Info : How to Purchase a Property Using Your EPF Withdrawal Money

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Most Malaysians find it difficult to take on the substantial commitment of purchasing their first home, worried with whether they’re able to financially keep up. What with the hefty downpayment required (usually 10% of the sale price) and the subsequent monthly loan repayments, is it any wonder that most urban millennials are still living with their parents?

Now there might be a way for those who’d like a little extra help in financing their home-related expenses: dipping into their Employees Provident Fund (EPF) savings! In particular, Account 2 is what you’d need, which we’ll show you how to claim in the handy step-by-step process below.

First things first, register for i-Akaun

On the EPF website, register for the i-Akaun facility. The fastest way to do so is through any nearby EPF Kiosk or counter. Alternatively, you can also contact the EPF Contact Management Centre at 03-8922 6000. Once registered, you’ll need to activate your account by logging in to your i-Akaun as shown below:

EPF has made it very convenient for home purchasers to apply for withdrawals online rather than doing it manually over the counter. However, for first-time applicants, you’ll still need to present yourself at the counter. Subsequent applications can then be made via the site. Once you’re in, you’ll be taken to a page where you can select the different withdrawal types from the drop-down list (as below):

For first-time homebuyers: Withdrawal to purchase (or build) a house

You’ll first have to fork out the 10% downpayment yourself, payable to the developer for a new property or to the property owner if purchasing a sub-sale house. Only then will you be able to secure a home loan from a bank/financial institution and sign the Sales & Purchase Agreement (SPA). As soon as your SPA is signed, immediately apply to EPF in order to redeem the amount paid for the downpayment.

One can apply to withdraw the difference between the house price stated in the SPA and the housing loan amount (which is typically 90% as most first-time homebuyers have to submit a 10% downpayment), on top of an additional 10% on the price of the house. For example:

SPA price: RM500,000
Loan amount (90%): RM450,000
Amount you can withdraw: (RM500,000 – RM450,000) + (10% x RM500,000) = RM100,000

*Of course, withdrawals are limited to the savings amount in your Account 2.

“What if I am unable to come up with the 10% downpayment in the first place?”

You can explore 100% financing schemes offered by a few banks. One such bank is MBSB, subject to certain conditions. However, applicants under this category can only withdraw up to 10% of the property price. So say your home costs RM500,000, you will be eligible to withdraw RM50,000 only.  Alternatively, you will have to borrow or pool money from your parents, relatives or close friends in order to secure a 90% home loan. You can then pay them back with the monies withdrawn from your Account 2. It is wise to accumulate a sufficient amount of savings first before making your move; you wouldn’t want to be indebted to your loved ones for a long time.


  • EPF Withdrawal Application Form 9C (AHL) (D5)
  • Your Malaysian Identity Card (first time only). Thumbprint verification will be captured for subsequent applications.
  • Bank loan documents (Letter of Loan approval or Loan Facility Agreement) certified by your borrowing bank. Inform the bank officer your intention to withdraw from your Account 2 and the rest will be done for you. You can either collect the documents yourself at the branch or have it mailed to you (usually within two weeks). Hence, make sure to collate your documents a few weeks before.
  • Bank account information. Members are encouraged to bring their bank passbook OR a copy of their bank statement.
  • Sales & Purchase Agreement (SPA)


  • Aged below 55 years at time of application.
  • Have at least RM500 in Account 2.
  • The property in question has to be for residential purposes only i.e bungalow/terrace/semi-detached/apartment/ condominium/studio apartment/serviced apartment/townhouse/SOHO or a shop lot with a residential unit.
  • Can either be a Malaysian or non-Malaysian as long you are an active member and have been making EPF contributions.
  • Your home purchase can be either financed by a home loan granted by banks or via an outright cash purchase. More details here.
  • Withdrawal is only valid for one property (house) at any one time.  Should you wish to apply for a second home, this is only possible once you have disposed of your first property. You must submit the proof of transfer of ownership.
  • The application must be made within 3 YEARS of signing the SPA.

*If it has been over 3 years since your house purchase, don’t worry. You still have the option to apply for withdrawal on a monthly basis to reduce your housing loan (discussed below).

A plus point: EPF is very efficient in processing applications. The whole process takes less than three weeks from the day of application to the point of the money being deposited into your account. Once your application is approved, you will receive an SMS requiring you to be present at any EPF counter for thumbprint verification.

Did you know: EPF withdrawals made for home loan purposes are not subjected to tax!

For those who’ve already purchased a property: Withdrawal to help pay instalments or to reduce housing loan

Let’s say you weren’t aware of the withdrawal option mentioned above, and you have already purchased a property over three years ago. You can still opt to withdraw your EPF money to assist with paying your monthly instalments or to pay down the capital of your home loan to save on interest costs.


1) Same as above for Criteria 1-5
2) The house in question must be your first residential property/house.
3) You must be an owner of the property and have an outstanding home loan with a bank.

The next step will be to obtain the latest loan balance statement from your bank and submit it to EPF. Your bank will take about two weeks to process this.

You may apply to withdraw all of your savings in your Account 2 but this will be paid on a monthly basis, not exceeding the amount of your monthly housing instalment. For example, say your monthly repayment is RM1,000 and you have a total of RM10,000 in your Account 2. RM1,000 will be credited into your personal account or directly to your borrowing bank each month, over a course of ten months.

NOTE: Those who have applied for withdrawals before the three-year mark of their home purchase can request for the EPF money to be paid in a lump sum to help pay down their home loan balance.

Again, the whole process is pretty speedy and takes less than three weeks to complete. An example of the timeline is as below:

An application was made on March 19 and it was submitted for the bank’s verification on home loan details. The bank in question approves said details within a week on March 26. The following day (March 27), EPF proceeded to process the application and it was finalized on April 4. You will be given a period of two weeks to present yourself at EPF counter for thumbprint verification. Once that is done, the money will be disbursed to you within 3-4 days.

To use Account 2, or not to use Account 2

We’d recommend you do your due diligence and go through the detailed explanations available on the EPF website to gain a better understanding before making a decision. Better yet, walk into any EPF office and speak directly to the officer on duty regarding your withdrawing options from Account 2.

Now that you’re aware of additional financing options that bring you one step closer to your dream home, you’d need to also make sure that you’re qualified for a home loan in the first place. Use this comprehensive tool to determine your eligibility across 15 banks – free of charge!

We wish you the best of luck!


credit :loanstreet.com.my

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