An HDB bridging loan is a brief-time period funding option made to assist homeowners in Singapore handle the monetary hole concerning providing their current HDB flat and buying a brand new property. This financial loan supplies short-term resources, normally to get a duration of as much as 6 months, to include the downpayment and other First costs of the new residence before the sale proceeds through the aged flat are obtained. Bridging loans are commonly offered by banking institutions and so are secured versus the existing property. They normally include increased fascination premiums than conventional home financial loans, often starting from three% to five% for each annum or possibly a fee pegged to SORA. The appliance method demands proof of sale for The existing house, including an Option to invest in, and documentation for The brand new home. Repayment of the financial loan is anticipated as soon as the sale of the present flat is completed as well as proceeds more info are acquired. Some banks, like UOB and Common Chartered, offer bridging bank loan options, often with preferential rates for customers also getting a new residence financial loan with them. It is vital to note that a bridging mortgage is different through the HDB's Improved Contra Facility, which happens to be a plan especially for those purchasing and offering HDB flats concurrently.