An HDB bridging personal loan is a brief-time period funding choice made 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include the downpayment along with other Preliminary expenses of the new property ahead of the sale proceeds within the outdated flat are gained. Bridging loans are typically 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, like a possibility to acquire, and documentation for read more the new property. Repayment with the bank loan is expected as soon as the sale of the prevailing flat is finished and also the proceeds are been given. Some financial institutions, like UOB and Normal Chartered, provide bridging personal loan possibilities, at times with preferential rates for patrons also using a new dwelling bank loan with them. It's important to notice that a bridging mortgage differs through the HDB's Enhanced Contra Facility, and that is a scheme especially for People purchasing and advertising HDB flats concurrently.