An HDB bridging mortgage is a brief-term financing choice created to support homeowners in Singapore deal with the money hole amongst marketing their current HDB flat and getting a different residence. This financial loan delivers momentary cash, generally for any period of as much as six months, to cover the downpayment as well as other initial costs of The brand new residence prior to the sale proceeds through the previous flat are obtained. Bridging loans are generally made available from banking companies and so are secured in opposition to the existing property. They ordinarily have increased website curiosity prices than regular home financial loans, typically ranging from 3% to five% for each annum or even a price pegged to SORA. The applying course of action calls for proof of sale for The existing residence, for example a choice to Purchase, and documentation for The brand new house. Repayment from the personal loan is anticipated after the sale of the existing flat is concluded along with the proceeds are obtained. Some banks, like UOB and Typical Chartered, supply bridging mortgage solutions, from time to time with preferential charges for customers also getting a fresh home financial loan with them. It is important to notice that a bridging bank loan is different with the HDB's Improved Contra Facility, which is a plan specifically for All those getting and selling HDB flats concurrently.