An HDB bridging bank loan is a brief-time period financing selection meant to assist homeowners in Singapore deal with the economical hole between offering their current HDB flat and obtaining a completely new property. This mortgage gives momentary cash, commonly for just a duration of up to six months, to include the downpayment and also other First expenditures of The brand new residence ahead of the sale proceeds with the aged flat are been given. Bridging financial loans are commonly made available from banking companies and they are secured versus the prevailing residence. They commonly feature increased fascination costs than common property loans, usually ranging from 3% to five% for every annum or maybe a amount pegged to click here SORA. The appliance approach calls for proof of sale for the current property, such as a possibility to acquire, and documentation for The brand new home. Repayment from the loan is predicted when the sale of the present flat is finished and also the proceeds are obtained. Some banks, like UOB and Conventional Chartered, present bridging bank loan alternatives, occasionally with preferential rates for patrons also using a brand new home personal loan with them. It is important to note that a bridging loan differs from your HDB's Enhanced Contra Facility, which happens to be a plan specifically for Those people obtaining and offering HDB flats simultaneously.