In my case, I do personal loan (10%) to pay for my home financing. Now, I just found out that you can actually fork out money from EPF to do this without taking personal loan now I have 3 loan to think of:

1. Personal Loan this should be non-exist!
2. Home mortgage
3. Credit card

Lesson learnt, I am planning to take the amount from my account 2 and pay personal loan. So I have to question in mind

1. Pay home mortgage principal by EPF account 2 fund (will this lower my monthly commitment?)
2. Pay off personal loan with EPF account 2, which used as 10% home deposit (Can I do this? Well personal loan interest is more expensive than mortgage)

Advice needed

how much is the loan amount and interest rate? that might help to decide.

Personal loan is RM40,000 with interest 6.45%. I have paid RM9,000 til today so left with RM31,000-ish that cost me almost RM450/monthly

My suggestion is use the EPF account 2 to clear off the personal loan, and use that RM450 monthly for saving. You need to cover back the money that has been taken out from EPF. EPF offering 6.xx% dividend which is quite high. Or you might want to clear CC first since the interest rate might be higher than your personal loan.

Oh it's possible? is it under Reduce/Redeem Housing Loan Balance? Can you explain a bit (sorry!)

I have read through some blogs but it is mostly on reducing mortgage principal by this method. I plan to re-finance my home mortgage to make it longer and reduce my monthly too, so this method did not apply to me.

I want to get rid of the credit card too, but there is no scheme like 'reducing card credit loan' Thus, clearing that personal loan is my priority/