An HDB bridging loan is a brief-time period financing alternative intended to assistance homeowners in Singapore manage the monetary gap in between offering their current HDB flat and getting a different residence. This personal loan presents non permanent funds, typically for a period of up to six months, to cover the downpayment along with other Preliminary fees of the new home before the sale proceeds from the old flat are received. Bridging financial loans are frequently made available from banking companies and so are secured from the present house. They normally include greater interest rates than conventional dwelling financial loans, typically ranging from 3% click here to five% for every annum or maybe a amount pegged to SORA. The appliance method demands proof of sale for The existing residence, for example a choice to Purchase, and documentation for The brand new residence. Repayment on the mortgage is expected as soon as the sale of the present flat is finished and also the proceeds are received. Some banking companies, like UOB and Common Chartered, supply bridging loan solutions, from time to time with preferential costs for customers also having a different residence mortgage with them. It is vital to note that a bridging loan differs through the HDB's Enhanced Contra Facility, which happens to be a scheme specifically for All those getting and promoting HDB flats at the same time.