An HDB bridging financial loan is a short-expression funding solution meant to assistance homeowners in Singapore regulate the economical hole concerning providing their present HDB flat and obtaining a different residence. This financial loan supplies short term money, normally to get a period of up to 6 months, to address the downpayment and other Original expenditures of The brand new house before the sale proceeds from the aged flat are gained. Bridging financial loans are typically provided by banks and they are secured from the present home. They usually have better fascination charges than regular dwelling financial loans, usually ranging from three% to five% per annum or perhaps a level pegged to SORA. The applying approach demands evidence of sale for The present home, such as a possibility to get, and documentation for website the new assets. Repayment with the mortgage is expected when the sale of the present flat is completed plus the proceeds are acquired. Some banks, like UOB and Conventional Chartered, offer you bridging mortgage solutions, often with preferential prices for patrons also using a brand new dwelling bank loan with them. It's important to notice that a bridging mortgage differs within the HDB's Improved Contra Facility, that is a plan specifically for Those people acquiring and selling HDB flats concurrently.