An HDB bridging personal loan is a brief-term financing choice created to support homeowners in Singapore deal with the fiscal gap among offering their current HDB flat and acquiring a fresh home. This bank loan gives short-term money, usually for a duration of nearly 6 months, to protect the downpayment together with other First charges of the new home before the sale proceeds within the aged flat are gained. Bridging loans are usually offered by banking companies and they are secured from the present home. They typically have increased curiosity prices than standard dwelling financial loans, usually ranging from three% to 5% per annum or a level pegged to SORA. The applying method demands evidence of sale for The present home, such as a possibility to get, and documentation for the new click here assets. Repayment with the bank loan is expected when the sale of the present flat is completed as well as proceeds are gained. Some banking institutions, like UOB and Conventional Chartered, present bridging mortgage options, from time to time with preferential charges for customers also getting a fresh home financial loan with them. It's important to notice that a bridging bank loan differs through the HDB's Enhanced Contra Facility, and that is a scheme especially for Individuals buying and providing HDB flats simultaneously.