An HDB bridging loan is a brief-time period funding option created to aid homeowners in Singapore deal with the fiscal hole amongst providing their current HDB flat and getting a different residence. This financial loan delivers momentary cash, commonly for your duration of approximately six months, to go over the downpayment and also other Preliminary fees of the new property ahead of the sale proceeds within the outdated flat are gained. Bridging loans are typically offered by banks and they are secured versus the present house. They normally come with higher desire premiums than common residence loans, normally starting from 3% to 5% for every annum or simply a fee pegged to SORA. The appliance procedure requires evidence of sale for The present home, such as a possibility to get, and documentation for the new assets. Repayment with the bank loan is expected as soon as the sale of the present flat click here is finished and the proceeds are been given. Some financial institutions, like UOB and Regular Chartered, offer bridging financial loan alternatives, occasionally with preferential fees for purchasers also taking a completely new property mortgage with them. It is vital to notice that a bridging loan differs from your HDB's Increased Contra Facility, that's a scheme especially for Individuals buying and providing HDB flats simultaneously.