An HDB bridging bank loan is a short-phrase financing alternative built to assistance homeowners in Singapore regulate the economical hole concerning advertising their present HDB flat and paying for a new property. This loan presents non permanent resources, ordinarily for your duration of approximately six months, to go over the downpayment together with other 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 larger fascination costs than normal house loans, normally starting from 3% to 5% for every annum or maybe a fee pegged to SORA. The appliance procedure necessitates evidence more info of sale for The present property, which include an alternative to get, and documentation for the new assets. Repayment on the mortgage is expected as soon as the sale of the present flat is completed as well as proceeds are gained. Some banking institutions, like UOB and Standard Chartered, give bridging bank loan choices, sometimes with preferential premiums for customers also having a different residence loan with them. It is vital to note that a bridging personal loan is different from the HDB's Increased Contra Facility, which can be a plan specifically for those obtaining and offering HDB flats at the same time.