An HDB bridging financial loan is a short-expression funding solution meant to assistance homeowners in Singapore manage the financial hole between selling their present HDB flat and paying for a new property. This loan provides temporary resources, ordinarily for just a duration of as many as 6 months, to protect the downpayment together with other First charges of the new home before the sale proceeds from the aged flat are gained. Bridging financial loans are typically provided by banks and are secured versus the prevailing house. They normally come with higher desire premiums than common residence loans, often starting from 3% to 5% for every annum or maybe a fee pegged to SORA. The appliance procedure necessitates evidence of sale for The present property, which include an alternative to get, and documentation for the new check here assets. Repayment on the mortgage is expected as soon as the sale of the present flat is completed as well as proceeds are gained. Some banking institutions, like UOB and Standard Chartered, give bridging bank loan choices, sometimes with preferential premiums for customers also having a different residence loan with them. It is important to note that a bridging personal loan is different from the HDB's Improved Contra Facility, that is a plan specifically for those obtaining and promoting HDB flats at the same time.