An HDB bridging loan is a short-expression funding selection meant to assist homeowners in Singapore deal with the economical hole in between offering their current HDB flat and obtaining a new home. This bank loan supplies momentary resources, typically to get a period of around six months, to protect the downpayment and other initial expenses of the new home before the sale proceeds in the previous flat are obtained. Bridging loans are typically provided by banking institutions and therefore are secured in opposition to the present house. They generally feature increased fascination costs than common property loans, usually ranging from 3% to 5% for every annum or a rate pegged to SORA. The applying course of action involves evidence of sale for The existing residence, for instance an alternative to get, and documentation for the new home. Repayment from the mortgage is expected as soon as the sale of the prevailing flat is concluded plus the proceeds are gained. Some financial institutions, like UOB and get more info Normal Chartered, supply bridging loan options, in some cases with preferential fees for purchasers also using a brand new home personal loan with them. It is vital to note that a bridging loan differs through the HDB's Enhanced Contra Facility, which is a plan specifically for These buying and providing HDB flats concurrently.