An HDB bridging financial loan is a brief-term financing selection meant to help homeowners in Singapore control the fiscal hole involving advertising their present HDB flat and purchasing a brand new home. This bank loan gives short term cash, generally for your duration of as many as 6 months, to protect the downpayment and various Original prices of The brand new residence ahead of the sale proceeds with the outdated flat are received. Bridging loans are generally offered by banks and they are secured versus the prevailing residence. They commonly feature larger curiosity charges than regular house loans, normally starting from 3% to 5% per annum or a rate pegged to SORA. The applying course of action involves proof of sale for the here current property, which include a possibility to get, and documentation for the new property. Repayment of your financial loan is anticipated after the sale of the prevailing flat is done plus the proceeds are acquired. Some banking institutions, like UOB and Standard Chartered, give bridging financial loan alternatives, occasionally with preferential rates for patrons also using a brand new home financial loan with them. It is important to notice that a bridging financial loan is different from the HDB's Improved Contra Facility, which can be a scheme especially for These buying and providing HDB flats simultaneously.