An HDB bridging financial loan is a short-expression funding possibility designed to help homeowners in Singapore handle the monetary gap in between promoting their existing HDB flat and buying a fresh home. This mortgage gives short-term money, usually to get a period of up to 6 months, to deal with the downpayment and various Original expenditures of The brand new house prior to the sale proceeds in the old flat are received. Bridging financial loans are commonly supplied by financial institutions and therefore are secured towards the existing assets. They commonly feature increased curiosity prices than standard dwelling financial loans, usually ranging from three% to five% per annum or perhaps a rate pegged to SORA. The applying approach needs proof of sale for The existing house, including an Option to invest in, and documentation for The brand new home. Repayment of the personal loan is anticipated once the sale of the prevailing flat is accomplished along with the proceeds are received. Some banking companies, like UOB and Typical Chartered, supply bridging loan solutions, often with preferential prices for patrons also getting a brand new dwelling financial loan with them. It's important to notice that a bridging bank loan differs through the HDB's Enhanced read more Contra Facility, which happens to be a scheme specifically for People purchasing and advertising HDB flats concurrently.