An HDB bridging financial loan is a short-expression funding possibility designed to help homeowners in Singapore handle the monetary gap in between promoting their existing HDB flat and purchasing a brand new home. This mortgage offers temporary funds, typically for a duration of as many as 6 months, to protect the downpayment and various Original expenditures of The brand new house before the sale proceeds in the old flat are been given. Bridging financial loans are normally supplied by banking institutions and therefore are secured against the prevailing residence. They generally include larger interest fees than conventional household loans, frequently starting from three% to 5% per annum or a level pegged to SORA. The applying approach involves proof of sale for the current assets, for instance a choice to buy, and documentation for The brand new house. Repayment in the loan is predicted after the sale of the existing flat is done plus the proceeds read more are acquired. Some banks, like UOB and Typical Chartered, offer you bridging mortgage solutions, from time to time with preferential charges for customers also getting a fresh home financial loan with them. It's important to notice that a bridging bank loan is different with the HDB's Enhanced Contra Facility, which is a plan specifically for All those getting and selling HDB flats concurrently.