An HDB bridging personal loan is a brief-time period funding choice created to support homeowners in Singapore take care of the economical hole concerning advertising their present HDB flat and purchasing a brand new home. This mortgage gives short term money, generally for the duration of approximately 6 months, to protect the downpayment and various Original prices of The brand new residence ahead of the sale proceeds from the old flat are obtained. Bridging loans are usually offered by banks and are secured against the existing assets. They ordinarily have better fascination costs than common property loans, usually ranging from three% to five% for each click here annum or maybe a amount pegged to SORA. The appliance method needs proof of sale for The existing residence, for instance an alternative to get, and documentation for the new assets. Repayment with the financial loan is anticipated once the sale of the prevailing flat is done plus the proceeds are acquired. Some banking institutions, like UOB and Regular Chartered, give bridging financial loan possibilities, at times with preferential prices for patrons also getting a fresh house personal loan with them. It is important to note that a bridging personal loan differs from your HDB's Improved Contra Facility, which is a plan specifically for those obtaining and offering HDB flats simultaneously.