An HDB bridging financial loan is a short-phrase financing solution meant to assistance homeowners in Singapore manage the financial gap between selling their present HDB flat and purchasing a new property. This loan provides temporary resources, ordinarily for just a duration of as many as 6 months, to protect the downpayment and various First 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, often starting from three% to 5% per annum or simply a amount pegged to SORA. The appliance method requires evidence of sale for The present home, such as a possibility to acquire, and documentation for the new property. Repayment with the bank loan is expected as soon as the sale of the present flat is finished and also the proceeds are received. Some banking companies, like UOB and Common Chartered, provide bridging loan selections, at times with preferential rates for purchasers also using a completely new property mortgage with them. It is vital to note that a bridging personal loan more info differs with the HDB's Enhanced Contra Facility, which happens to be a scheme especially for People purchasing and advertising HDB flats concurrently.