An HDB bridging bank loan is a short-phrase financing selection built to enable homeowners in Singapore regulate the economical hole involving providing their current HDB flat and getting a different residence. This financial loan supplies short term money, normally to get a period of up to 6 months, to address the downpayment as well as other initial prices of The brand new residence prior to the sale proceeds from your old flat are received. Bridging financial loans are commonly provided by banking institutions and are secured against the prevailing residence. They normally come with higher desire premiums than common residence loans, normally starting from 3% to five% for each annum or possibly a charge pegged to SORA. The application system involves proof of sale for the current assets, for example a choice to Purchase, and documentation for The brand new home. Repayment of the personal loan is anticipated once the sale of the prevailing flat is accomplished as well as the proceeds are received. Some banking companies, like UOB and Normal Chartered, provide bridging personal loan possibilities, occasionally with click here preferential fees for purchasers also taking a completely new property mortgage with them. It is vital to note that a bridging personal loan differs in the HDB's Increased Contra Facility, which can be a plan specifically for those obtaining and offering HDB flats at the same time.