Using EPF for Home Purchase in Malaysia
Step-by-step timeline: From checking your balance to getting your keys (8-12 weeks)
Eligibility Criteria
Malaysian Citizen
Must be a Malaysian citizen (not available for permanent residents)
Sufficient Balance
Have sufficient savings in EPF Account 2 (minimum RM 500)
Residential Property
Property must be for residential use (not commercial)
First or Second Home
Allowed for first, second, or third property purchase
3 Ways to Use Your EPF
Choose the option that best suits your financial situation and home buying goals
Down Payment
Use EPF funds to pay the initial 10% down payment
Monthly Installments
Reduce monthly housing loan payments using EPF savings
Full Payment
Pay entire property price if you have sufficient EPF savings
Complete Step-by-Step Timeline
Follow this proven 5-phase process to successfully use your EPF for home purchase (8-12 weeks total)
Preparation
Calculate Eligibility
Determine how much you can withdraw (100% of Account 2 or property price, whichever is lower)
Prepare Documents
Gather IC, employment letter, latest 3 months payslip, EPF statement
Property Selection
Property Search
Find property within your budget (considering EPF + loan)
Property Valuation
Engage bank-approved valuer to assess property value
Book Property
Pay booking fee (typically RM 1,000-5,000) to secure property
Loan Application
Submit Loan Application
Apply for home loan with bank (indicate EPF withdrawal for down payment)
Wait for Approval
Bank processes loan (credit check, document verification)
Receive Loan Offer
Review loan terms, interest rate, and monthly installment amount
EPF Withdrawal Application
Attach Required Documents
Upload Sale & Purchase Agreement, loan approval letter, IC copy
EPF Processing
Wait for EPF to process and approve withdrawal
Final Steps
Sign Sale Agreement
Sign Sale & Purchase Agreement (SPA) at lawyer's office
EPF Funds Released
EPF credits funds directly to developer/seller's lawyer
Complete Transaction
Receive keys and move into your new home!
Required Documents Checklist
Tip: Prepare all documents in PDF format and keep physical copies for quick submission.
Key Benefits of Using EPF
Important Reminders
Retirement Impact
Withdrawing EPF reduces your retirement savings. Consider withdrawing only what you need.
Lost Returns
EPF provides ~5-6% annual dividends. Weigh this against your property appreciation potential.
Repayment Upon Sale
When you sell the property, withdrawn EPF amount + profits must be returned to Account 2.
Common Mistakes to Avoid
❌ Not checking EPF balance first
Always verify your Account 2 balance before committing to a property
❌ Withdrawing 100% for down payment
Consider keeping some EPF for retirement and emergencies
❌ Missing document deadlines
Submit EPF withdrawal application immediately after loan approval
❌ Forgetting about legal fees
Budget for stamp duty, lawyer fees, and valuation costs (~3-4% of property price)
❌ Not comparing loan packages
Shop around for best interest rates before applying
Frequently Asked Questions
Can I use EPF for renovation?
No, EPF withdrawal under the housing scheme can only be used for property purchase or monthly loan installments, not for renovation.
What happens if my loan is rejected?
Your EPF funds remain in Account 2. The withdrawal is only processed after loan approval.
Can I withdraw from both Account 1 and 2?
No, housing withdrawal is only allowed from Account 2. Account 1 is strictly for retirement.
How long does EPF take to release funds?
Typically 14-21 working days after complete documents are submitted and approved.
Do I need to return EPF funds if I sell the property?
Yes, the withdrawn amount plus any profit from the sale must be returned to your Account 2.
Ready to Use Your EPF for Your Dream Home?
Get expert guidance on EPF withdrawals and home loan applications