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Withdraw EPF Account 2 for house downpayment, worth it?

I got around RM40k in Akaun 2. Should I use it for house downpayment or leave it to compound? KWSP dividend quite good what.

Anonymous asker ·Asked on 19 days ago ·447 views ·4 answers

[Question] Withdraw EPF Account 2 for house downpayment, worth it?
I got around RM40k in Akaun 2. Should I use it for house downpayment or leave it to compound? KWSP dividend quite good what.

[Answer 1 | FinBro Danial · Best Answer]
Do the maths on opportunity cost first. KWSP has been paying roughly 5 to 6 percent dividend, compounded and effectively risk free, that's hard to beat. If your alternative is renting forever and never buying, then yes, using Akaun 2 to get into a home you'll actually live in makes sense, because property also appreciates and you stop paying rent. BUT if you can scrape the downpayment another way (savings, family), leaving that RM40k in EPF to compound for 20 to 30 years is genuinely powerful, it could grow to several times that by retirement. My rule: use Akaun 2 for a home you NEED and will keep, not for an investment property or to over-stretch into a bigger house than necessary. Don't raid your retirement for lifestyle inflation.

[Answer 2 | Tech Girl Xin Yi]
Remember EPF is your retirement lah, once you take out for house it's gone from the compounding. A lot of Malaysians reach 55 with pathetic EPF because they kept withdrawing. Only touch it if you really cannot get the downpayment any other way. Retirement got no loan.

[Answer 3 | HR Lady Farah]
Also check the withdrawal only can be used for certain things (downpayment, or to reduce loan, or monthly instalment plan). Read the KWSP i-Akaun rules properly, cannot sim1 just cash out for anything. Do it through the official channel, don't kena scam agent that promise "unlock EPF".

[Answer 4 | Uncle Kopitiam Ah Seng]
I used my Akaun 2 for my first home downpayment and no regret, because otherwise I would still be renting and rent is money gone forever. But I made sure I bought within my means, not the max the bank offered. The EPF I lost, I make up by self-contributing extra now that gaji is higher.

Source: ASK https://my.a-sk.org/q/bk3-my-epf-account-2-withdraw-house

This page contains personal experience shared by users about Finance, not professional advice. For important decisions, please consult a qualified professional or official channel.

4 contributors answered

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FinBro Danial Beginner First-hand experience Ex-bank analyst, I talk unit trust, ASNB and stocks without the get-rich-quick nonsense.

Do the maths on opportunity cost first. KWSP has been paying roughly 5 to 6 percent dividend, compounded and effectively risk free, that's hard to beat. If your alternative is renting forever and never buying, then yes, using Akaun 2 to get into a home you'll actually live in makes sense, because property also appreciates and you stop paying rent. BUT if you can scrape the downpayment another way (savings, family), leaving that RM40k in EPF to compound for 20 to 30 years is genuinely powerful, it could grow to several times that by retirement. My rule: use Akaun 2 for a home you NEED and will keep, not for an investment property or to over-stretch into a bigger house than necessary. Don't raid your retirement for lifestyle inflation.

Tech Girl Xin Yi Beginner First-hand experience UX designer, career switcher from accounting, I help you build portfolio from zero lah.

Remember EPF is your retirement lah, once you take out for house it's gone from the compounding. A lot of Malaysians reach 55 with pathetic EPF because they kept withdrawing. Only touch it if you really cannot get the downpayment any other way. Retirement got no loan.

Anonymous contributor Beginner First-hand experience

Also check the withdrawal only can be used for certain things (downpayment, or to reduce loan, or monthly instalment plan). Read the KWSP i-Akaun rules properly, cannot sim1 just cash out for anything. Do it through the official channel, don't kena scam agent that promise "unlock EPF".

Anonymous contributor Beginner First-hand experience

I used my Akaun 2 for my first home downpayment and no regret, because otherwise I would still be renting and rent is money gone forever. But I made sure I bought within my means, not the max the bank offered. The EPF I lost, I make up by self-contributing extra now that gaji is higher.

Withdraw EPF Account 2 for house downpayment, worth it?

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