An HDB bridging loan is a brief-time period funding option created to aid homeowners in Singapore deal with the fiscal hole amongst marketing their current HDB flat and getting a whole new residence. This financial loan supplies short term cash, normally for any period of as much as six months, to cover the downpayment along with other Preliminary expenses of the new assets ahead of the sale proceeds with the outdated flat are acquired. Bridging loans are generally offered by banking companies and so are secured from the present home. click here They typically have better fascination charges than regular house financial loans, generally ranging from 3% to five% for each annum or possibly a charge pegged to SORA. The application process involves proof of sale for the current assets, for instance an alternative to buy, and documentation for The brand new residence. Repayment in the mortgage is predicted when the sale of the existing flat is completed plus the proceeds are acquired. Some banking institutions, like UOB and Conventional Chartered, present bridging bank loan choices, in some cases with preferential costs for customers also having a whole new residence personal loan with them. It is important to note that a bridging personal loan is different within the HDB's Improved Contra Facility, that is a plan specifically for those obtaining and promoting HDB flats at the same time.