Yes, lets spend more...

According to the latest budget of 2008 they have allowed The EPF monthly withdrawal for reducing housing loans.

Read here.

First i saw i tot very good. They allow you to get EPF withdrawal to help you subsidize you home loan.

But then take a look at this sentence.

Second Finance Minister Tan Sri Nor Mohamed Yakcop said the money could then be used to either help offset the housing loan instalment or for the contributor to afford a bigger or more expensive house.

Wah... asking you to spend more...

Take a read at this article to learn about other reviews. this

My suggestion.
If you do get the cash. Here are some things you could do with it, since they bank in directly into your account.

1) Pay of your credit card outstanding first. (Save 18%)
2) Invest into some investment that can get you returns that are more then 6.5% per annum. (Taking into account of the average housing loan rate).

If you are not getting around this rate or wish to get lower rates. you can go to fiscal wise for some help.