An HDB bridging personal loan is a brief-time period funding option created to aid homeowners in Singapore deal with the money hole involving providing their present HDB flat and paying for a new property. This loan offers temporary funds, typically to get a period of up to 6 months, to include the downpayment along with other Preliminary expenses of the new assets ahead of the sale proceeds with the outdated flat are acquired. Bridging loans are usually offered by banking companies and they are secured from the present home. They usually come with bigger fascination costs than normal house financial loans, normally starting from 3% to five% for every annum or possibly a charge pegged to SORA. The application process necessitates evidence of sale for the current property, which include an alternative to buy, and documentation for the new residence. Repayment on the mortgage is predicted when the sale of the existing flat is completed as well as proceeds are gained. Some banking institutions, like click here UOB and Standard Chartered, present bridging bank loan choices, often with preferential charges for customers also getting a fresh home financial loan with them. It is important to notice that a bridging bank loan is different with the HDB's Improved Contra Facility, which is a plan specifically for All those getting and selling HDB flats at the same time.