An HDB bridging loan is a brief-phrase financing option created to enable homeowners in Singapore manage the economic gap amongst advertising their existing HDB flat and buying a whole new residence. This personal loan provides short-term money, normally for the duration of as many as 6 months, to address the downpayment along with other Preliminary charges of The brand new residence prior to the sale proceeds with the outdated flat are been given. Bridging financial loans are frequently made available from banking companies and they are secured versus the prevailing assets. They ordinarily have bigger desire fees than conventional check here dwelling financial loans, normally starting from three% to 5% per annum or even a charge pegged to SORA. The application procedure demands proof of sale for The existing assets, for instance an alternative to acquire, and documentation for the new home. Repayment from the loan is predicted when the sale of the present flat is accomplished as well as the proceeds are obtained. Some banks, like UOB and Conventional Chartered, present bridging financial loan possibilities, at times with preferential prices for patrons also having a whole new residence mortgage with them. It is vital to notice that a bridging bank loan is different within the HDB's Improved Contra Facility, which can be a scheme especially for Individuals purchasing and advertising HDB flats concurrently.