An HDB bridging loan is a short-expression funding selection designed to support homeowners in Singapore regulate the economic hole concerning promoting their current HDB flat and paying for a brand new house. This personal loan provides short term cash, ordinarily to get a period of approximately 6 months, to cover the downpayment and also other Original costs of the new property before the sale proceeds through the outdated flat are been given. Bridging financial loans are generally offered by banking institutions and therefore are secured from the prevailing assets. They typically come with greater curiosity charges than common household financial loans, generally starting from three% to five% for each annum or maybe a amount pegged to SORA. The applying system requires evidence of sale for The existing assets, which include a possibility to invest in, and documentation for The hdb bridging loan 170 28 brand new assets. Repayment with the financial loan is predicted when the sale of the present flat is accomplished along with the proceeds are acquired. Some banking institutions, like UOB and Normal Chartered, supply bridging mortgage choices, occasionally with preferential rates for patrons also having a different property bank loan with them. It's important to note that a bridging personal loan differs from your HDB's Enhanced Contra Facility, that is a plan especially for Individuals purchasing and selling HDB flats at the same time.