hdb bridging loan 170 28

An HDB bridging mortgage is a short-phrase financing solution designed to aid homeowners in Singapore deal with the money hole among marketing their current HDB flat and obtaining a completely new property. This loan offers short-term money, normally for any period of approximately six months, to go over the downpayment together with other First expenditures of The brand new residence prior to the sale proceeds through the outdated flat are acquired. Bridging loans are typically provided by banking institutions and therefore are secured towards the existing property. They ordinarily have bigger fascination costs than common property loans, frequently ranging from three% to five% for each annum or even a price pegged to SORA. The application process necessitates evidence of sale for The present home, like an Option to invest in, and documentation for The brand new home. Repayment from the loan is predicted when click here the sale of the existing flat is completed and the proceeds are been given. Some financial institutions, like UOB and Common Chartered, provide bridging loan solutions, from time to time with preferential costs for customers also having a different residence mortgage with them. It is vital to note that a bridging loan differs through the HDB's Enhanced Contra Facility, which happens to be a scheme specifically for All those acquiring and promoting HDB flats at the same time.