An HDB bridging loan is a brief-term financing alternative built to assistance homeowners in Singapore manage the financial gap between promoting their existing HDB flat and buying a fresh house. This bank loan gives short term money, normally for any period of around six months, to include the downpayment and also other Preliminary fees of the new property before the sale proceeds within the aged flat are been given. Bridging financial loans are normally provided by banking institutions and therefore are secured against the existing assets. They typically have better fascination charges than normal house financial loans, generally starting from 3% to five% for every annum or maybe a fee pegged to SORA. The application process necessitates evidence of sale for The present property, which include a possibility to get, and documentation for the new property. Repayment with the financial loan is expected once the sale of the prevailing flat is accomplished as well as the proceeds are received. Some banking companies, like UOB and Common Chartered, supply bridging loan solutions, from time to time with preferential charges for customers also getting a fresh house personal loan with them. It is important to note that a bridging financial loan is different from the HDB's Improved Contra Facility, that is a click here plan specifically for those obtaining and marketing HDB flats simultaneously.