An HDB bridging financial loan is a short-expression funding possibility made to aid homeowners in Singapore control the fiscal hole amongst providing their present HDB flat and purchasing a brand new home. This loan provides temporary funds, typically for just a duration of nearly 6 months, to protect the downpayment and various Original expenditures of The brand new house before the sale proceeds in the old flat are been given. Bridging financial loans are normally supplied by banking institutions and are secured against the prevailing residence. They generally include larger interest rates than conventional household loans, frequently ranging from three% to 5% per annum or a level pegged to SORA. The applying approach needs proof of sale for The existing house, including an Option to invest in, and documentation for The brand new home. Repayment of the financial loan is anticipated once the sale of the prevailing flat is accomplished as well as the proceeds are received. Some banking companies, like UOB and Common Chartered, provide bridging personal loan selections, at times with preferential prices for patrons also using a brand new dwelling bank loan with read more them. It's important to notice that a bridging mortgage differs through the HDB's Enhanced Contra Facility, and that is a scheme especially for People purchasing and advertising HDB flats concurrently.