Buyer Guide

Buyer Guide

Before buying a house @ property, work out a budget, you could work out your affordability by referring to the loan calculator. Your budget would depend on your monthly income. As a general roll of thumb, your monthly salary should at least be three times your monthly repayment installment.

  • Apply for a housing loan immediately to avoid paying interest on late payment. Banks/Finance Institution need time to process the loan and there is a fair amount of documentation to be done before the bank release monies to pay for the property.
  • Those in government service can apply to Bahagian Pinjaman Perumahan, Treasury for a government loan.
  • Don’t forget your entitlement to withdraw from your Employee’s Provident Fund (EPF) (KWSP) account. You can withdraw every 5 years starting from the time your first contribute to it and every withdrawal is limited to a maximum of 30% of your total fund or from Account 2.
Checklist for housing/property loan application from bank/financial institution:-
For Salary Earner

  • Photocopy of your identity card
  • Photocopies of your latest 3 months salary slips
  • Photocopies of your EA Form or Income Tax Submission BE
  • Sale and Purchase Agreement /deposit or booking receipt/letter of offer from the housing developer

For Self- Employed
All the documents stated above (except for salary slip & EA Form) and the following:

  • Business registration document
  • Latest 6 months bank statements
As a government loan applicant, you may obtain advised from Departmental Head on the requirements for a housing loan or you may refer to website: for further information. However, for your convenience, the document listed below are required for loan application:

Checklist for government loan application to Bahagian Pinjaman Perumahan –

  • Application form to be completed in detail
  • Letter of Confirmation and recommendation from your Department Head
  • Processing fees (RM1.00 for every RM1,000.00 of loan amount)
  • Borang VII (Format VII)- Declaration from the borrower giving consent to the Federal —Government to deduct his/her salary for loan installment (inclusive interest).
  • Copy of title deed
  • Lampiran A – Declaration from the developer consenting to a registrar’s caveat
  • Format XIV – to be endorsed by the developer and the borrowers’ solicitors
  • Solicitors declaration –confirmation of stakeholder and finalization of loan documents. Borang Akuan SPP 21/86 – Lampiran IV
  • Letter to the housing loan unit confirming the ability to settle the difference between loan and purchase price.
  • Copy of Power of Attorney, if the agreement has been attested by the Power of Attorney
  • Certificate of Compliances and Completion for completed project
  • The progress payment will be released by the Housing Loan Division only when the title (landed property) and loan agreement cum assignment (strata title) has been registered at the land office and High Court respectively.

Note: The abovementioned format might be changed by the government housing loan Unit.

The government loan application is handled by:
Lembaga Pembiayaan Perumahan Sektor Awam
No. 9, Kompleks Kementerian Kewangan
Persiaran Perdana, Presint 2
Pusat Pentadbiran Kerajaan Persekutuan
62592 Putrajaya

Tel: 03 – 8880 1600

As a member, EPF allows you to utilize the saving from Account 2 which is 30% from your contribution from monthly salary to partially finance your purchase of a house or jointly with your spouse or close family members namely parent or siblings.
EPF also allows withdrawal for your purchase of a second house on condition that you have sold (not in possession) of the first house purchased trough EPF withdrawal.

Application for withdrawal can be made once every year from the date of the last housing withdrawal, with a minimum amount of RM500 to reduce or redeem the housing loan for first house.

Checklist for Employee Provident Fund (EPF) Withdrawal, document listed below are required for EPF withdrawal:

  • Submission of EPF withdrawal form (Form KWSP 9C(AHL)
  • The original copy of the Sale and Purchase Agreement
  • Photocopy of your identification card
  • A copy of the letter of loan approval from your end financier
  • Proof of relationship (This is for joint purchase involving spouse or next of kin namely parent 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 you are buying a house with cash term, you need to submit all the document stated above (except loan approval letter) and the following:

  • A confirmation letter from the developer stating the purchase is by cash
  • Proof of payments of at least 20% of the price of the house
  • Architect’s Certificate to confirm progress of construction is not less than 20%

For EPF withdrawal, you may just log in for more information or just walk-in to the nearer KWSP branches at your area for more detail.

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 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’.