How to Use EPF Account 2 to Buy a House in Malaysia

Buying a house in Malaysia can feel difficult, especially with rising living costs and higher loan requirements. Many first-time buyers struggle to prepare enough cash for the down payment, legal fees, and other upfront costs. This is why the EPF Account 2 housing withdrawal has become one of the most important financial tools for Malaysians.

EPF allows members to use part of their retirement savings to buy a house, build a house, reduce their existing home loan, or pay monthly instalments. Understanding how EPF Account 2 housing withdrawal works can make property ownership much more achievable.

What Is EPF Account 2 and How It Helps Homebuyers

EPF (Employees Provident Fund) divides your contributions into Account 1 for retirement and Account 2 for essential life needs such as housing, medical, and education. The portion in Account 2 can be used under the EPF housing withdrawal Malaysia scheme, which makes buying a house easier by reducing the upfront financial burden.

Account 2 typically holds 30 percent of your total contributions, and this amount grows over time through monthly payments and annual dividends. Many Malaysians rely on their EPF Account 2 withdrawal as a form of financial support when purchasing their first property.

Types of EPF Account 2 Housing Withdrawals

EPF offers several withdrawal options depending on your homeownership journey. These schemes are designed to support both new buyers and existing homeowners.

1. Withdrawal to Buy or Build a House

This scheme is the most popular. It allows you to use your EPF Account 2 to buy a new property, a subsale home, or build a house on your land.

You can apply:

• Individually
• Jointly with spouse, parents, children, or siblings

Many families combine their EPF savings to increase the total withdrawal amount and reduce cash commitment.

2. Withdrawal to Reduce Housing Loan Principal

If you already have a housing loan, EPF allows you to withdraw money from your Account 2 to reduce your outstanding loan balance.

This withdrawal can help:

• Lower your loan principal
• Reduce your monthly instalment
• Shorten your loan tenure
• Reduce long-term interest

You can apply once every three years.

3. Monthly Instalment Withdrawal

EPF Account 2 can also be used to help pay monthly housing loan instalments. This is useful for owners needing temporary financial relief.

EPF allows a fixed monthly amount for a set period, usually up to 12 months, with the option to reapply after the period ends.

Eligibility for EPF Account 2 Housing Withdrawal

To qualify for the epf account 2 housing schemes, you must meet several conditions. EPF uses these rules to ensure proper use of retirement savings.

• You must be an active EPF member.
• You must have sufficient balance in Account 2.
• The property must be a residential property in Malaysia.
• You must provide a stamped Sale and Purchase Agreement.
• You must show loan approval documents for loan-related withdrawals.
• Joint applicants must provide proof of relationship.

How Much Can You Withdraw from EPF Account 2

The amount you can withdraw depends on the type of application.

Buying a House

EPF allows you to withdraw the difference between the house price and loan amount, or all available savings in Account 2, whichever is lower.

Example:

• House price: RM400,000
• Loan amount: RM360,000
• Difference: RM40,000
• Account 2 balance: RM50,000
• Maximum withdrawal: RM40,000

Reducing Home Loan

You may withdraw up to your Account 2 balance or the outstanding loan amount. EPF will approve the lower value.

Paying Monthly Instalments

EPF permits a fixed monthly withdrawal for a set period to assist with loan payments.

Documents Required for EPF Account 2 Housing Application

Preparing complete documents is crucial to avoid delays. EPF typically requires:

• NRIC
• Stamped Sale and Purchase Agreement
• Loan approval letter or bank loan statement
• Developer billing (for under-construction homes)
• Proof of joint ownership or relationship
• Bank account details for payment

Clear scans or photos help speed up approval.

How to Apply for EPF Account 2 Housing Withdrawal

You can apply online through the EPF i-Akaun system or visit any EPF branch.

1. Apply Through EPF i-Akaun (Recommended)

This is the fastest and easiest method.

• Log in to your EPF i-Akaun.
• Go to the Withdrawal section and select Housing Withdrawal.
• Choose the type of withdrawal: buying, loan reduction, or monthly instalments.
• Upload all required documents.
• Review your application and submit.

Approved payments will be transferred to your bank account, the developer, or the loan provider depending on the withdrawal type.

2. Apply at an EPF Branch

For walk-in applications, EPF recommends booking an appointment using Janji Temu Online. Officers will help verify your documents and guide you through the process.

Frequently Asked Questions

Can I use EPF Account 1 to buy a house?

No. Only Account 2 is allowed for housing purposes.

Can I use EPF Account 2 to buy a second home?

Yes, but only if the first home is sold or the first home loan is fully settled.

How long does EPF approval take?

Most approvals take 7 to 14 working days when documents are complete.

Can I withdraw EPF for commercial property?

No. EPF housing withdrawal is only for residential properties.

Advantages and Risks of Using EPF Account 2

Using EPF Account 2 has strong advantages for homebuyers. It reduces the need for large upfront cash and helps lower long-term loan burdens. Many first-time buyers rely on the epf account 2 housing withdrawal malaysia scheme to secure financing.

However, the main downside is that withdrawing money reduces your retirement savings. Since EPF dividends compound yearly, early withdrawals may affect your long-term retirement fund. It is important to weigh your current needs versus your future financial security.

Is EPF Account 2 Withdrawal a Good Choice?

For many Malaysians, the answer is yes. The epf account 2 housing withdrawal makes homeownership more accessible and reduces financial pressure during the buying process. It allows buyers to move forward without waiting many years to save for a down payment. However, the decision should be made carefully based on your financial goals, your EPF balance, and the importance of retirement planning.