An HDB bridging bank loan is a short-phrase financing selection meant to assistance homeowners in Singapore manage the financial gap between selling their existing HDB flat and purchasing a brand new home. This loan offers temporary funds, typically for a duration of nearly 6 months, to deal with the downpayment and various Original expenditures of The brand new house prior to the sale proceeds from your old flat are received. Bridging financial loans are commonly supplied by financial institutions and therefore are secured towards the existing assets. They commonly feature check here larger curiosity rates than conventional dwelling financial loans, usually ranging from three% to five% per annum or perhaps a rate pegged to SORA. The applying approach needs proof of sale for The existing house, including an Option to invest in, and documentation for The brand new home. Repayment of the personal loan is predicted when the sale of the existing flat is done plus the proceeds are acquired. Some banks, like UOB and Conventional Chartered, offer you bridging mortgage options, from time to time with preferential costs for customers also having a whole new house personal loan with them. It is important to note that a bridging financial loan is different within the HDB's Improved Contra Facility, which is a plan specifically for Those people acquiring and promoting HDB flats at the same time.