An HDB bridging mortgage is a short-term financing selection built to enable homeowners in Singapore regulate the economical hole concerning advertising their present HDB flat and paying for a completely new assets. This personal loan presents non permanent resources, ordinarily for your duration of approximately six months, to go over the downpayment together with other First charges of the new home before the sale proceeds from the aged flat are gained. Bridging financial loans are normally provided by banks and are secured versus the prevailing residence. They generally include greater desire fees than typical property loans, often starting from three% to 5% per annum or simply a amount pegged to SORA. The appliance method requires evidence of sale for The present home, such as a possibility to acquire, and documentation for the new property. Repayment of your financial loan is expected as soon as the more info sale of the prevailing flat is finished and also the proceeds are received. Some financial institutions, like UOB and Normal Chartered, provide bridging personal loan possibilities, at times with preferential prices for customers also getting a fresh home financial loan with them. It's important to notice that a bridging bank loan differs through the HDB's Enhanced Contra Facility, and that is a scheme especially for Individuals buying and providing HDB flats simultaneously.