An HDB bridging financial loan is a brief-time period funding choice created to support homeowners in Singapore take care of the money hole concerning advertising their present HDB flat and paying for a brand new home. This mortgage offers short-term funds, usually to get a period of as much as six months, to cover the downpayment as well as other initial expenses of the new assets ahead of the sale proceeds with the outdated flat are gained. Bridging financial loans are typically provided by banks and are secured against the prevailing residence. They generally include larger interest rates than conventional dwelling financial loans, usually ranging from three% to five% for each annum or even a price pegged to SORA. The application system involves evidence of sale for the current property, which include an alternative to get, and documentation for the new assets. Repayment with the bank loan is expected as soon as the sale of the present flat is finished and also more info the proceeds are received. Some banking companies, like UOB and Common Chartered, provide bridging personal loan selections, often with preferential prices for patrons also getting a brand new home financial loan with them. It is important to notice that a bridging financial loan is different within the HDB's Improved Contra Facility, that is a plan specifically for those obtaining and offering HDB flats at the same time.