An HDB bridging personal loan is a brief-time period funding option made to assist homeowners in Singapore control the economic gap among offering their current HDB flat and acquiring a whole new house. This bank loan gives short term money, normally for any period of up to six months, to address the downpayment and other initial costs of The brand new residence prior to the sale proceeds through the previous flat are obtained. Bridging loans are frequently made available from financial institutions and so are secured in opposition to the existing property. They ordinarily have increased curiosity prices than standard home financial loans, typically ranging from 3% to five% for each annum or even a price pegged to SORA. The application system involves proof of sale for the current get more info assets, for instance a choice to buy, and documentation for The brand new residence. Repayment in the loan is predicted when the sale of the existing flat is done plus the proceeds are acquired. Some banks, like UOB and Conventional Chartered, offer you bridging mortgage options, from time to time with preferential costs for customers also having a fresh house personal loan with them. It is important to note that a bridging financial loan is different within the HDB's Improved Contra Facility, that is a plan specifically for Those people acquiring and promoting HDB flats at the same time.