An HDB bridging financial loan is a short-time period financing option meant to support homeowners in Singapore manage the money gap amongst promoting their current HDB flat and buying a different home. This financial loan provides momentary funds, normally for just a period of as many as 6 months, to go over the downpayment as well as other First costs of the new house ahead of the sale proceeds in the outdated flat are been given. Bridging loans are typically supplied by banking companies and therefore are secured in opposition to the prevailing property. They normally feature bigger interest charges than typical dwelling loans, frequently ranging from 3% to five% for every annum or a website price pegged to SORA. The appliance course of action necessitates evidence of sale for the current home, including an alternative to acquire, and documentation for The brand new assets. Repayment of your loan is expected once the sale of the existing flat is finished as well as the proceeds are acquired. Some financial institutions, like UOB and Typical Chartered, give bridging personal loan options, occasionally with preferential prices for customers also taking a brand new house mortgage with them. It's important to notice that a bridging personal loan differs with the HDB's Improved Contra Facility, and that is a plan specifically for Individuals getting and promoting HDB flats simultaneously.