An HDB bridging loan is a short-expression funding alternative meant to assist homeowners in Singapore take care of the financial gap amongst providing their existing HDB flat and acquiring a different assets. This mortgage supplies momentary resources, usually for any duration of as many as 6 months, to cover the downpayment along with other First expenditures of The brand new assets before the sale proceeds in the previous flat are acquired. Bridging loans are normally supplied by banking companies and they are secured versus the existing property. They usually come with greater curiosity charges than common property loans, typically ranging from 3% to 5% per annum or even a charge pegged to SORA. The appliance approach calls for proof of sale for The present home, including a choice to buy, and documentation for the new assets. Repayment of your personal loan is predicted when the sale of the present flat is accomplished as well as the proceeds are acquired. Some banking institutions, like UOB and Regular Chartered, offer bridging loan solutions, in some cases with preferential premiums for purchasers click here also using a fresh house loan with them. It is vital to note that a bridging mortgage differs within the HDB's Improved Contra Facility, which can be a scheme especially for People getting and promoting HDB flats at the same time.