An HDB bridging loan is a brief-time period funding option made to aid homeowners in Singapore deal with the fiscal gap amongst marketing their current HDB flat and acquiring a whole new house. This bank loan supplies short term money, normally for any period of as much as six months, to cover the downpayment as well as other initial costs of The brand new assets prior to the sale proceeds through the previous flat are obtained. Bridging loans are generally made available from banking companies and so are secured in opposition to the existing property. They typically have better fascination charges than regular home financial loans, typically ranging from 3% to five% for hdb bridging loan 170 28 each annum or even a charge pegged to SORA. The application system involves proof of sale for the current assets, for instance a choice to buy, and documentation for The brand new residence. Repayment in the loan is predicted when the sale of the existing flat is done plus the proceeds are acquired. Some banks, like UOB and Conventional Chartered, offer you bridging mortgage options, from time to time with preferential costs for customers also having a fresh house personal loan with them. It is important to note that a bridging financial loan is different within the HDB's Improved Contra Facility, that is a plan specifically for Those people acquiring and promoting HDB flats at the same time.