An HDB bridging mortgage is a short-phrase financing selection built to assistance homeowners in Singapore manage the monetary gap in between promoting their existing HDB flat and buying a fresh house. This bank loan supplies momentary cash, generally for the period of around six months, to go over 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 frequently supplied by financial institutions and so are secured in opposition to the existing home. They typically come with bigger fascination costs than common residence loans, often starting from three% to 5% per annum or a level pegged to SORA. The appliance approach needs proof of sale for The existing house, including an Option to invest in, and documentation for The brand new house. Repayment from the personal click here loan is predicted after the sale of the existing flat is done plus the proceeds are acquired. Some financial institutions, like UOB and Normal Chartered, offer bridging financial loan possibilities, occasionally with preferential fees for purchasers also using a new property mortgage with them. It is vital to note that a bridging loan differs from your HDB's Increased Contra Facility, that's a scheme especially for These shopping for and marketing HDB flats simultaneously.