An HDB bridging bank loan is a short-expression funding possibility made to aid homeowners in Singapore deal with the money hole concerning advertising their present HDB flat and purchasing a fresh house. This bank loan supplies momentary cash, generally for your duration of approximately 6 months, to protect the downpayment and various Original expenditures of The brand new residence prior to the sale proceeds through the outdated flat are acquired. Bridging loans are usually offered by banks and are secured against the prevailing residence. They commonly feature increased curiosity charges than regular house loans, normally starting from 3% to 5% per annum or a level pegged to SORA. The applying course of action calls for proof of sale for the current check here assets, for instance an alternative to get, and documentation for the new assets. Repayment with the bank loan is expected once the sale of the prevailing flat is accomplished as well as the proceeds are obtained. Some banking companies, like UOB and Typical Chartered, offer you bridging mortgage options, in some cases with preferential costs for customers also having a different property mortgage with them. It is vital to note that a bridging loan differs from your HDB's Enhanced Contra Facility, which happens to be a scheme specifically for All those getting and selling HDB flats at the same time.