An HDB bridging personal loan is a brief-term financing selection meant to assist homeowners in Singapore control the fiscal hole involving providing their present HDB flat and paying for a brand new home. This mortgage gives short term cash, generally for the duration of approximately six months, to protect the downpayment and various Original prices of The brand new residence ahead of the sale proceeds with the outdated flat are gained. Bridging loans are typically provided by banking institutions and therefore are secured towards the existing property. They typically come with bigger desire premiums than typical property loans, frequently ranging from three% to five% for each annum or even a charge pegged to SORA. The application process requires evidence of sale for The present home, like an Option to invest in, and documentation for The brand new home. Repayment from the loan is predicted when the sale of the existing flat is completed as well as proceeds are gained. Some financial institutions, like UOB and Regular Chartered, offer bridging personal loan selections, at times with preferential prices for patrons also getting a fresh get more info house personal loan with them. It is important to note that a bridging personal loan is different in the HDB's Increased Contra Facility, that's a scheme especially for Individuals purchasing and advertising HDB flats concurrently.