An HDB bridging financial loan is a short-time period financing selection designed to support homeowners in Singapore regulate the monetary gap amongst advertising their existing HDB flat and buying a different assets. This loan offers short term cash, commonly for just a duration of nearly 6 months, to address the downpayment as well as other Preliminary fees of the new home before the sale proceeds in the old flat are received. Bridging financial loans are frequently made available from banking companies and so are secured from the present home. They usually come with higher desire premiums than typical property loans, often starting from 3% to five% for each annum or even a price pegged to SORA. The application system involves proof of sale for The existing more info house, like a possibility to acquire, and documentation for the new residence. Repayment in the loan is anticipated once the sale of the prevailing flat is finished and the proceeds are gained. Some banking institutions, like UOB and Conventional Chartered, offer you bridging loan selections, at times with preferential fees for customers also getting a fresh dwelling mortgage with them. It is vital to notice that a bridging mortgage differs from the HDB's Improved Contra Facility, which happens to be a scheme specifically for All those purchasing and providing HDB flats at the same time.