An HDB bridging bank loan is a short-expression funding possibility made to aid homeowners in Singapore control the fiscal hole amongst providing their current HDB flat and obtaining a different assets. This personal loan presents non permanent resources, ordinarily for just a duration of as many as 6 months, to protect the downpayment and other Original prices of The brand new residence prior to the sale proceeds through the previous flat are obtained. Bridging loans are usually offered by banking companies and they are secured versus the present house. They normally come with higher desire fees than typical property loans, frequently ranging from three% to five% per annum or perhaps a rate pegged to SORA. The applying course of action calls for proof of sale for the current assets, for instance an alternative to buy, and documentation for The brand new residence. Repayment on the mortgage is expected as soon as the sale of the present flat is finished and the proceeds are been given. Some financial institutions, like UOB and check here Normal Chartered, offer bridging financial loan possibilities, occasionally with preferential rates for patrons also using a new household bank loan with them. It's important to notice that a bridging bank loan is different with the HDB's Enhanced Contra Facility, which is a plan specifically for All those acquiring and promoting HDB flats at the same time.