An HDB bridging personal loan is a brief-term financing selection meant to help homeowners in Singapore handle the economic gap between selling their present HDB flat and obtaining a different residence. This bank loan gives temporary resources, generally for any duration of as many as six months, to address the downpayment and other First costs of The brand new residence before the sale proceeds with the old flat are gained. Bridging financial loans are typically made available from banks and therefore are secured from the prevailing property. They normally feature bigger desire rates than normal residence loans, usually ranging from 3% to 5% for every annum or a rate pegged to SORA. The application process requires evidence of sale for The present home, including an Option to invest in, and documentation for The brand new home. Repayment of the personal loan is anticipated once the sale of the present flat is finished and also the proceeds are gained. Some banking institutions, like UOB and Conventional Chartered, offer you click here bridging loan possibilities, occasionally with preferential costs for patrons also taking a different home bank loan with them. It is important to notice that a bridging personal loan is different from your HDB's Improved Contra Facility, and that is a plan especially for Those people buying and promoting HDB flats simultaneously.