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Should I do EPF voluntary top-up (i-Saraan / Self Contribution) in my late 20s or invest myself?
I'm 28, been reading about topping up my EPF voluntarily on top of the normal deduction, s…
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Should I withdraw EPF Account 2 for house downpayment?
Buying first house, short of downpayment. Can withdraw from EPF Account 2 for property. But part of me feel like dont want to touch retirement money. Worth it or better find other way? How you all decided?
Anonymous asker ·Asked on 1 months ago ·261 views ·4 answers
This page contains personal experience shared by users about Finance, not professional advice. For important decisions, please consult a qualified professional or official channel.
Best Answer
PTPTN Warrior Nadia Beginner First-hand experience Cleared my PTPTN in 4 years, I share budgeting and the 15% discount trick, boleh buat.
I withdrew from EPF for my first home downpayment and I dont regret it, but with a clear head about the tradeoff. EPF Account 2 is specifically allowed for this purpose, and buying property earlier means you start building an appreciating asset and stop paying rent. That said, the money you take out loses years of compounding at the EPF dividend rate (historically 5-6%), so it is not free. My rule was: only withdraw the MINIMUM needed to hit the downpayment plus legal fees, not empty the account. I kept the rest compounding. Also I made sure my home loan instalment was comfortable, not stretching me thin, because a house you cannot afford defeats the purpose. If your only way into home ownership is EPF, and the property is for own stay in a decent location, I think it is reasonable. If it is for a speculative investment property, I would not touch retirement money. Think long term, run the numbers both ways.
Anonymous contributor Beginner First-hand experience
Whatever you withdraw, top it back up later when you can afford, through voluntary contribution (i-Saraan or self contribution). I did this, treated the withdrawal like a loan to myself and topped back over a few years once cashflow improved. That way your retirement doesnt permanently lose out.
Investor Auntie Grace Beginner First-hand experience Retired accountant now dividend investor, I talk REIT, ASNB and safe passive income lah.
Remember EPF dividend is basically guaranteed and tax free, it is one of the best low risk returns you can get in Malaysia. Every RM10k you pull out now could be worth RM30k+ by retirement with compounding. So dont withdraw casually. But a roof over your head with a fixed loan while rent keeps rising is also a form of security. It is genuinely a personal balance, no universal right answer.
Anonymous contributor Beginner First-hand experience
Before withdrawing, exhaust cheaper options. Some banks offer higher margin of finance (90-95%) so you need less cash upfront. First time buyer schemes and stamp duty exemptions also reduce the cash you need. I managed to buy with a smaller EPF withdrawal by getting a 90% loan and using the stamp duty waiver. Explore all the government first home incentives before raiding your EPF.
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