An HDB bridging loan is a brief-term financing selection meant to help homeowners in Singapore handle the economic gap amongst marketing their current HDB flat and obtaining a completely new property. This loan offers short-term money, normally for any period of around six months, to include the downpayment together with other First expenditures of The brand new house prior to the sale proceeds through the previous flat are acquired. Bridging loans are usually offered by banks and they are secured versus the prevailing residence. They generally include greater interest rates than conventional dwelling financial loans, usually ranging from 3% to five% for each annum or possibly a charge pegged to SORA. The application process necessitates evidence of sale for The present property, which include more info a possibility to get, and documentation for the new assets. Repayment with the bank loan is expected once the sale of the prevailing flat is accomplished as well as the proceeds are received. Some banking companies, like UOB and Common Chartered, supply bridging loan solutions, from time to time with preferential charges for customers also having a whole new house personal loan with them. It is important to note that a bridging personal loan is different from the HDB's Increased Contra Facility, that's a scheme especially for These buying and providing HDB flats simultaneously.