An HDB bridging personal loan is a brief-term financing alternative intended to enable homeowners in Singapore regulate the financial gap in between promoting their existing HDB flat and acquiring a whole new residence. This financial loan delivers momentary cash, commonly for your duration of as many as 6 months, to protect the downpayment and various Original expenditures of The brand new residence prior to the sale proceeds from your previous flat are obtained. Bridging loans are generally made available from banking companies and they are secured versus the present house. They normally include greater interest fees than conventional household financial loans, usually ranging from three% to five% for each annum or even more info a price pegged to SORA. The application system involves evidence of sale for the current property, which include an alternative to get, and documentation for the new assets. Repayment with the bank loan is expected as soon as the sale of the present flat is accomplished and also the proceeds are received. Some banking companies, like UOB and Common Chartered, provide bridging loan selections, often with preferential prices for patrons also getting a fresh home financial loan with them. It is important to note that a bridging financial loan is different within the HDB's Improved Contra Facility, that is a plan specifically for those obtaining and offering HDB flats simultaneously.