An HDB bridging mortgage is a brief-term financing alternative meant to help homeowners in Singapore handle the economic gap among offering their current HDB flat and getting a different residence. This financial loan delivers non permanent cash, commonly for your duration of as many as 6 months, to protect the downpayment together with other First charges of The brand new house before the sale proceeds in the old flat are received. Bridging financial loans are frequently made available from financial institutions and so are secured in opposition to the existing home. They typically have bigger fascination costs than common residence loans, often starting from 3% to 5% per annum or simply a amount pegged to SORA. The appliance method needs proof of sale for The existing assets, for instance a choice to Purchase, and documentation for The brand new house. Repayment in the loan is predicted when the sale of the existing check here flat is done plus the proceeds are acquired. Some banks, like UOB and Conventional Chartered, offer you bridging mortgage options, from time to time with preferential costs for customers also having a whole new house personal loan with them. It is important to note that a bridging financial loan is different within the HDB's Improved Contra Facility, which is a plan specifically for Those people acquiring and promoting HDB flats at the same time.