An HDB bridging mortgage is a brief-term financing choice intended to support homeowners in Singapore deal with the fiscal hole amongst marketing their current HDB flat and acquiring a fresh home. This mortgage offers short-term funds, typically for a duration of as many as 6 months, to protect the downpayment and various Original expenditures of The brand new home before the sale proceeds from the aged flat are been given. Bridging financial loans are normally provided by banking institutions and are secured against the prevailing residence. They generally include greater interest fees than typical household loans, frequently starting from three% to 5% per annum or a level pegged to SORA. The appliance method demands evidence of sale for The existing house, like an Option to acquire, and documentation for the new property. Repayment of your financial loan is anticipated once the sale of the prevailing flat is accomplished as well as the proceeds are received. Some banking companies, like UOB and Common Chartered, provide bridging personal loan selections, at times with preferential rates for patrons also using a new household bank loan with them. It's important to notice that a bridging mortgage differs from your HDB's Enhanced Contra Facility, and that is a plan get more info specifically for Those people getting and selling HDB flats at the same time.