Best Malaysia PropertiesYes, you can use your EPF (KWSP) savings to buy a house in Malaysia, but only from Akaun Sejahtera (the old Account 2) and Akaun Fleksibel, not from Akaun Persaraan. For a purchase with a home loan, KWSP lets you withdraw the gap between the price and your loan plus 10% of the price, capped at your Akaun Sejahtera balance. You can also use Akaun Sejahtera later to reduce your loan or help pay monthly instalments.
How your EPF savings are split (as of 2026)
Since 11 May 2024, every new contribution is split three ways:
| Account | Share of new contributions | Can it be used for a house? |
|---|---|---|
| Akaun Persaraan (formerly Account 1) | 75% | No. Locked until age 55 |
| Akaun Sejahtera (formerly Account 2) | 15% | Yes, through housing withdrawals with conditions |
| Akaun Fleksibel (new) | 10% | Yes, for any purpose, at any time |
The change matters for buyers. Akaun Sejahtera used to receive 30% of contributions. It now gets 15%, so balances built up since May 2024 grow about half as fast. Younger buyers who started working after the restructuring will usually have less in Akaun Sejahtera than an older colleague did at the same age.
Akaun Fleksibel: the simplest option
Akaun Fleksibel can be withdrawn at any time and for any reason, with a minimum withdrawal of RM50 and no supporting documents, through the i-Akaun app or a KWSP branch. The money goes into your bank account. That makes it useful for a booking fee, legal fees or stamp duty, which a housing withdrawal from Akaun Sejahtera does not cover directly. Keep in mind that every ringgit taken out stops earning dividends for your retirement.
The four Akaun Sejahtera housing withdrawals
KWSP's published conditions describe four housing-related withdrawals.
- Buy or build a house. A one-off withdrawal towards the purchase.
- Reduce or redeem a housing loan. Paid straight into your loan account to bring the balance down.
- Monthly instalment withdrawal. Regular payments from Akaun Sejahtera towards your instalments.
- Flexible housing withdrawal. Sets aside part of your Akaun Sejahtera so the bank can count your future monthly contributions towards your loan, which may help you qualify for a larger loan. It must be applied for together with a buy/build or reduce-loan withdrawal.
1. Buy or build a house: how much
- With a home loan: (price − approved loan) + 10% of the price, or your whole Akaun Sejahtera balance, whichever is lower.
- Without a loan: the price + 10%, or your whole Akaun Sejahtera balance, whichever is lower.
- You need at least RM500 in Akaun Sejahtera.
Worked example. You buy a RM500,000 condo with a 90% loan of RM450,000.
| Step | Amount |
|---|---|
| Price − loan | RM50,000 |
| Plus 10% of price | RM50,000 |
| Maximum under the formula | RM100,000 |
| If your Akaun Sejahtera holds RM60,000 | You can withdraw RM60,000 |
| If it holds RM150,000 | You can withdraw RM100,000 |
The extra 10% roughly reflects the costs around a purchase, such as legal fees and stamp duty. Our full cost of buying a home guide lists what those costs are.
2. Reduce or redeem your housing loan
You can withdraw up to your outstanding loan balance or your Akaun Sejahtera balance, whichever is lower, with at least RM500 in the account. KWSP pays the money straight to your loan account. The conditions allow this once a year, for your first or second house only. The loan must be with a bank on KWSP's panel and must be active, not in default. It cannot be used for renovation loans, overdrafts or personal loans.
3. Monthly instalment withdrawal
This needs at least RM600 in Akaun Sejahtera, and your loan repayments must already have started. The minimum is RM100 a month for at least six months, and the amount cannot exceed your actual instalment. It covers one house and can run alongside the reduce-loan option.
Who qualifies
Based on KWSP's published conditions:
- Age: members under 55. The flexible housing withdrawal has a lower age limit, so check it if you are in your fifties.
- Property: a residential property in Malaysia, including terraces, bungalows, apartments, condos and shophouses with a residential unit. SOHO units require a manual application.
- How you buy: from a developer, on the subsale market or at auction.
- How many times: you qualify if you have never made a housing withdrawal, or if you have sold the house you used it for. A second application needs proof of that sale.
- Timing: the SPA (or Proclamation of Sale for an auction) must be dated within three years of your application.
- Joint withdrawals: family members can combine their savings for one house, including a spouse, parents, parents-in-law, children and siblings, with proof of relationship.
- Documents: typically the KWSP application form, your IC, the SPA, the loan offer letter and a bank statement. Buyers paying without a loan also need a lawyer's letter and proof of having paid part of the price.
Rules change from time to time. Before you sign, check the current conditions on kwsp.gov.my or in i-Akaun.
How EPF fits into your purchase
An EPF withdrawal comes after you sign, so it does not replace the cash you need at the start. You still usually pay the booking fee and the 10% down payment when you sign the SPA, along with legal fees and stamp duty. You may be able to recover part of that from Akaun Sejahtera afterwards, subject to approval. Plan your cash flow as if the EPF money will arrive later.
Your loan size, on the other hand, depends on your income and debts. See our home loan and DSR guide for worked examples by salary. If you are shopping for a first home, our new launches page, best condos ranking and interactive map show prices and scores by area.
Things to weigh up
- Retirement savings: money taken out of Akaun Sejahtera stops compounding for retirement. KWSP's 2026 framework sets a basic savings benchmark of RM390,000 at 55.
- Timing: you may have to wait weeks for processing, so do not plan to pay the developer or seller with EPF money on a fixed date.
- Instalments still matter most: a one-off withdrawal helps at the start, but you will pay the monthly instalment for up to 35 years, so check that it fits your budget without relying on future EPF withdrawals.
This guide explains the published rules. It is not financial advice, so check your own position with KWSP and your bank.