An HDB bridging bank loan is a short-phrase financing solution meant to help homeowners in Singapore handle the monetary gap in between offering their current HDB flat and buying a whole new residence. This financial loan supplies momentary cash, generally for the duration of approximately six months, to go over the downpayment and also other First charges of the new home before the sale proceeds from the old flat are been given. Bridging financial loans are commonly supplied by financial institutions and therefore are secured towards the existing property. They ordinarily have better fascination charges than regular house financial loans, normally starting from 3% to 5% for every annum or maybe a fee pegged to SORA. The appliance procedure requires proof of sale for The existing house, including an Option to invest in, and documentation for The brand new home. Repayment of the personal loan is anticipated once the sale of the prevailing flat is accomplished as well as the proceeds are received. Some banking companies, like UOB and Common Chartered, provide bridging personal loan selections, at times with preferential rates for patrons also using a new household bank loan with them. It's important to notice that a bridging mortgage differs from your HDB's Enhanced Contra Facility, and that is read more a scheme especially for Individuals buying and selling HDB flats concurrently.