For 2 room BTO, should i apply HDB or bank loan (100k-130k). If I am taking HDB loan should i apply max loan period 25 years or pay full asap by max out my OA.

Anecdotally, banks generally do not offer loans for 2-room BTOs because of the low resale possibility of the unit (e.g. should a bank foreclose on a 2-room unit, they may not be able to liquidate it satisfactorily to cover their costs)

​

For that matter, because of the relatively low loan amount, there is no harm in sticking to a HDB loan despite the higher interest rate. Repayment terms are much more lenient and you are most likely setting aside the same repayment amount every month (since HDB loan rates have not changed in 22 years).

​

Do note that if you are taking a HDB loan, you will most likely be depleting your OA first, in order to lower the loan amount. Hope this helps!

Ohmyhome talks about this and more in our HDB vs Bank Loan guide: https://ohmyhome.com/en-sg/blog/hdb-vs-bank-loa...

​