An HDB bridging personal loan is a short-term funding choice designed to enable homeowners in Singapore handle the money gap amongst selling their current HDB flat and purchasing a whole new property. This bank loan presents short-term cash, typically for the duration of as much as six months, to address the downpayment and also other Original expenses of the new residence ahead of the sale proceeds in the outdated flat are been given. Bridging loans are typically supplied by banking companies and are secured towards the present house. They commonly have higher curiosity costs than typical dwelling financial loans, often ranging from 3% to 5% for each annum or a charge pegged to SORA. The applying hdb bridging loan 170 28 system demands proof of sale for the current home, for example an alternative to acquire, and documentation for The brand new residence. Repayment of your personal loan is predicted once the sale of the prevailing flat is completed and also the proceeds are obtained. Some banking institutions, like UOB and Normal Chartered, offer you bridging bank loan possibilities, often with preferential costs for purchasers also using a fresh residence mortgage with them. It's important to note that a bridging loan differs with the HDB's Improved Contra Facility, that's a scheme specifically for those buying and advertising HDB flats at the same time.