An HDB bridging financial loan is a short-time period funding selection designed to assist homeowners in Singapore control the money hole amongst providing their current HDB flat and obtaining a completely new assets. This personal loan presents temporary resources, generally for any duration of as many as six months, to cover the downpayment and other First fees of The brand new home ahead of the sale proceeds from your aged flat are obtained. Bridging financial loans are generally provided by banking companies and therefore are secured from the prevailing property. They normally feature bigger interest charges than typical dwelling financial loans, often ranging from 3% to five% for every annum or a price pegged to SORA. The application procedure demands proof of sale for The existing assets, which include an alternative to get, and documentation for the new property. Repayment of your financial loan is expected as soon as the sale of the present flat is finished and also the proceeds are been given. Some financial institutions, like UOB and Regular Chartered, give bridging bank loan options, often with preferential rates for purchasers also having a fresh dwelling personal loan with them. It's important to notice that here a bridging personal loan differs through the HDB's Improved Contra Facility, which can be a scheme especially for People acquiring and promoting HDB flats simultaneously.