How to Withdraw EPF Account 2 for Housing: Step-by-Step Guide

You can use your EPF Account 2 (now called Akaun Sejahtera) to fund a property purchase, reduce your housing loan, or cover monthly mortgage instalments. This guide walks you through exactly who qualifies, what documents you need, and how to apply via the KWSP i-Akaun portal in 2025 and 2026.

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Understanding the Three-Account Structure (Post-May 2024)

Before applying, confirm which account holds your housing withdrawal funds. EPF restructured contributions in May 2024, moving from two accounts to three:

Account	Name	Share of Contributions	Allowed Uses
Account 1	Akaun Persaraan	75%	Retirement only (very restricted)
Account 2	Akaun Sejahtera	15%	Housing, education, health, incapacitation
Account 3	Akaun Fleksibel	10%	Any purpose, anytime

All housing withdrawals come from Account 2 (Akaun Sejahtera). Account 3 withdrawals are unrestricted and do not require a housing purpose. If you were a contributor before May 2024, your existing Account 2 balance was rolled into Akaun Sejahtera at the same time.

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Six Types of EPF Housing Withdrawals

KWSP offers six distinct housing withdrawal categories under Account 2. Choose the one that matches your situation:

1. Buy House — purchase of a completed or under-construction residential property
2. Build House — construction of a new home on land you own
3. Housing Loan Instalment — monthly mortgage repayments (recurring)
4. Reduce or Redeem Housing Loan — lump-sum reduction or full redemption of an existing loan
5. Flexible Housing — topping up EPF balance used as collateral to boost loan eligibility
6. PR1MA Housing — specifically for PR1MA scheme purchasers

This guide focuses on the most common use case: Buy House withdrawal, with notes where other categories differ significantly.

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Am I Eligible?

General conditions (all housing withdrawal types)

• You must be a registered EPF member
• You must be below 55 years of age on the date EPF receives your application
• Your Akaun Sejahtera must have a balance of at least RM500 after the withdrawal
• The property must be a residential property in Malaysia
• You can apply for a maximum of two properties over your lifetime. For a second property withdrawal, you must have sold or disposed of the first property

Additional conditions for Buy House withdrawal

• The property is purchased in your own name, or jointly with a spouse
• The Sales and Purchase Agreement (SPA) or loan documentation must not be more than three years old at the time of application
• You have not already used EPF for the same property (you cannot double-dip using both the Buy House and Loan Instalment categories for the same house at the same time)

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How Much Can You Withdraw?

The withdrawal amount for Buy House is the lower of:

• Your Akaun Sejahtera balance (minus RM500 minimum balance), or
• The difference between the property purchase price and the loan amount, plus 10% of the purchase price

The 10% top-up is designed to cover upfront costs such as legal fees and stamp duty — costs that your loan does not cover. See our related guide on the full cost of buying property in Malaysia for a breakdown of these expenses.

For Loan Instalment withdrawal, the amount is calculated based on the outstanding loan balance divided by the remaining loan tenure, subject to your Akaun Sejahtera balance.

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Documents Required

Prepare these before you begin the online application. Incomplete submissions are the primary reason for delays.

For Buy House withdrawal

Document	Notes
Sales and Purchase Agreement (SPA) or Proclamation of Sale	Must be dated within 3 years of application
Housing Loan Approval Letter	From your bank or financier
Housing Loan Agreement or Form 16A or Title Deed	Only required if the loan has already been disbursed
NRIC (MyKad)	Both sides
Marriage Certificate	Required only if purchasing jointly with spouse

For Loan Instalment withdrawal

Document	Notes
Housing Loan Agreement	Stamped copy
Latest monthly statement or loan account number	Shows outstanding balance
NRIC	Both sides

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Step-by-Step: How to Apply via KWSP i-Akaun

KWSP processes the majority of housing withdrawal applications online via the i-Akaun portal. Walk-in applications at EPF branches are still accepted but are slower. The online route is recommended.

Step 1: Log in to i-Akaun

Go to https://i.kwsp.gov.my and sign in with your EPF member number or MyKad number and password. If you have not registered, click “Register” and follow the MyKad verification process.

Step 2: Navigate to “Withdrawal”

From the dashboard, select Withdrawal, then choose Housing Withdrawal. You will see a list of the six housing withdrawal types. Select Buy House (or the appropriate category for your situation).

Step 3: Check your eligibility and balance

The portal will display your current Akaun Sejahtera balance and run a real-time eligibility check based on your age, existing withdrawals, and minimum balance requirement. Review the estimated withdrawal amount before proceeding.

Step 4: Fill in property and loan details

Enter the property details: address, purchase price, loan amount approved, and the name of your financier. Upload the required documents as clear PDF or image scans (maximum file size is usually 2 MB per file).

Step 5: Submit and complete thumbprint verification

After submitting online, you must complete thumbprint biometric verification (CIJ) in person at any EPF branch or EPF Touch kiosk. This is mandatory. Your application will be automatically rejected if thumbprint verification is not completed within 14 working days of online submission.

Bring your original MyKad for the thumbprint step.

Step 6: Track your application

Log back into i-Akaun to check your application status. You will also receive notifications via the i-Akaun app inbox or by email.

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Processing Time and Payment

Once your complete application (including thumbprint verification) is received, EPF’s standard processing time is approximately 15 to 20 working days. Applications with missing or unclear documents take longer.

Important: EPF does not pay the withdrawal amount into your personal bank account. Funds are disbursed directly to:

• The property developer (for under-construction or new properties)
• The vendor’s solicitor (for sub-sale properties)
• Your housing loan account (for loan reduction or instalment withdrawals)

This protects the integrity of the scheme and ensures the funds are applied to the housing purpose.

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Common Reasons for Rejection

• Thumbprint verification not completed within 14 working days
• SPA or loan documents older than three years
• Property is commercial, not residential
• Member is 55 or above on the application date
• Akaun Sejahtera balance falls below RM500 after the withdrawal
• Applying for a third property (only two properties are allowed)

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Key Takeaways

• EPF housing withdrawals come from Account 2 (Akaun Sejahtera), which holds 15% of your contributions under the post-May 2024 three-account structure
• You are eligible if you are below 55, your balance is at least RM500 above the withdrawal amount, and the property is residential and in Malaysia
• You can use EPF for a maximum of two residential properties over your lifetime
• The withdrawal amount for a house purchase can include up to 10% of the purchase price on top of the gap between price and loan
• Apply online via i-Akaun, then complete mandatory thumbprint verification within 14 working days at any EPF branch
• Payment goes directly to the developer, solicitor, or loan account, not to your personal bank account
• Standard processing time after a complete application is approximately 15 to 20 working days

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Frequently Asked Questions

Can I use EPF Account 2 for a property purchase overseas? No. KWSP housing withdrawals are only permitted for residential properties in Malaysia. Properties outside Malaysia do not qualify under any of the six housing withdrawal categories.

Can I use EPF for both the down payment and monthly instalments? You cannot use both the Buy House and Loan Instalment withdrawals simultaneously for the same property. However, once your Buy House withdrawal is fully processed and closed, you may subsequently apply for Loan Instalment withdrawal for the same property. Check with KWSP on timing and eligibility before applying.

What if I have already used EPF for my first home and want to buy a second property? You may apply for a second property withdrawal, but you must first sell or dispose of your first property. You will need to provide evidence of the disposal (such as a transfer or sale document) as part of your second application. A third property is not eligible.

Does the 10% top-up apply to the loan instalment withdrawal type? No. The 10% of purchase price top-up applies only to the Buy House withdrawal category, where it is intended to cover upfront costs not covered by the loan. Loan Instalment withdrawals are calculated based on your outstanding balance and loan tenure.

Can I withdraw from Akaun Fleksibel (Account 3) for housing instead? Yes. Account 3 funds can be withdrawn for any purpose at any time, including housing. However, Account 3 only holds 10% of your contributions (versus 15% in Akaun Sejahtera), so most members will find Account 2 has a larger balance. You can choose either or both, depending on your needs.

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For the latest rules, forms, and portal access, visit the official KWSP housing withdrawal page at kwsp.gov.my. Rules and limits are reviewed periodically by the EPF board, so always confirm current figures before submitting your application.

To understand how EPF fits into your broader investment picture, read our guide on unit trusts and ASNB in Malaysia.