How to Use EPF Account 2 to Pay Monthly Mortgage (Installment Withdrawal)

You can use your EPF Akaun Sejahtera (formerly Account 2) to pay your monthly home loan instalments directly, reducing the cash you need out-of-pocket each month. The arrangement is called the Housing Loan Instalment Withdrawal and EPF processes it on a monthly or periodic basis for the duration you choose.

This guide walks through exactly who qualifies, how much you can withdraw, what documents you need, and the step-by-step application process.

What changed in 2024: Account 2 is now Akaun Sejahtera

In May 2024, EPF restructured member accounts from two accounts into three. What was previously called “Account 2” is now Akaun Sejahtera, and new monthly contributions are allocated at a 75:15:10 ratio across the three accounts:

Account	Old name	Share of new contributions	Purpose
Akaun Persaraan	Account 1	75%	Retirement only
Akaun Sejahtera	Account 2	15%	Pre-retirement: housing, education, health, Hajj
Akaun Fleksibel	Account 3 (new)	10%	Emergency cash, anytime withdrawal

All housing withdrawals, including the monthly instalment facility, draw from Akaun Sejahtera. If you applied before May 2024, your existing arrangement continues; new applications reference Akaun Sejahtera.

Who is eligible for the monthly instalment withdrawal?

EPF sets out four core eligibility conditions (source: KWSP, 2024):

Malaysian EPF member with sufficient savings in Akaun Sejahtera.
Outstanding housing loan with a lender approved by EPF. This covers most commercial banks, Bank Simpanan Nasional, and government lenders such as LPPSA.
You are both buyer and borrower on the property. Joint purchases are allowed, but each applicant must be both a named buyer and a named borrower.
One active property only. The withdrawal is limited to one house per member. If you sell the property or fully settle the loan, you cannot redirect the withdrawal to a second property.

What about Non-Performing Loans (NPL)?

If your loan has been classified NPL, you can still apply. EPF requires that monthly disbursements be made via banker’s cheque payable directly to the loan provider rather than to your bank account. This is an important safeguard, and it means even members in financial difficulty retain access to the facility.

How much can you withdraw each month?

The withdrawal each month is capped at the actual monthly instalment amount stated in your loan agreement. You cannot withdraw more than the instalment, even if your Akaun Sejahtera balance is larger. The minimum payment that EPF processes is RM100 per month.

The withdrawal period must be at least six (6) months. There is no fixed maximum duration stated in the guidelines; payments continue until your application period ends, your Akaun Sejahtera balance runs out, or you cancel the arrangement.

Parameter	Rule
Maximum per month	Actual monthly instalment (cannot exceed it)
Minimum per month	RM100
Minimum withdrawal period	6 months
Source account	Akaun Sejahtera (old Account 2)
Properties covered	1 property per member
NPL loans	Allowed, via banker’s cheque to lender

Documents you need to prepare

EPF requires a combination of identity and loan documents. Gather these before you apply:

Mandatory for all applicants:

Copy of MyKad (both sides). Non-MyKad holders must bring the original for officer verification.
Housing Loan Outstanding Balance Statement from your lender. The statement date must be within 1 month of your EPF application date (or 3 months if your loan is from LPPSA).
Loan agreement or letter of offer (some EPF branches request this for first-time applicants).

If you have a joint loan applicant:

Joint applicant’s MyKad copy.
Joint applicant’s EPF membership details if they are also withdrawing.

For NPL cases:

Letter from your bank confirming NPL classification.
Banker’s cheque arrangement confirmation.

All document copies must be certified by an authorised person (complete with name, designation, and official stamp), except where EPF officers certify on the spot.

Step-by-step: how to apply

Option A: Online via i-Akaun (fastest)

Log in to i-Akaun Member at www.kwsp.gov.my.
Go to Pengeluaran (Withdrawal) and select Pengeluaran Perumahan (Housing Withdrawal).
Choose Pengeluaran Ansuran Pinjaman Perumahan (Housing Loan Instalment Withdrawal).
Fill in your loan details: lender name, loan account number, and monthly instalment amount.
Upload scanned copies of required documents.
Review and submit. EPF will send a confirmation SMS or email.

Online applications are processed faster and do not require a branch visit unless EPF requests additional verification.

Option B: Walk-in at an EPF branch

Download and complete Form KWSP 9C(AHL) from the EPF website before you visit.
Bring original MyKad plus all required documents.
Submit at the Housing Withdrawal counter.
EPF issues a processing acknowledgement slip.

Processing typically takes 7 to 14 working days from the date EPF receives a complete application. The first disbursement goes directly to your bank loan account (or via banker’s cheque for NPL cases).

Can you combine this with other EPF housing withdrawals?

Yes. EPF explicitly permits you to run the Monthly Instalment Withdrawal alongside the Reduce/Redeem Housing Loan Balance Withdrawal at the same time. This means you can make a lump-sum drawdown to cut the outstanding principal while also receiving monthly payments toward your regular instalment.

For context, the full range of EPF housing withdrawals available from Akaun Sejahtera includes:

Buy House Withdrawal (lump sum, for down payment or purchase price)
Build House Withdrawal (for self-construction)
Reduce/Redeem Loan Withdrawal (lump sum to shrink or clear the loan)
Housing Loan Instalment Withdrawal (monthly, this guide)
PR1MA Housing Withdrawal (specific to PR1MA scheme buyers)
Flexible Housing Withdrawal (for members aged 55 and above)

See EPF housing withdrawal types for a full comparison of all six schemes.

Things to watch out for

Your Akaun Sejahtera balance shrinks. Every monthly withdrawal reduces the savings EPF holds for your pre-retirement needs. If your employment income is lower or you take career breaks, the balance may not be replenished fast enough. Review your Akaun Sejahtera balance annually.

The 15% contribution share is smaller than before. Under the old two-account structure, 30% of new contributions went to Account 2. Under the 2024 restructuring, only 15% flows to Akaun Sejahtera. Members who rely heavily on this account for housing, health, and education withdrawals should plan their balance usage carefully.

Withdrawal stops if balance is exhausted. EPF does not top up from Akaun Persaraan. If Akaun Sejahtera runs to zero, monthly payments stop and you revert to paying the instalment from your own cash.

Bank processing cut-offs matter. EPF releases funds on a monthly cycle. Confirm with your bank that EPF disbursements are credited before your loan instalment due date to avoid late payment charges.

For free, independent financial counselling if your loan is under stress, contact AKPK (Agensi Kaunseling dan Pengurusan Kredit) at 1800-88-2575. AKPK’s Debt Management Programme is a separate, no-cost restructuring path that works independently of EPF.

Key takeaways

EPF’s Housing Loan Instalment Withdrawal lets you draw from Akaun Sejahtera (old Account 2) each month to cover your home loan instalment.
Minimum: RM100 per month for at least 6 months. Maximum: the actual monthly instalment amount.
You must be both buyer and borrower, and the arrangement covers one property only.
Members with Non-Performing Loans can still apply; EPF pays the bank directly via banker’s cheque.
The critical document is a Housing Loan Outstanding Balance Statement dated within 1 month (or 3 months for LPPSA loans) of your application.
Apply online via i-Akaun for the fastest processing, or in person with Form KWSP 9C(AHL) at any EPF branch.
Since the May 2024 restructuring, new contributions to Akaun Sejahtera are only 15% of total EPF contributions. Monitor your balance regularly.

Frequently asked questions

Q: Can I use EPF Account 2 (Akaun Sejahtera) to pay a mortgage on a second property?

No. EPF limits the Housing Loan Instalment Withdrawal to one property per member. If you have sold your first property or fully settled that loan, you are not eligible to redirect the withdrawal to a different property.

Q: How long does EPF take to process the first payment?

EPF typically takes 7 to 14 working days from the date it receives a complete application. Your first monthly disbursement to the bank begins after approval, so apply at least two to three weeks before your intended start month.

Q: What happens when my Akaun Sejahtera runs out?

EPF stops the monthly withdrawal automatically. You will receive a notification, and you will need to resume paying the full instalment from your own funds. EPF does not transfer from Akaun Persaraan to cover the shortfall.

Q: Can both joint borrowers each withdraw from their own EPF accounts for the same loan?

Yes. Each borrower may apply independently. The combined monthly withdrawal from both members cannot exceed the actual monthly instalment. Each applicant applies separately using their own i-Akaun login.

Q: Is this the same as the AKPK Debt Management Programme?

No, they are separate programmes. The EPF Housing Loan Instalment Withdrawal is a self-funded drawdown of your own savings to pay a current, performing loan. AKPK’s Debt Management Programme is a free debt restructuring service for members who cannot meet their financial obligations and want to negotiate directly with creditors. You can use both independently. Learn more at AKPK’s official site.

Information in this guide is based on official EPF (KWSP) guidelines published at kwsp.gov.my and reflects the account structure effective May 2024. EPF rules may be updated; verify current conditions directly with EPF before applying.

Educational content only, not financial advice. Verify current figures with official sources.