An HDB bridging mortgage is a short-phrase financing solution meant to help homeowners in Singapore handle the monetary gap in between offering their current HDB flat and acquiring a whole new residence. This financial loan supplies momentary cash, commonly for your duration of approximately six months, to go over the downpayment together with other First charges of the new home before the sale proceeds in the old flat are received. Bridging financial loans are commonly supplied by financial institutions and so are secured in opposition to the prevailing assets. They ordinarily feature increased curiosity prices than more info regular home financial loans, generally ranging from 3% to five% for every annum or maybe a fee pegged to SORA. The appliance procedure requires evidence of sale for The present home, like an Option to acquire, and documentation for the new home. Repayment of the personal loan is anticipated after the sale of the prevailing flat is concluded along with the proceeds are obtained. Some banks, like UOB and Typical Chartered, offer you bridging mortgage options, in some cases with preferential costs for customers also having a whole new residence loan with them. It is vital to note that a bridging personal loan differs in the HDB's Increased Contra Facility, which can be a scheme especially for These shopping for and marketing HDB flats simultaneously.