An HDB bridging bank loan is a short-phrase financing selection built to enable homeowners in Singapore regulate the economical hole involving advertising their present HDB flat and obtaining a completely new assets. This personal loan presents non permanent resources, commonly for your duration of approximately six months, to go over the downpayment and also other First fees of the new property ahead of the sale proceeds within the aged flat are gained. Bridging loans are typically offered by banks and they are secured versus the present house. They normally come with higher desire premiums than common residence loans, normally starting from 3% to 5% for every annum or maybe a fee pegged to SORA. The appliance procedure necessitates evidence of sale for The present property, which include an alternative to get, and documentation for the new assets. Repayment on the mortgage is expected as soon as the sale of the present flat is completed and the proceeds are gained. Some banking institutions, like UOB and Regular Chartered, give bridging financial loan alternatives, sometimes with preferential premiums for purchasers also taking a different residence loan with them. It is vital to note that a bridging personal loan is different from the HDB's Increased Contra Facility, which can be get more info a plan specifically for those obtaining and offering HDB flats at the same time.