An HDB bridging bank loan is a brief-time period funding possibility designed to help homeowners in Singapore manage the economical hole amongst providing their current HDB flat and getting a different house. This bank loan gives short-term resources, commonly for the period of nearly six months, to cover the downpayment as well as other Original fees of The brand new home ahead of the sale proceeds from your aged flat are obtained. Bridging financial loans are generally provided by banking companies and are secured in opposition to the prevailing property. They normally feature bigger interest prices than common household financial loans, normally starting from three% to five% for each annum or simply a level pegged to SORA. The applying process requires evidence of sale for The existing check here house, for example a choice to buy, and documentation for the new residence. Repayment on the bank loan is expected as soon as the sale of the present flat is finished and the proceeds are gained. Some banking institutions, like UOB and Standard Chartered, offer you bridging loan selections, at times with preferential fees for customers also getting a new residence personal loan with them. It's important to note that a bridging bank loan differs within the HDB's Enhanced Contra Facility, which can be a plan especially for All those shopping for and promoting HDB flats simultaneously.