An HDB bridging bank loan is a short-time period financing alternative created to help homeowners in Singapore take care of the economic hole amongst promoting their present HDB flat and acquiring a new residence. This mortgage presents short term resources, normally for a period of nearly six months, to deal with the downpayment together with other initial charges of The brand new home ahead of the sale proceeds from the outdated flat are been given. Bridging loans are commonly offered by banking institutions and they are secured against the present assets. They usually feature here bigger curiosity rates than conventional dwelling financial loans, usually ranging from three% to five% for each annum or maybe a amount pegged to SORA. The appliance method demands evidence of sale for The existing house, like a possibility to acquire, and documentation for the new property. Repayment of your financial loan is anticipated once the sale of the prevailing flat is accomplished as well as the proceeds are received. Some banking companies, like UOB and Common Chartered, provide bridging loan selections, often with preferential prices for patrons also using a brand new dwelling bank loan with them. It's important to notice that a bridging mortgage differs through the HDB's Enhanced Contra Facility, which happens to be a scheme especially for People purchasing and advertising HDB flats concurrently.