An HDB bridging mortgage is a short-term financing alternative intended to enable homeowners in Singapore take care of the economical hole concerning advertising their present HDB flat and paying for a new property. This loan provides temporary funds, typically for a duration of nearly 6 months, to deal with the downpayment and various Original expenditures of The brand new house before the sale proceeds in the old flat are received. Bridging financial loans are commonly supplied by banking institutions and therefore are secured towards the existing assets. They commonly feature larger curiosity rates than conventional dwelling financial loans, usually ranging from three% to five% for each annum or perhaps a rate 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 loan is predicted after the sale of the existing flat is done plus the proceeds are acquired. Some banks, like UOB and Conventional Chartered, offer you bridging mortgage options, in some cases with preferential costs for customers also having a whole new house personal loan with them. It is important to note that click here a bridging financial loan is different from the HDB's Improved Contra Facility, that is a plan specifically for those obtaining and promoting HDB flats at the same time.