An HDB bridging mortgage is a short-expression funding alternative built to help homeowners in Singapore control the money hole in between offering their current HDB flat and obtaining a new home. This bank loan delivers non permanent funds, usually for any period of approximately 6 months, to address the downpayment as well as other Preliminary fees of the new house prior to the sale proceeds through the outdated flat are gained. Bridging financial loans are commonly made available from banking companies and they are secured against the existing property. They typically come with higher interest rates than standard home loans, often starting from three% to five% for each annum or possibly a fee pegged to SORA. The appliance approach calls get more info for proof of sale for the current home, like an Option to Purchase, and documentation for The brand new residence. Repayment on the bank loan is anticipated once the sale of the existing flat is done as well as proceeds are gained. Some financial institutions, like UOB and Common Chartered, supply bridging mortgage options, sometimes with preferential fees for purchasers also using a brand new house personal loan with them. It is vital to notice that a bridging financial loan is different in the HDB's Enhanced Contra Facility, which happens to be a plan specifically for These buying and providing HDB flats concurrently.