An HDB bridging personal loan is a brief-expression funding possibility designed to assist homeowners in Singapore handle the economic gap among marketing their current HDB flat and getting a different residence. This financial loan delivers non permanent resources, commonly for your duration of as many as 6 months, to address the downpayment as well as other initial costs of The brand new assets prior to the sale proceeds through the previous flat are obtained. Bridging loans are generally made available from banking companies and so are secured in opposition to the existing property. They typically have better fascination charges than regular home financial loans, generally ranging from here 3% to five% for each annum or even a price pegged to SORA. The application system involves proof of sale for the current assets, for instance a choice to Purchase, and documentation for The brand new house. Repayment from the loan is predicted after the sale of the existing flat is done plus the proceeds are acquired. Some banks, like UOB and Conventional Chartered, present bridging bank loan choices, in some cases with preferential premiums for purchasers also taking a different property mortgage with them. It is vital to note that a bridging loan differs from your HDB's Increased Contra Facility, and that is a scheme especially for Individuals buying and advertising HDB flats concurrently.