EPF Withdrawal To Reduce Current Housing Loan

[vsat]

Guys,

Just want to ask if any of you have had any experience withdrawing from EPF to REDUCE current housing loan. If yes, does the withdrawal go straight to the bank of the housing loan or to your own bank account?

Thanks for the info. I plan to obtain another property and want to see if I can pay the 10% from this method.

[burntan]

Guys,

Just want to ask if any of you have had any experience withdrawing from EPF to REDUCE current housing loan. If yes, does the withdrawal go straight to the bank of the housing loan or to your own bank account?

Thanks for the info. I plan to obtain another property and want to see if I can pay the 10% from this method.

Go straight to your bank loan account and can't withdraw back for other uses. Even your current loan is like those Flexihome loan account like the Citibank offered (which allow you to withdraw excess payment), you won't able to withdraw a sen from it other than use to reduce your home loan.

[Henry T]

Naturally it goes straight to the bank. EPF don't trust you with your own money but we have to trust them with our money. Pretty ironic isn't it? :D

[cskok8]

Not true. My wife has done it about 3 years ago and every month the money is credited into her account (you specify which when applying for the withdrawal)

[vsat]

I require lump sum.

[fRaNkY]

The last time i withdraw, it goes into my account but its yours if you sells it rigth?

[mick123]

in my case, the first withdrawal goes to the bank. subsequent withdrawals for the same property goes to my account.

[fRaNkY]

The last time i withdraw, it goes into my account but its yours if you sells it rigth?

I meant housing loan account.

In 1997, i got a cheque and it went to the reno contractor via my bank account

[fRaNkY]

in my case, the first withdrawal goes to the bank. subsequent withdrawals for the same property goes to my account.

Can upgrade camera soon? :D

[burntan]

Trust me, it is no longer the same. I know last time you can opt to collect a cheque or have it bank in to your personal account. I just get mine early this year and they straight went in to my home loan account, can't touch a cent.

[cml]

When it goes to your account you have two options. One is the whole amount will be used to reduce the principal amount or you can ask the bank to monthly credit the account with the installment amount so you do not have to pay the monthly installments until the amount is used up. For this the bank will not give you any interest on the amount that is stting in your account and you should take this route if your cash flow is important as it would buy you some time before you need to start repaying the installments yourself.