An HDB bridging loan is a brief-time period funding choice created to aid homeowners in Singapore deal with the fiscal hole amongst marketing their current HDB flat and getting a different residence. This financial loan delivers momentary cash, generally for the period of around six months, to include the downpayment and also other Preliminary fees of the new property ahead of the sale proceeds with the outdated flat are acquired. Bridging loans are usually offered by banks and they are secured versus the present house. They normally come with higher desire premiums than common residence loans, often starting from 3% to 5% for every annum or simply a amount pegged to SORA. The appliance procedure requires evidence of sale for The present home, such as a possibility to acquire, and documentation for the new property. Repayment with the bank loan is expected as soon as the sale here of the present flat is finished and also the proceeds are been given. Some financial institutions, like UOB and Normal Chartered, offer bridging financial loan possibilities, occasionally with preferential rates for purchasers 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 a scheme especially for Individuals purchasing and providing HDB flats concurrently.