An HDB bridging loan is a short-phrase financing solution designed to assist homeowners in Singapore control the fiscal hole involving advertising their existing HDB flat and purchasing a whole new residence. This financial loan presents temporary funds, usually for any period of approximately six months, to protect the downpayment and various Original costs of The brand new property ahead of the sale proceeds from the old flat are received. Bridging financial loans are generally made available from banks and are secured against the prevailing assets. They ordinarily have bigger desire fees than conventional dwelling financial loans, typically ranging from 3% to 5% for every annum or a level pegged to SORA. The applying course of action involves evidence of sale for The present home, like an Option to invest in, and documentation for The brand new house. Repayment in the mortgage is expected as soon as the sale of the prevailing flat is accomplished along with the proceeds are acquired. Some banking institutions, like UOB and Standard Chartered, give bridging financial loan possibilities, at times with preferential prices for patrons also getting a whole new residence loan with them. It is read more vital to note that a bridging mortgage differs through the HDB's Enhanced Contra Facility, which is a plan specifically for those shopping for and marketing HDB flats simultaneously.