EPF Withdrawal to Buy or Build a House

Your EPF (KWSP) savings can help you buy or build a house, or ease your home loan after you buy. But that money is also your retirement savings. This guide explains which account is involved, the types of housing withdrawal, who qualifies, how much you can withdraw, documents, the application steps, worked examples and common mistakes.

General information only, not financial advice. Every condition and formula below comes from EPF’s official pages (kwsp.gov.my). The EPF site blocked automated access when we checked, so we used archived copies of those official pages dated October 2025 to March 2026 (each date is given in the source list). Check again with EPF or the KWSP i-Akaun app before you apply, because conditions can change.

1. 1Check the balanceMake sure the Akaun Sejahtera balance is above the required minimum
2. 2SPA and loan approvalPay the down payment from your own savings, and keep the receipt
3. 3Prepare documentsSPA, loan offer letter, proof of relationship if joint; certify the copies
4. 4Apply on i-Akaun or at a counterChoose the housing withdrawal type and upload documents
5. 5Thumbprint verificationIf asked, visit an EPF office within the stated period
6. 6Receive paymentCredited to a panel bank account or paid by banker's cheque

The EPF account structure since May 2024

From 11 May 2024, EPF restructured the accounts of members under 55 from two accounts into three:

Existing balances in Account 1 and Account 2 stayed in Akaun Persaraan and Akaun Sejahtera. Akaun Fleksibel started at zero and grows with new contributions. The option to transfer an initial amount into Akaun Fleksibel was open from 12 May to 31 August 2024 only, and has not been available since 1 September 2024.

Every housing withdrawal in this guide comes from Akaun Sejahtera, as each EPF housing withdrawal page states. Akaun Persaraan is reserved for retirement income. Akaun Fleksibel can be withdrawn for any purpose, but EPF encourages members to use it for emergencies and immediate needs only.

The six types of EPF housing withdrawal

EPF lists six types of housing withdrawal. The four most relevant to an ordinary home buyer are explained in detail below.

EPF also states that savings cannot be withdrawn for house renovation.

Buy-house withdrawal

Who qualifies

According to EPF, you qualify if you:

• are a Malaysian or non-Malaysian (EPF member);
• are below 55 years of age;
• have at least RM500 in Akaun Sejahtera;
• are buying a residential house: bungalow, terrace, semi-detached, apartment, condominium, studio or service apartment, townhouse, SOHO, or a shop lot with a residential unit from a developer in Malaysia;
• have a loan approved by an EPF-recognised lender (banks, LPPSA and other government financing bodies, your employer, licensed cooperatives, licensed insurers), or are buying with cash; and
• have never made a housing withdrawal, or have made one but have sold or disposed of that property.

SOHO buyers must apply manually at an EPF office.

How much you can withdraw

For a joint withdrawal the same formula applies, and each applicant draws only on their own Akaun Sejahtera savings.

Payment comes after you pay

EPF’s article explains that to use Akaun Sejahtera for the usual 10% down payment, you must first pay that 10% from your own savings. The EPF money is then credited to your bank account (if your bank is an EPF panel bank and your identification number matches), or paid by banker’s cheque if the credit fails. So plan your cash flow: EPF is not a source of money on the day you sign the agreement.

Build-house withdrawal

This withdrawal is for members building a house, either on land bought (by you or your spouse) or on land already owned. The basic conditions match the buy-house withdrawal (below 55, RM500 in Akaun Sejahtera, an approved loan or cash). Extra conditions from EPF:

• The Construction Agreement must be dated less than 3 years before the application date.
• The cost of the land is counted if the Land Purchase Agreement is dated within 2 years of the Construction Agreement.
• Proof of approval: the local authority’s approval letter to build, or an approved building plan. For houses outside a municipal council’s area, a confirmation letter from the local authority, the Village Head or the Village Committee, plus a site plan.

Amount: (construction cost − approved loan) + 10% of the construction cost, or all Akaun Sejahtera savings, whichever is lower. With cash: construction cost + 10%, or all savings, whichever is lower.

Reduce or redeem a housing loan

After you buy or build, you can withdraw savings to reduce or settle your own housing loan balance, or help your spouse settle theirs.

• A first or second house, charged to the lender as collateral.
• You are the registered owner (for a self withdrawal).
• The application is made 1 year after your previous reduce/redeem withdrawal.
• Amount: the loan balance, or all Akaun Sejahtera savings, whichever is lower (subject to a minimum of RM500).
• Payment goes straight into your or your spouse’s loan account if the loan is with an EPF panel bank, active, and not a non-performing loan (NPL).

For LPPSA borrowers, EPF accepts the Housing Loan Balance Statement from LPPSA as a document. This withdrawal does not cover a loan for renovation or repairs, an overdraft, a loan from an individual, a third house, or a house overseas.

Monthly instalment withdrawal

This withdrawal pays your monthly home loan instalments from Akaun Sejahtera, for at least six months or until your finances recover.

• A minimum balance of RM600 in Akaun Sejahtera, and your instalments have started.
• At least RM100 a month for six months; the monthly amount (you and any joint applicant) cannot exceed the actual instalment.
• One house only per member. If that house is sold or the loan is settled, you cannot use it for another property.
• Instalments must end before age 55, so the maximum age to apply is 54 years and 6 months.
• It can run at the same time as a reduce/redeem withdrawal.
• The money moves to a Special Account; its dividend is credited to Akaun Sejahtera after the yearly dividend declaration.

Documents to prepare

For every application: Form KWSP 9C (AHL) and checklist, a bank passbook or statement, and Form KWSP 3 (Pindaan) for postal applications or failed thumbprint verification. Non-MyKad holders bring a copy of their identity document with the original. All copies must be certified by an authorised person, with name, designation and official stamp.

For a second house, add proof that the first house was sold or disposed of, for example a Form 14A completed by the Land Office, the title in the new owner’s name with the SPA, or a cancellation letter from the developer.

Terms: an SPA is the Sale and Purchase Agreement between buyer and seller or developer. A DOA (Deed of Assignment) transfers the rights to a house that has no separate title yet.

How to apply

EPF accepts applications through the KWSP i-Akaun app, the i-Akaun (Member) web portal, or manually at a counter or by post.

1. Check your Akaun Sejahtera balance Log in to i-Akaun and make sure the balance is above the minimum (RM500, or RM600 for monthly instalments).
2. Sign the SPA and get the loan approved Pay the down payment from your own savings. Keep the receipt.
3. Prepare documents SPA, loan offer letter, proof of relationship (if joint). Certify the copies.
4. Apply on i-Akaun or at a counter Choose the housing withdrawal type and upload documents. SOHO buyers go to a counter.
5. Thumbprint verification (CIJ) If asked, visit any EPF office with your MyKad within 14 working days. Use an SST if only a thumbprint is needed.
6. Track status and receive payment Check on i-Akaun. Payment goes to a panel bank account or by banker's cheque.

EPF notifies you through the i-Akaun inbox if extra documents are needed.

Worked examples

All figures below are hypothetical, to show how the formula works.

Four hypothetical examples: buying with a loan, a joint withdrawal, a cash purchase, and reducing the loan

Example 1: buying with a loan

Aina buys a developer terrace house priced at RM300,000. Her LPPSA financing is approved at RM270,000. Her Akaun Sejahtera balance is RM45,000.

Formula limit: (RM300,000 − RM270,000) + 10% × RM300,000 = RM30,000 + RM30,000 = RM60,000.

Her savings (RM45,000) are lower than the limit, so she qualifies for RM45,000. Her Akaun Sejahtera will be nearly empty afterwards.

Example 2: a joint withdrawal by husband and wife

Same house, same RM60,000 formula limit. Aina's husband Farid has RM25,000 in Akaun Sejahtera.

Each applicant can use only their own savings, and the eligible amount follows the same formula. They can plan so that part of each person's savings stays in the account. EPF decides the exact amount for each applicant during the application.

Example 3: a cash subsale purchase

Price RM250,000, paid in cash. Akaun Sejahtera balance RM80,000. Formula limit: RM250,000 + 10% = RM275,000. The eligible amount is the lower: RM80,000. A cash buyer must show a receipt for no less than 20% of the price and proof of transfer.

Example 4: reducing the loan every year

Loan balance RM180,000; Akaun Sejahtera balance RM20,000. Eligible amount: RM20,000, paid straight into the loan account. The next application can be made a year later, once new contributions have rebuilt Akaun Sejahtera.

Common mistakes and pitfalls

The impact on retirement savings

Money you withdraw no longer sits in EPF earning dividends. Akaun Persaraan is untouched, but Akaun Sejahtera is also meant for wellbeing in retirement. Ask yourself: if Akaun Sejahtera were empty today, would you still have emergency savings and money for your children’s education?

Timing: the SPA, the loan and EPF

• The SPA cannot be too old. It must be no more than 3 years before the application date. Don’t delay for years.
• A loan approval letter over a year old needs extra documents (the loan agreement or charge form).
• EPF reimburses; it does not advance. Have cash ready for the down payment and legal fees first.
• Thumbprint within 14 working days. Missing it means the application is rejected and you start again.

Others

• Assuming all your EPF savings can be used. Housing withdrawals come from Akaun Sejahtera only.
• Buying a second house without selling the first EPF-financed house.
• Uncertified copies of documents.
• Your bank is not an EPF panel bank, so payment comes by cheque and takes longer.

Quick checklist

• Enough in Akaun Sejahtera (check on i-Akaun).
• SPA signed, no more than 3 years old.
• Loan approval letter (or proof of 20% cash payment).
• Proof of relationship for a joint withdrawal.
• An active bank account in your own name, ideally with an EPF panel bank.
• Time to visit an EPF office for thumbprint verification.

Next step

Before you buy, check your financing eligibility first. Read our guides on checking eligibility before buying your first home, first-home incentives and, if you are a civil servant, how to apply for LPPSA financing for a developer home. Then try our eligibility calculator (estimate only), or register your interest in RumahHQ projects. Registering interest is free and non-binding.