Using EPF to Buy a House in Malaysia 2026: Akaun Sejahtera Guide
Property Lab editorial teamPublished Updated 7 min read
Contents
Can you use EPF to buy a house in Malaysia? Yes. You can withdraw from your Akaun Sejahtera (the former Account 2) to buy or build up to two homes, to reduce or settle your home loan, or to pay monthly instalments. To buy with a loan, you can take the difference between the price and the loan, plus 10% of the price, or your whole Akaun Sejahtera balance, whichever is lower.
Buy with a loan: (price − loan) + 10% of price, capped at your Akaun Sejahtera balance. You must be under 55 with at least RM500 in Akaun Sejahtera.
Already have a loan? You can withdraw to reduce it (once a year) or to pay monthly instalments.
Which EPF account can you use for a house?
Since 11 May 2024, EPF contributions are split across three accounts instead of two:
- Akaun Persaraan (was Account 1)75%
- Akaun Sejahtera (was Account 2)15%
- Akaun Fleksibel (new, Account 3)10%
Share of each new monthly contribution.
Housing withdrawals come from Akaun Sejahtera. Akaun Fleksibel can be withdrawn at any time, with a minimum of RM50, but it is not a housing scheme and receives a smaller share (10%) of each contribution.
EPF offers six housing options: buy a house, build a house, monthly loan instalments, reduce or redeem a loan, Flexible Housing Withdrawal, and PR1MA housing. This guide covers the four most people use.
How much EPF can you withdraw to buy a house?
You can apply if you are under 55, have at least RM500 in Akaun Sejahtera, are buying a residential property in Malaysia with an approved loan or your own money, and have not made a housing withdrawal before (or have sold the home you used it for). The unit can be bought from a developer, subsale or at auction.
| How you pay | Maximum withdrawal |
|---|---|
| With a housing loan | (Price − loan) + 10% of price |
| Self-financed | Price + 10% |
| In both cases | Capped at your Akaun Sejahtera balance |
Per EPF's buy house withdrawal page. You get whichever is lower: the formula or your entire Akaun Sejahtera savings. Residential property includes houses, apartments, condos, serviced apartments, SOHO and shop lots with a residential unit from a developer.
Here is what that means for a buyer taking a 90% loan:
| Home price (RM) | Formula cap | Balance 30,000 | Balance 80,000 | Balance 150,000 |
|---|---|---|---|---|
| 300,000 | 60,000 | 30,000 | 60,000 | 60,000 |
| 500,000 | 100,000 | 30,000 | 80,000 | 100,000 |
| 800,000 | 160,000 | 30,000 | 80,000 | 150,000 |
Illustrative withdrawal in RM, assuming a 90% loan. The formula cap is the 10% down payment plus another 10% of the price. Your actual amount depends on EPF's approval.
Up to two homes: EPF can help finance up to two residential properties. If you used EPF for your first home, you must sell or dispose of it before applying for the second. A spouse or family member can make a joint withdrawal; each person's withdrawal is limited to their own Akaun Sejahtera savings.
Can you use EPF to pay your home loan?
Yes, in two ways. You can use both at the same time.
| Reduce / redeem loan | Monthly instalments | |
|---|---|---|
| Age | Below 55 | Below 55 (apply by 54½) |
| Minimum balance | RM500 | RM600 |
| Amount | Loan balance or savings | Loan balance or savings |
| Minimum | RM500 | RM100 a month, 6 months |
| How often | Once a year | Monthly, until it runs out |
| Homes covered | First or second home | One home only |
Per EPF's reduce/redeem and monthly instalment pages. "Loan balance or savings" means whichever is lower: the outstanding loan or your Akaun Sejahtera balance. Monthly payments cannot exceed your actual instalment and must end before you turn 55.
Reduce or redeem: you must be the registered owner (or helping your spouse), and the home must be charged to the lender. It cannot be used for renovation loans, overdrafts, loans from individuals, a third house or a house overseas.
Monthly instalments: the amount is moved to a special account and paid towards your instalment each month, for at least six months. Dividends on it are still credited to your Akaun Sejahtera. As an illustration, RM30,000 would cover a RM2,074 monthly instalment (a RM450,000 loan at 4.3% over 35 years) for about 14 months.
What is the Flexible Housing Withdrawal?
This option can help you qualify for a bigger loan. You set aside part of your Akaun Sejahtera in a separate Flexible Housing Withdrawal account. The bank then counts your monthly EPF contribution as part of your income when it checks your loan eligibility.
- For Malaysians and permanent residents below 54 with a housing loan from an EPF-approved lender.
- Applied through the bank, together with a buy/build withdrawal or a reduce/redeem withdrawal.
- The money stays yours and is not assigned to the bank. It still earns dividends, credited to Akaun Sejahtera.
- Minimum savings period of one year, for one house at a time. The set-aside savings cannot be used for other housing, education, health or age-50 withdrawals, and are released at 55 (or on death, incapacity, leaving the country or pensionable employment).
If your income is borderline for the loan you need, ask your bank whether this option would help.
Documents and how to apply
You can apply through the KWSP i-Akaun app or at an EPF office. For a buy house withdrawal, EPF lists:
- Form KWSP 9C (AHL) and its checklist.
- Your sale and purchase agreement, or the proclamation of sale for an auction unit, dated within three years of your application.
- Your bank passbook or a copy of your bank statement.
- Identification documents, with originals for checking (non-MyKad holders).
- Form KWSP 3 (Pindaan) if you apply by post or thumbprint verification fails.
For loan reduction or instalment withdrawals, you also need a housing loan outstanding balance statement from your lender (or LPPSA), dated within the period EPF specifies. SOHO buyers must apply manually at an EPF office.
Should you use your EPF for a house?
Using EPF can make a home affordable sooner, but it is your retirement money. A few points to weigh:
- Money you withdraw no longer grows in your EPF account, unless it sits in the instalment or flexible accounts described above.
- Keep an emergency fund outside EPF. Akaun Fleksibel can help, but it is smaller.
- Check your loan first. Your bank's approval and your debt service ratio decide the loan, and the EPF withdrawal covers the rest.
- The second-home rule matters: if you use EPF for your first home, you will need to sell it before using EPF for another.
FAQ
How much EPF can I withdraw to buy a house?
With a loan: the difference between the price and the loan, plus 10% of the price, or your entire Akaun Sejahtera savings, whichever is lower. Self-financed: the price plus 10%, or your Akaun Sejahtera savings, whichever is lower.
Can I use EPF Account 2 to buy a house?
Yes. Account 2 is now called Akaun Sejahtera and is the account used for housing withdrawals. You must be under 55 and have at least RM500 in it.
Can I use EPF to pay my monthly housing loan?
Yes. The monthly instalment withdrawal needs at least RM600 in Akaun Sejahtera, an active loan with instalments already started, and covers one home. Payments are at least RM100 a month for six months and cannot exceed your instalment.
Can I use EPF for a second house?
Yes, EPF can help with up to two homes, but if you used EPF for your first home you must sell or dispose of it before applying for the second.
References
- EPF (KWSP): Buy house withdrawalUsed for eligibility, the withdrawal formulas, the two-home rule, residential property types and documents.
- EPF (KWSP): Housing loan monthly instalment withdrawalUsed for the RM600 minimum, RM100 a month for six months, the one-home limit, the special account and the age 54½ limit.
- EPF (KWSP): Reduce/redeem housing loan withdrawalUsed for eligibility, the RM500 minimum, the once-a-year rule and the loans that are not eligible.
- EPF (KWSP): Flexible Housing WithdrawalUsed for how it raises loan eligibility, who can apply and the account rules.
- EPF (KWSP): Housing withdrawal optionsUsed for the list of six housing withdrawal options.
- EPF (KWSP): Akaun Fleksibel withdrawalUsed for withdrawals at any time with a RM50 minimum.
- RinggitPlus: A guide to EPF accounts and what's new in 2026 (April 2026)Used for the 75/15/10 split and the 11 May 2024 restructuring.
EPF rules change. Check the latest conditions on kwsp.gov.my or at an EPF office before you apply.
This article is general information only, not financial advice. Examples are illustrative and based on the assumptions stated.
General information only, not legal, tax or investment advice. Rules and rates change; check the official source linked below before you act.
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