An HDB bridging bank loan is a brief-time period funding choice intended to assistance homeowners in Singapore manage the monetary gap involving providing their present HDB flat and paying for a new property. This loan provides temporary funds, typically for a period of around six months, to include the downpayment and also other First charges of the new home before the sale proceeds in the old flat are received. Bridging financial loans are commonly supplied by financial institutions and so are secured in opposition to the existing property. They typically have bigger desire click here costs than common residence loans, often starting from three% to 5% per annum or a level pegged to SORA. The applying approach calls for proof of sale for The existing residence, for example a choice to buy, and documentation for The brand new residence. Repayment in the mortgage is predicted when the sale of the present flat is completed and the proceeds are gained. Some banking institutions, like UOB and Regular Chartered, offer bridging financial loan possibilities, occasionally with preferential rates for purchasers also using a new household bank loan with them. It's important to notice that a bridging mortgage differs with the HDB's Enhanced Contra Facility, which happens to be a plan specifically for Those people acquiring and promoting HDB flats at the same time.