Whichever is lower but not less than RM500.00)

Price of the house with an additional 10% of the house price

OR

All your savings in Account 2

(Whichever is lower but not less than RM500.00)

  • You may choose to decide on the amount to withdraw from your Account 2, subject to the maximum amount eligible by filling in the desired amount in the housing withdrawal Form 9C (AHL).
  • You may have made a housing withdrawal before but have cancelled the purchase of the house and now you wish to make this withdrawal to purchase a house. In this situation, the amount withdrawn need not be returned to the EPF. The earlier withdrawn amount will be deducted from the current eligible amount subject to the balance eligible (if any).
List Of Documents Required

A. MAIN DOCUMENTS
1.1 Form KWSP 9C (AHL)

1.2 Malaysian Identification Card (MyKad)/ Military Identification Card/Permanent Resident Identification Card (MyPR).
OR
Police Identification Card affixed with your right and left thumbprints on its copy and a letter from your employer confirming that your police number and Identification Card number refer to the same person.
OR
Passport if you are a Non-Malaysian citizen who has become an EPF member before August 1998.

1.3 Your Personal Savings Account Passbook / Statement OR the original copy of Personal Current Account Statement OR Individual Joint Account (for withdrawal exceeding RM100,000.00):

  • The bank account must be active.
  • The bank account must be with a Panel Bank approved by the EPF.

1.4 Sale & Purchase Agreement (purchase from developer) OR Proclamation of Sale from Administrator / Court (public auction purchase) which contains the name of the member or names of all members (for joint purchase) and the date of execution does not exceed 3 years on the date the withdrawl application is received.

1.5 If a housing loan is involved, the following documents will have to be produced:

  • Housing Loan Approval Letter (if the loan approval is less than one (1) year from the date the withdrawal application is received); OR
  • Housing Loan Approval Letter and Housing Loan Agreement/ Mortgage Form 16A (if the housing loan approval has exceeded one year from the date the withdrawal application is received).

1.6 Proof of relationship (for joint purchase involving spouse or next of kin namely parents or siblings. For joint purchase involving next of kin, the member is required to submit an explanation letter stating the reason for the joint purchase.

B. PURCHASE FROM DEVELOPER OR PUBLIC AUCTION
  • All documents in paragraph 1.1 to 1.6;
  • If it is a cash purchase, the following additional documents must be produced:

PURCHASE FROM DEVELOPER

PURCHASE FROM PUBLIC AUCTION

a) A confirmation letter from the developer stating that purchase is by cash; AND

b) Proof of payments of at least 20% of the price of the house; AND

c) Architect’s Certificate to confirm progress of construction is not less than 20%.

a) A confirmation letter from a lawyer’s office that handles the transaction stating that the purchase is by cash; AND

b) Proof of payment of at least 20% of the price of the house; AND

c) Transfer of Ownership documents which include:

  • Form KTN 16F (Perakuan Jual oleh Mahkamah); OR
    Form KTN 16I (Perakuan Jual oleh Pentadbir Tanah); OR

  • Land Title Deed in the member’s name; OR
  • Deed Of Assignment AND letter of confirmation from buyer/seller’s lawyer stating that the Notice of Assignment has been produced and received by the developer under the Section 22D (2) Housing Developer Act (Control And Licensing) Amendment 2007; OR
  • Form KTN 16F/ 16I in the name of the member which has not been completed by the Land Office AND Statement of Transfer from the Land Office which has been completed AND A statutory declaration to confirm the purchase of the house, and if the member does not proceed to purchase or do not/fail to produce the transfer of ownership document that bears the member's name within 6 months from the date his/her application is approved the member's withdrawal is deemed void. The member then must return to the EPF all of the withdrawal amount which has been made).

C. PURCHASE FROM INDIVIDUAL

  • All documents in paragraph 1.1 to 1.5;
  • If the purchase is from the next of kin (parents/ spouse/ children/ siblings), you have to produce the proof of transaction which in this case refers to Transfer of Ownership Form (Form KTN 14A) / ‘Deed of Assignment/ Memorandum Of Transfer;
  • If the purchase is made with a loan, the following additional documents must be produced:

INDIVIDUAL / STRATA TITLE HAS BEEN ISSUED

INDIVIDUAL / STRATA TITLE HAS NOT BEEN ISSUED

Title Deed in the name of the seller AND Letter of consent issued by the Land Office for the transfer (if there is restriction on the property);

OR

Title Deed in your name;

ORDuly completed Form KTN 14A by the Land Office in your name.

Letter of consent from the developer for the transfer AND Letter of consent issued by the Land Office / Local Authority for the transfer (if there is restriction on the property);

ORDeed of Assignment in your name.


  • If the purchase is made by cash, the following additional documents must be produced:
    (a) A confirmation letter from a lawyer’s office that handles the transaction stating that the purchase is by cash;
    (b) Proof of payment of at least 20% of the price of the house; AND
    (c) If Form KTN 14A OR Deed Of Assignment in your name as mentioned above has not been processed by the Land Office, the following documents are required:

INDIVIDUAL / STRATA TITLE HAS BEEN ISSUED

INDIVIDUAL / STRATA TITLE HAS NOT BEEN ISSUED

Transfer of Ownership form (Form KTN 14A) in your name which has not been completed by the Land Office AND Receipt of Submission ("Penyata Perserahan") from the Land Office;

OR

A statutory declaration to confirm the purchase of the house, and if the member does not proceed to purchase or do not/fail to produce the transfer of ownership document that bears the member's name within 6 months from the date his/her application is approved the member's withdrawal is deemed void. The member then must return to the EPF all of the withdrawal amount which has been made).
AND

Letter of consent issued by the Land Office / Local Authority for the transfer (if there is restriction on the property).

Confirmation Letter from the developer stating the details of the house purchased by you (following Section 22D (4) Housing Developer Act (Control And Licensing) Amendment 2007;

AND

A statutory declaration to confirm the purchase of the house, and if the member does not proceed to purchase or do not/fail to produce the transfer of ownership document that bears the member's name within 6 months from the date his/her application is approved the member's withdrawal is deemed void. The member then must return to the EPF all of the withdrawal amount which has been made).


D. Purchase Of Land And Construction Of A House As A Package

  • All main documents in paragraph 1.1 to 1.6;
  • Construction Agreement for the house containing your name or the names of all applicants for joint withdrawal is executed not more than 3 years from the date the application is received by the EPF;
  • Sales and Purchase of Agreement of the land in your name or the name of all applicants for joint withdrawal and the date of agreement is within 6 months with the House Construction Agreement;
  • Title Deed of the land in the name of the seller/ developer;
  • Power of Attorney that has been registered at the court if the purchase of land and house construction is made through Power of Attorney;
  • Proof of relationship (for joint purchase involving spouse or next of kin namely parents or siblings. For joint purchase involving next of kin, the member is required to submit an explanation letter stating the reason for the joint purchase.
  • If the purchase has been made by cash, the following additional documents must be produced:
    (i) A confirmation letter from the developer stating that purchase is by cash; AND
    (ii) Proof of payments of at least 20% of the price of the house; AND
    (iii) Architect’s Certificate to confirm progress of construction is not less than 20%.

D. Withdrawal To Purchase A Second House

i) Documents as proof of purchase of second house as in paragraph A to C whichever is relevant; ANDii) The following Proof of sale or disposal of ownership of the first house, whichever is relevant:

a) Ownership of Transfer Form KTN 14A in the name of the new owner(s) duly completed and endorsed by the Land Office or house ownership transfer because of love and affection (to the nearest family member (s) including parents / children / spouse / siblings together with proof of relationship); OR

b) Deed Of Assignment; AND letter from seller’s/buyer’s lawyer which confirms that the Notice of Assignment has been produced and received by the developer under Section 22D (2) Housing Developer Act (Control And Licensing) Amendment 2007 (for property transactions after 12 April 2007);

c) Deed Of Assignment between you and the new owner; OR

d) Land Title Deed in the name of the new owner AND Sale and Purchase agreement between you and the new owner; OR

e) Real Property Gain Tax Form 5 AND Sale and Purchase agreement between you and the new owner (for property sale before 1 April 2007); OR

f) Form KTN 16F (Perakuan Jual oleh Mahkamah) or Form KTN 16I (Perakuan Jual oleh Pentadbir Tanah); OR

g) Confirmation of property auction by the bank; OR

h) Transfer of ownership by Court Order to any party AND divorce documents (for divorce cases); OR

i) A formal search from the Land Office that indicates that the name of the new owner of the said property AND Sale and Purchase agreement between you and the new owner; OR

j) Confirmation letter from the authorities (Housing and Local Government Ministry/ Municipal Councils/ District Offices/ Penghulu) for houses damaged by natural disasters or abandoned housing projects; OR

k) Deed Of Revocation or Deed of Rescission; OR Confirmation Letter from the developer/lawyer on the cancellation of the purchase; OR

l) Assessment Bills issued by the Municipal Council / local authorities in the name of the new owner AND Sale and Purchase agreement between you and the new owner.

Note:

Members who wish to submit their applications through post must complete Application for Member’s Registration and Amendment of Member’s Particulars Form (KWSP3) and attach it together with the application form. Members are advised to read the instructions in the guide carefully before filling in the form.


Modes Of Payment

A. Payment in Malaysia

  • Payment is via direct crediting into your bank account subject to the following conditions:

a. Your bank account is still active; AND

b. Your bank account is with a panel bank appointed by the EPF; AND

c. Your bank account is a Personal Savings/Current Bank Account OR a Joint Bank Account (for withdrawal amount more than RM100,000 only).

d. Your personal indentification number matches with the bank’s record.

e. Payment is in Ringgit Malaysia (RM).

  • If EPF is unable to credit the payment into your bank account, due to causes such as bank account is not active or your personal identification number does not match with the bank’s record, you will be paid by banker’s cheque.


B. Remittance of Payment to Foreign Countries

Payments are made through Foreign Bank Draft. Types of currency available are as following:

  • The currency of the country where you reside based on the address given in the KWSP 9C (AHL) Withdrawal Form; OR
  • In US Dollar if the EPF is unable to make the payment in the currency of the country of your residence; OR
  • A foreign currency as per your request according to the KWSP 9C (AHL) Withdrawal Form.
Submission Of Application

Your application may be submitted to any of the EPF branches either via the counter or by post.


Submission At The Counter

Please bring along the original documents together with the photocopies of the same documents for verification purposes by the EPF Officer (if documents verification has not been done).


Submission By Post

  • Please make sure that ALL documents have been verified by an officer allowed by the EPF, complete with full name, designation and an official stamp except for stipulated documents which must be verified by the EPF Officers only. Please click the link for the list of Authorised Document Certifying Officers and Witnesses
  • All applications by post must be addressed to:

THE EMPLOYEES PROVIDENT FUND
Locked Bag No. 220
Jalan Sultan
46720 Petaling Jaya
SELANGOR DARUL EHSAN.


Important Notice

Amount Withdrawn Not To Be Utilized For Other Purposes

An amount withdrawn shall be utilized solely for the purpose for which the withdrawal was authorized. Where all of the amount withdrawn or any part of the amount is not utilized for the purpose for which such withdrawal was authorized, the member shall return all the amount or the part which is not utilized to the EPF within six months from the date of withdrawal. Any member who contravenes this requirement shall be guilty of an offence.


Submission Of False Application

Any application received and found to contain false information or forged documents will be deemed to have committed an offence under Section 59 of the EPF Act and if found guilty shall be liable to imprisonment for a term not exceeding three years or to a fine not exceeding ten thousand ringgit or to both.

Please click to read about Offences and Proceedings.