An HDB bridging mortgage is a short-expression funding option created to support homeowners in Singapore take care of the economical hole between selling their existing HDB flat and buying a fresh house. This bank loan supplies momentary cash, commonly for your duration of as many as 6 months, to deal with the downpayment and other initial costs of The brand new assets ahead of the sale proceeds within the aged flat are gained. Bridging financial loans are normally provided by financial institutions and therefore are secured towards the existing property. They typically have bigger desire premiums than common property loans, frequently starting from three% to five% per annum or perhaps a price pegged to SORA. The application process necessitates evidence of sale for The present property, such as a possibility to acquire, and documentation for the new home. Repayment of the personal loan is anticipated after the sale of the existing flat is done as well as proceeds are gained. Some banking institutions, like UOB and Standard Chartered, give bridging financial loan more info alternatives, occasionally with preferential rates for patrons also using a brand new dwelling financial loan with them. It's important to notice that a bridging financial loan is different within the HDB's Improved Contra Facility, that is a plan specifically for These shopping for and marketing HDB flats simultaneously.