An HDB bridging mortgage is a short-phrase funding possibility created to support homeowners in Singapore regulate the economical hole concerning advertising their present HDB flat and paying for a new assets. This personal loan delivers short term funds, typically for just a period of as much as 6 months, to go over the downpayment along with other Original charges of the new house ahead of the sale proceeds through the aged flat are acquired. Bridging financial loans are usually supplied by banks and therefore are secured versus the existing home. They commonly have greater curiosity premiums than conventional home loans, frequently ranging from 3% to 5% per annum or perhaps a charge pegged to SORA. The appliance method needs proof of sale for the current assets, which include a possibility to acquire, and documentation for the new property. more info Repayment of your financial loan is anticipated once the sale of the prevailing flat is accomplished as well as the proceeds are received. Some financial institutions, like UOB and Normal Chartered, give bridging bank loan options, from time to time with preferential prices for purchasers also having a fresh dwelling mortgage with them. It is important to notice that a bridging personal loan is different from your HDB's Improved Contra Facility, which happens to be a plan especially for These getting and marketing HDB flats concurrently.