Buying Guide · Stage 2: Booking & the home loan

EPF Withdrawal for Housing in Malaysia: Akaun Sejahtera Rules and Steps

An EPF withdrawal for housing comes out of Akaun Sejahtera: when you buy, you can take the lower of (price minus loan, plus 10% of the price) or your whole Akaun Sejahtera balance, provided you are under 55 and have at least RM500 in the account. Below are the six housing withdrawals KWSP lists, worked examples, documents and the i-Akaun steps, as at September 2026.

Akaun Sejahtera 15%Price minus loan + 10%Under 556 housing withdrawal typesVerified 2026-09-20

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Part ofBuying new property Buying subsale property Stage 2 · Booking & the home loan

By Louis Koh · 11 years in Malaysian propertyVerified: 2026-09-207 min read📞 +60 10-906 6685

Short answer

EPF housing withdrawals come from Akaun Sejahtera, which takes 15% of each monthly contribution. When you buy, you may withdraw the lower of (price minus approved loan, plus 10% of price) or your whole Akaun Sejahtera balance: a RM500,000 home with a RM450,000 loan caps it at RM100,000. You must be under 55, have at least RM500 in the account, and apply within 3 years of the SPA.

Key numbers at a glance

Account used	Akaun Sejahtera (15% of monthly contributions)
Buy-house limit with a loan	Lower of (price – approved loan + 10% of price) or your balance
Self-financed purchase limit	Lower of (price + 10% of price) or your balance
Age and minimum balance	Under 55; at least RM500 in Akaun Sejahtera
SPA age limit	SPA no more than 3 years old at application
Monthly instalment withdrawal	RM600 in the account, at least RM100 a month, 6 months minimum, one house
Reduce or redeem loan	Lower of loan balance or account balance (minimum RM500), once a year
How to apply	KWSP i-Akaun or form KWSP 9C (AHL); thumbprint within 14 working days

Key points in 30 seconds

Since 11 May 2024, contributions are split 75% Akaun Persaraan, 15% Akaun Sejahtera and 10% Akaun Fleksibel; housing withdrawals come from Akaun Sejahtera.
Buy-house limit = the lower of (price minus approved loan + 10% of price) or your full Akaun Sejahtera balance; a RM500k home with a RM450k loan caps it at RM100,000.
Basic conditions: under 55, at least RM500 in Akaun Sejahtera, first housing withdrawal or the earlier home sold, and an SPA no more than 3 years old.
Monthly instalment withdrawal needs RM600 in the account, pays at least RM100 a month for at least 6 months, and covers one house only.
Reduce/redeem withdrawals can be made once a year, for the lower of the loan balance or your balance (minimum RM500).

EPF withdrawal for housing: which account can you use?

From 11 May 2024 the Employees Provident Fund (EPF / KWSP) splits each monthly contribution into three accounts:

Account	Share of contributions	Use for housing?
Akaun Persaraan (retirement; formerly Account 1)	75%	No housing withdrawals
Akaun Sejahtera (well-being; formerly Account 2)	15%	Yes: every housing withdrawal comes from here
Akaun Fleksibel (flexible)	10%	Withdraw any time for any purpose (minimum RM50). Not a “housing withdrawal”, but the cash can go to a down payment

From Louis: people still say “use Account 2 to buy a house”; today that means Akaun Sejahtera. Only its balance counts towards your housing limit. Akaun Fleksibel money is withdrawn separately.

Types of EPF housing withdrawal

Withdrawal	What it’s for	Key conditions
Buy House	Down payment, costs or a cash purchase	Under 55; at least RM500; SPA within 3 years
Build House	Buy land and build, or build on your own land	Construction agreement within 3 years
Monthly Instalment	Automatic monthly help with your loan	At least RM600; minimum RM100 a month; at least 6 months
Reduce/Redeem Housing Loan	Lump sum to cut or clear the loan	At least 1 year between applications
Flexible Housing	Ring-fences savings so banks can count them as income, raising your loan eligibility	Applied with a Buy/Build or Reduce/Redeem withdrawal; minimum 1 year
PR1MA Housing	For PR1MA buyers financed under SPEF	Malaysian citizens; apply via a panel bank

This guide focuses on the buy-house withdrawal and the two loan-repayment withdrawals. PR1MA and other first-home help is in first-time homebuyer incentives.

What is the Flexible Housing withdrawal? It does not pay money out. It ring-fences part of your Akaun Sejahtera so that banks can treat those savings as income when assessing your loan, which can raise how much you can borrow. You must be a Malaysian citizen or PR, own a residential property and have a loan approved by a recognised lender. The ring-fence lasts at least one year, covers one house at a time, and the money cannot be used for other withdrawals meanwhile; dividends still go to Akaun Sejahtera. You apply through your lender, together with a Buy/Build or Reduce/Redeem withdrawal. If your DSR is tight, ask your bank whether it accepts this; see DSR explained.

What treating EPF as your deposit costs

EPF cannot pay your booking fee or the 10% at signing, because you can only apply once the SPA is signed and the loan approved. Buyers who budget around it come up short, and on a subsale the earnest deposit is 2% to 3% of the price, RM10,000 to RM15,000 on a RM500,000 home, which you can lose if the deal falls over. Treat EPF as a reimbursement.

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I will work out your buy-house withdrawal cap for free and list the documents KWSP will ask you for.

EPF buy-house withdrawal: conditions and how much you can take

Under 55 when you apply (KWSP says Malaysian and non-Malaysian members can use this withdrawal).
At least RM500 in Akaun Sejahtera.
A residential property: landed house, apartment, condominium, townhouse, SOHO or a shop lot with a residential unit.
No previous housing withdrawal, or the earlier home has been sold or transferred.
The SPA (or Proclamation of Sale for an auction) is no more than 3 years old at application.
A loan approved by a recognised lender, or a self-financed purchase.

Situation	Withdrawal limit (lower of)
With a housing loan	(Price − approved loan) + 10% of price, or your whole Akaun Sejahtera balance
Self-financed	Price + 10% of price, or your whole Akaun Sejahtera balance

Worked example: RM500,000 home, RM450,000 loan

Work out the cap(RM500,000 − RM450,000) + RM500,000 × 10% = RM50,000 + RM50,000 = RM100,000.
Buyer AAkaun Sejahtera balance RM60,000, below the cap, so the withdrawal is RM60,000.
Buyer BBalance RM130,000, above the cap, so the withdrawal is RM100,000. The rest stays for a later reduce-loan or monthly withdrawal.

The extra 10% is there to help with stamp duty, legal fees and other costs; see how much money you need to buy a house and stamp duty Malaysia 2026.

Joint withdrawal with your spouse: both can apply, each limited to their own Akaun Sejahtera balance, with a marriage certificate.
Second house: only after the home bought with an earlier withdrawal has been sold or transferred, with proof such as the transfer form or new title.
Cash purchases also need a lawyer’s letter and receipts showing at least 20% of the price paid.

When can you withdraw? New, subsale and a combined example

You can only apply for the buy-house withdrawal after the SPA is signed and the loan is approved, which shapes your cash flow:

	New property	Subsale
Booking fee / earnest deposit	Your own cash first	Your own cash first (2%–3%)
10% at SPA	Usually your own cash first	Usually your own cash first
When to apply for Buy House	After SPA and loan approval	After SPA and loan approval
Who EPF pays	Your bank account	Your bank account
Later options	Monthly or reduce-loan withdrawals after handover	Monthly or reduce-loan withdrawals after transfer

Combined example: RM600,000 home with a 90% loan

Down payment and capLoan RM540,000, down payment RM60,000. The buy-house cap is RM60,000 + RM60,000 = RM120,000.
Akaun SejahteraAssume a balance of RM80,000, below the cap, so you can withdraw RM80,000.
Akaun FleksibelAssume RM15,000, which can be withdrawn at any time, giving RM95,000 in total: enough to repay the down payment you fronted and most of the stamp duty and legal fees.

These are illustrative figures; your actual limit is the balance in i-Akaun and what EPF approves. The fee maths is in stamp duty Malaysia 2026.

Using EPF to pay your home loan: monthly vs reduce/redeem

	Monthly instalment withdrawal	Reduce/redeem withdrawal
Age	Under 55 (maximum 54 years 6 months)	Under 55
Citizenship	Malaysian citizen or PR (or a member registered before 1 Aug 1998)	—
Minimum balance	RM600	RM500
Amount	At least RM100 a month, no more than your actual instalment; total capped at the loan or account balance	Lower of loan balance or account balance (minimum RM500)
Frequency	At least 6 months in a row; one house only	At least 1 year between applications
Key document	Loan balance statement within 1 month	Loan statement within 3 months, proof of ownership

For the monthly option, KWSP moves money from Akaun Sejahtera into a special account and pays it out each month; dividends on it go back to Akaun Sejahtera. You can cancel through i-Akaun or form WDW004 and re-apply with new amounts. KWSP may cancel automatically if the loan is settled or the home is sold or auctioned.

From Louis: a lump-sum reduction saves interest straight away, but check your loan for a lock-in penalty first; see flexi vs term loans and lock-in periods. The monthly option suits people who want to keep cash in hand. Ask your bank how each works with your loan.

How to apply for an EPF housing withdrawal: steps and documents

Sign the SPA and get the loan approvedA buy-house withdrawal needs the SPA and the bank’s letter of offer. The loan process is in home loan application in Malaysia.
Prepare documentsIC copy, bank passbook or statement, SPA, loan approval letter; if the approval is over a year old, add the loan agreement, Form 16A or title; for a joint withdrawal, a marriage certificate.
Submit onlineApply in the KWSP i-Akaun app or on the i-Akaun website, or submit form KWSP 9C (AHL) at a branch or by post.
Thumbprint verificationAfter an online application, verify your thumbprint within 14 working days or the application is rejected.
Get paidApproved money is credited to your account at a panel bank, or paid by banker’s cheque if direct credit fails.

Certified copy of your MyKad.
Copy of bank passbook or statement.
SPA (no more than 3 years old).
Loan approval letter.
Joint withdrawal: marriage certificate.
Second home: proof the first home was sold.
Cash purchase: lawyer’s letter and receipts for at least 20% paid.

Common EPF housing withdrawal mistakes

Counting on EPF for the deposit itself: you can only apply after the SPA and loan approval, so the booking and the 10% at signing usually come from your own cash first, and EPF reimburses you afterwards.
Missing the 3-year window: once the SPA is over 3 years old, the buy-house withdrawal is closed; only the loan-repayment withdrawals remain.
Forgetting the age-55 limit: every housing withdrawal must be made before 55.
Draining your safety net: Akaun Persaraan is locked, but Akaun Sejahtera is part of your cushion too. Make sure the instalment fits your budget; see DSR explained.

From Louis: these conditions are from KWSP’s official site as at September 2026. EPF rules change from time to time, so check kwsp.gov.my or i-Akaun again before you apply.

Frequently asked questions

How much can I withdraw from EPF to buy a house?

With a housing loan, you can withdraw the lower of (price minus approved loan, plus 10% of the price) or your whole Akaun Sejahtera balance. For a RM500,000 home with a RM450,000 loan the cap is RM100,000; if your balance is only RM60,000, you get RM60,000.

Which EPF account is used for housing withdrawals?

Akaun Sejahtera, formerly known as Account 2, which receives 15% of each monthly contribution. Akaun Persaraan, which takes 75%, cannot be used for housing withdrawals. Akaun Fleksibel (10%) can be withdrawn at any time for any purpose, with a minimum of RM50, and that cash can also go towards a home.

What are the conditions for an EPF buy-house withdrawal?

You must be under 55, have at least RM500 in Akaun Sejahtera, be buying a residential property with an SPA no more than 3 years old, and either be making your first housing withdrawal or have sold the home bought with an earlier one.

Can I use EPF to pay my monthly home loan instalment?

Yes. The monthly instalment withdrawal needs at least RM600 in Akaun Sejahtera and pays at least RM100 a month, up to your actual instalment, for at least six months. It covers one house only, and you must be a Malaysian citizen or PR under 55.

Can I use EPF to pay off my housing loan in full?

You can apply for a reduce/redeem withdrawal of the lower of your loan balance or Akaun Sejahtera balance, with a minimum of RM500. You must wait at least one year between applications. Check whether your loan has a lock-in penalty before settling early.

Can I use EPF for a second house?

Yes, if you have never made a housing withdrawal, or if the home you bought with an earlier withdrawal has been sold or transferred. You will need proof such as the transfer form or the title in the new owner’s name.

How do I apply for an EPF housing withdrawal online?

After signing the SPA and receiving the loan approval letter, apply through the KWSP i-Akaun app or website, then complete thumbprint verification at an EPF office within 14 working days. You can also submit form KWSP 9C (AHL) at a branch or by post.

Sources & verification

Verified: 2026-09-20. This guide is general information, not legal, tax or financial advice. Rules and rates change — confirm in writing with your lawyer, bank or the relevant authority before you sign.

Stage 2

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Home Loan Application in Malaysia: Every Step from Pre-Approval to DisbursementHome loan application in Malaysia made simple: 8 steps from pre-approval to disbursement, up to 90% margin, 35-year tenure and a RM450k cost example.Home Loan Documents Malaysia: Checklist for Salaried, Self-Employed and Malaysians Working OverseasHome loan documents Malaysia checklist: 3–6 months' payslips and statements for salaried, SSM, 2 years' Form B and 6–12 months' statements for self-employed.DSR in Malaysia, CCRIS and CTOS Explained: Why Home Loans Get RejectedDSR in Malaysia explained: calculated on net income, usually capped at 60%–70%. Plus CCRIS 12-month records, CTOS scores (300–850) and loan rejection fixes.Bank Letter of Offer in Malaysia Explained: Interest Rate, Lock-in and Clauses to CheckBank letter of offer in Malaysia: check the loan amount, SBR plus spread, 2%–5% lock-in penalties, financed MRTA and deadlines, with worked RM examples.Home Loan Interest Rate in Malaysia: How OPR, SBR, BR and BLR WorkHow your home loan interest rate in Malaysia is set in 2026: OPR at 2.75%, SBR vs BR vs BLR, and how a 0.25% change moves a RM400k instalment by about RM60.Flexi Loan vs Term Loan in Malaysia: Semi-Flexi, Lock-In Periods and Islamic FinancingFlexi loan vs term loan in Malaysia: which saves more? RM300 extra a month saves about RM97,900 on RM400k. Plus lock-in fees of 2%–5% and 2025 bank changes.

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Louis Koh

11 years in Malaysian property · Johor Bahru & Kuala Lumpur · English & 中文

I help local buyers and cross-border buyers from Singapore with new and subsale property. Every figure in these guides is sourced; when a rule changes, I update the page and date it.

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