An HDB bridging bank loan is a short-phrase funding option meant to assistance homeowners in Singapore take care of the fiscal gap concerning providing their current HDB flat and purchasing a new residence. This bank loan provides non permanent money, typically for your period of as many as six months, to address the downpayment and various Preliminary costs of the new assets prior to the sale proceeds within the previous flat are been given. Bridging loans are commonly provided by banking companies and are secured from the existing house. They typically include bigger interest premiums than standard property financial loans, frequently ranging from three% to five% per annum or maybe a rate pegged to SORA. The appliance course of action demands proof of sale for The present assets, like a choice to acquire, and documentation here for The brand new property. Repayment in the financial loan is predicted once the sale of the existing flat is accomplished as well as proceeds are received. Some banking institutions, like UOB and Common Chartered, give bridging loan choices, often with preferential premiums for patrons also having a new house bank loan with them. It is important to note that a bridging bank loan is different through the HDB's Improved Contra Facility, and that is a plan specifically for People obtaining and providing HDB flats at the same time.