An HDB bridging bank loan is a short-phrase financing selection built to assistance homeowners in Singapore manage the financial gap between selling their existing HDB flat and purchasing a new property. This loan provides temporary resources, ordinarily for just a duration of as many as 6 months, to protect the downpayment together with other First charges of the new home before the sale proceeds from the aged flat are been given. Bridging financial loans are normally provided by banking institutions and are secured against the prevailing residence. They generally include greater interest fees than typical property loans, frequently starting from three% to 5% per annum or a level pegged to SORA. The appliance method demands evidence of sale for The existing house, like a possibility to acquire, and documentation for the new property. Repayment of your financial loan is anticipated once the sale of the prevailing flat is accomplished and also the proceeds are received. more info Some financial institutions, like UOB and Normal Chartered, provide bridging personal loan possibilities, at times with preferential rates for patrons also using a new household bank loan with them. It's important to notice that a bridging mortgage differs through the HDB's Enhanced Contra Facility, and that is a scheme especially for People purchasing and providing HDB flats concurrently.