An HDB bridging bank loan is a short-expression funding option created to support homeowners in Singapore take care of the economical hole between promoting their existing HDB flat and acquiring a whole new residence. This financial loan delivers non permanent resources, ordinarily for just a duration of nearly 6 months, to address the downpayment as well as other initial expenses of the new property ahead of the sale proceeds within the aged flat are been given. Bridging financial loans are commonly supplied by financial institutions and so are secured in opposition to the present home. They usually come with higher desire fees than typical household financial loans, usually ranging from three% to five% for each annum or possibly a charge pegged to SORA. The appliance procedure requires evidence of sale for The existing house, including an Option to Purchase, and documentation for The brand new house. Repayment in the loan is predicted when the sale of the present flat is finished and the proceeds are been given. Some financial institutions, like UOB and get more info Common Chartered, provide bridging loan solutions, from time to time with preferential charges for customers also having a whole new residence loan with them. It is vital to note that a bridging loan differs from your HDB's Increased Contra Facility, and that is a scheme especially for People purchasing and selling HDB flats concurrently.