An HDB bridging bank loan is a short-phrase financing solution meant to help homeowners in Singapore manage the monetary gap in between promoting their existing HDB flat and buying a fresh home. This mortgage gives short-term money, usually to get a period of up to 6 months, to address the downpayment and other initial prices of The brand new residence prior to the sale proceeds through the previous flat are obtained. Bridging loans are frequently made available from financial institutions and so are secured in opposition to the existing property. They ordinarily have better curiosity charges than regular home financial loans, generally ranging check here from 3% to five% for each annum or even a price pegged to SORA. The application system involves proof of sale for the current assets, for instance a choice to buy, and documentation for The brand new residence. Repayment in the loan is predicted when the sale of the existing flat is done plus the proceeds are acquired. Some banks, like UOB and Conventional Chartered, present bridging mortgage options, in some cases with preferential costs for customers also having a new household bank loan with them. It's important to notice that a bridging mortgage differs through the HDB's Enhanced Contra Facility, which happens to be a scheme especially for People purchasing and advertising HDB flats at the same time.