An HDB bridging personal loan is a brief-time period funding option made to aid homeowners in Singapore control the fiscal gap among marketing their current HDB flat and acquiring a whole new house. This bank loan supplies short term cash, generally for any period of around six months, to cover the downpayment along with other Preliminary charges of the new home before the sale proceeds from the aged flat are been given. Bridging financial loans are normally provided by banking institutions and are secured against the prevailing residence. They generally include greater interest fees than typical property loans, frequently starting from three% to 5% per annum or a level pegged to SORA. The application process involves evidence of sale for the current assets, for instance an alternative to buy, and documentation for The brand new residence. Repayment in the mortgage is predicted when the sale of the present flat is completed as well as proceeds are gained. Some banking institutions, like UOB and Standard Chartered, present bridging bank loan choices, in some cases with more info preferential premiums for purchasers also having a different residence loan with them. It is vital to note that a bridging personal loan is different from the HDB's Increased Contra Facility, which can be a plan especially for These shopping for and marketing HDB flats simultaneously.