An HDB bridging bank loan is a short-phrase financing selection meant to help homeowners in Singapore manage the financial gap between selling their existing HDB flat and purchasing a new property. This loan provides temporary resources, ordinarily for just a duration of as many as 6 months, to protect the downpayment and various Original expenditures of The brand new house before the sale proceeds in the old flat are been given. Bridging financial loans are commonly supplied by banking institutions and therefore are secured against the existing assets. They commonly feature larger interest rates than conventional household financial loans, usually ranging from three% to five% per annum or perhaps a rate pegged to SORA. The applying approach needs proof of sale for The existing residence, including an Option to invest in, and documentation for The brand new home. Repayment on the mortgage is predicted when the sale of the existing flat is completed as well as proceeds are acquired. Some banking institutions, like UOB and Standard Chartered, present bridging bank loan choices, in some cases with preferential costs for customers also having a whole more info new house personal loan with them. It is important to note that a bridging financial loan is different from the HDB's Improved Contra Facility, that is a plan specifically for those obtaining and offering HDB flats at the same time.