An HDB bridging bank loan is a short-phrase financing selection created to support homeowners in Singapore deal with the money hole involving advertising their present HDB flat and paying for a brand new home. This mortgage offers short-term money, usually for any period of as much as six months, to cover the downpayment along with other Preliminary expenses of the new property ahead of the sale proceeds within the aged flat are gained. Bridging financial loans are normally provided by banking institutions and are secured against the existing assets. They commonly feature increased curiosity prices than regular home financial loans, generally starting from 3% to 5% for every annum or maybe a fee pegged to SORA. The application process necessitates evidence of sale for The present property, which include an alternative to get, and documentation for the new assets. Repayment with the bank loan is expected as soon as the sale of the present flat is finished and the proceeds are been given. Some financial institutions, like UOB and Regular Chartered, offer bridging financial loan alternatives, occasionally with click here preferential fees for purchasers also taking a completely new property mortgage with them. It is vital to note that a bridging loan differs from your HDB's Increased Contra Facility, that's a scheme especially for Individuals buying and marketing HDB flats simultaneously.