An HDB bridging financial loan is a brief-term financing possibility created to enable homeowners in Singapore manage the economic hole concerning selling their existing HDB flat and acquiring a completely new property. This mortgage gives momentary cash, ordinarily for a period of as much as six months, to protect the downpayment and various initial expenses of the new home before the sale proceeds from your previous flat are acquired. Bridging loans are normally supplied by financial institutions and they are secured versus the prevailing assets. They ordinarily have bigger desire fees than standard home financial loans, normally starting from three% to five% for each annum or possibly a fee pegged to SORA. The appliance approach calls for proof of sale for the current property, such as an Option to invest in, and get more info documentation for The brand new residence. Repayment on the bank loan is expected once the sale of the prevailing flat is done as well as proceeds are gained. Some financial institutions, like UOB and Normal Chartered, supply bridging mortgage 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 can be a scheme especially for Individuals purchasing and advertising HDB flats concurrently.