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Related Articles On House-Building
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Planning to Build a House using KWSP?
Planning to Build a House Using KWSP? Here’s What You Need to Know! Building a home can be a big dream, but with KWSP, you can breathe a little easier. KWSP allows withdrawals from your Sejahtera Account to help finance the cost of building a house on your own land, your spouse's land, or recognized land such as FELDA. You can use this withdrawal for either your first home or second home. Whether you're taking a loan or using your own money, KWSP is ready to help. Who Is Eligible?
Malaysian citizens or non-citizens.
Under the age of 55.
Have a minimum balance of RM500 in your Sejahtera Account.
Have a House Building Agreement that is not older than three years from the application date.
Building a house on your own land, your spouse's land, or government land (FELDA, Sabah, Sarawak, etc.).
What Can You Withdraw? If using a loan, the difference between the construction cost and the loan amount plus 10%, or the entire savings in your Sejahtera Account. If using your own funds, the construction cost plus 10%, or the entire savings in your Sejahtera Account. Required Documents: KWSP Form 9C (AHL). Copy of MyKad or identification document. Valid house building agreement. Bank book or bank statement for verification. What's Next? Gather all required documents, ensure you meet the eligibility requirements, and begin the application process.
It’s a smart way to help you achieve your dream of owning a home without impacting your retirement savings. For more information, visit KWSP Housing Withdrawals to learn more about how KWSP can assist you here.
Tips for Housing Loan!
Owning your own home is a dream for many, but securing a housing loan can be challenging. Don’t worry! Here are some tips to help you through the process of getting a housing loan:
Determine Your Budget - Understand your budget well and make sure it aligns with your financial capability. Don’t be tempted by a large house that may exceed your means. Banks usually recommend that monthly loan payments do not exceed 30% of your salary. For example, if your salary is RM3,000, an ideal monthly payment would be around RM900. Plan carefully to avoid financial stress each month.
Compare Housing Loans - Once you’ve set your budget, it’s time to compare the loans offered by various banks. Use apps like MyKNP to compare interest rates among banks. A bit of smart research today can bring big benefits in the future.
Prepare Required Documents - The next step is to ensure that all required documents are ready. To apply for a housing loan, you’ll typically need to provide the latest three months' salary slips, EPF statement, bank statement, and a copy of your ID. By preparing these documents in advance, you’ll make the application process smoother and save time. Make sure you have everything in place for a seamless application.
Check Your Debt Service Ratio (DSR) - Have you heard of the Debt Service Ratio (DSR)? The DSR measures your current debt obligations. Banks use it to assess your loan eligibility. If your debt commitments are low, your chances of getting approved for a loan are higher. So, if you have other debts, try to settle them first. This step can improve your chances of securing the housing loan you desire.
By following these tips, you’ll be better prepared to apply for a housing loan. Take the first step towards your dream home!
