An HDB bridging financial loan is a short-expression funding solution designed to help homeowners in Singapore handle the monetary gap in between promoting their existing HDB flat and purchasing a brand new house. This bank loan gives short term money, usually for a duration of nearly 6 months, to protect the downpayment and various First charges of the new home before the sale proceeds within the outdated flat are acquired. Bridging loans are usually offered by banking companies and so are secured in opposition to the existing property. They ordinarily feature increased curiosity rates than conventional household loans, frequently starting from three% to 5% per annum or simply a amount pegged to SORA. The appliance procedure requires evidence of sale for The present property, which include an alternative to buy, and documentation for the new residence. Repayment in the mortgage is predicted when the sale of the existing flat is done plus the proceeds are acquired. Some banks, like UOB and Typical Chartered, supply bridging loan selections, often with preferential prices for patrons also using a new household mortgage with them. It is vital to note that a bridging loan differs in the HDB's Increased Contra Facility, which can be a plan specifically for those acquiring and check here promoting HDB flats at the same time.