One of the biggest barriers to buying your first home is saving up for a down payment and additional costs such as stamp duty and legal fees. The government has made the withdrawal of the Sejahtera Account (previously known as Account 2) from the KWSP a permanent policy, allowing members to use their retirement savings for housing purposes more flexibly.


What Is Permitted?

KWSP members can withdraw up to 100% of their Sejahtera Account savings for:

  • Paying the down payment for a home purchase
  • Settling the full or partial balance of an existing housing loan
  • Reducing the monthly instalments of a housing loan


This provides a great deal of flexibility compared to before, where KWSP housing withdrawals were subject to stricter limits and conditions.


Things to Consider Before Withdrawing

Although this facility offers immediate cash access, it means your retirement savings will decrease. Before making a decision, consider:


  • Will the remaining Sejahtera Account balance still be sufficient for emergency/short-term medical needs?
  • Will the reduction in monthly instalments (if that is the purpose of the withdrawal) really save more in loan interest compared to the potential KWSP dividends that could be earned if the savings are kept intact?


Use our KWSP Sejahtera Account Withdrawal Calculator to compare scenarios — with and without withdrawals in terms of monthly installments, total interest amount, and impact on long-term retirement savings, before making a decision.


How to Apply

Applications for KWSP housing withdrawals are made directly through the i-Account KWSP portal or at KWSP branch counters, with supporting documents such as Sales Agreement, loan offer letter from a bank, or current loan balance statement (depending on the purpose of the withdrawal). Please refer to the official KWSP website for the latest list of documents and processing times.


Before applying, estimate first the amount of initial funds and other incidental costs (stamp duty, legal fees) you need using our Stamp Duty Calculator and Legal Fee Calculator, so that you know the exact amount to be withdrawn.