An HDB bridging loan is a short-expression funding alternative meant to aid homeowners in Singapore take care of the monetary gap involving advertising their existing HDB flat and acquiring a completely new property. This mortgage supplies non permanent funds, normally for the duration of nearly 6 months, to include the downpayment and also other Original prices of the new property before the sale proceeds from your previous flat are gained. Bridging financial loans are commonly made available from banks and are secured towards the existing home. They normally include increased check here fascination premiums than typical dwelling financial loans, normally starting from three% to five% for each annum or maybe a amount pegged to SORA. The applying system necessitates evidence of sale for The present residence, for instance an alternative to get, and documentation for the new home. Repayment from the mortgage is expected as soon as the sale of the prevailing flat is done as well as proceeds are gained. Some financial institutions, like UOB and Common Chartered, offer you bridging bank loan alternatives, at times with preferential prices for customers also having a completely new household financial loan with them. It is important to note that a bridging personal loan differs from your HDB's Enhanced Contra Facility, which is a plan specifically for These buying and advertising HDB flats concurrently.