An HDB bridging financial loan is a short-expression funding choice built to assistance homeowners in Singapore handle the fiscal hole involving advertising their existing HDB flat and buying a fresh house. This financial loan presents temporary funds, usually to get a period of around six months, to go over the downpayment together with other Original prices of The brand new assets ahead of the sale proceeds with the aged flat are been given. Bridging financial loans are commonly made available from banking companies and they are secured from the prevailing residence. They generally feature increased curiosity charges than normal residence loans, often starting from three% to five% for each annum or even a charge pegged to SORA. The application procedure requires evidence of sale for The existing house, including click here a choice to Purchase, and documentation for The brand new residence. Repayment on the bank loan is expected once the sale of the prevailing flat is concluded plus the proceeds are acquired. Some banking institutions, like UOB and Standard Chartered, give bridging personal loan possibilities, often with preferential prices for customers also having a whole new residence loan with them. It is vital to note that a bridging loan differs through the HDB's Enhanced Contra Facility, which happens to be a plan specifically for Those people obtaining and marketing HDB flats simultaneously.