An HDB bridging personal loan is a brief-term financing alternative intended to enable homeowners in Singapore regulate the financial gap between promoting their existing HDB flat and buying a whole new house. This financial loan supplies momentary cash, commonly for your duration of as many as 6 months, to protect the downpayment and various Original prices of The brand new assets ahead of the sale proceeds with the outdated flat are gained. Bridging financial loans are normally provided by banking institutions and therefore are secured towards the existing property. They typically come with bigger desire premiums than typical property loans, usually ranging from three% to five% for each annum or possibly more info a charge pegged to SORA. The application procedure requires evidence of sale for The present house, including an Option to Purchase, and documentation for The brand new house. Repayment in the loan is predicted when the sale of the present flat is finished and also the proceeds are received. Some banking companies, like UOB and Common Chartered, supply bridging loan solutions, from time to time with preferential costs for customers also having a different property mortgage with them. It is vital to notice that a bridging mortgage differs through the HDB's Enhanced Contra Facility, which happens to be a plan specifically for Those people acquiring and promoting HDB flats at the same time.