Bridging Loan Singapore
Need a Bridging Loan in Singapore? A bridging loan in Singapore can provide the financial support you need when transitioning from one home to another. Whether you're in the midst of buying a new property or selling your current one, a home bridging loan helps you bridge the gap.
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What is a Bridging Loan in Singapore?
A bridging loan in Singapore is a short-term loan designed to help you cover the gap between buying a new property and selling your existing one. It provides immediate access to funds, ensuring you can proceed with purchasing your new home while awaiting the sale of your current property. The interest rate on these loans is typically higher than traditional mortgages but offers the flexibility you need in urgent situations.
When Should You Consider a Bridging Loan?
You should consider a bridging loan:
- When you’re buying a new property before selling your existing home.
- If you need funds quickly to secure a new home while waiting for your sale proceeds.
- If you want to avoid delays in purchasing your new property and don’t want to miss out on a great opportunity.
Benefits of a Bridging Loan
Quick Access To Funds
Bridging loans provide immediate financial relief when purchasing a new home.
No Need to Wait for Property Sale
Secure your new home without having to wait for the sale of your current one.
Flexible Repayment Terms
Repayment options can be tailored to fit your specific financial situation.
Short-Term Financing Solution
A quick and effective solution for covering the short gap between properties.
Eligibility Criteria 
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Frequently Asked Questions
Can I apply for a bridging loan if my property is still under a bank mortgage?
Yes, you can apply for a bridging loan even if your property is still under a bank mortgage. However, the lender will assess your ability to repay the loan, taking into account your current mortgage and the value of your property. The bridging loan will help cover the gap between your existing mortgage and the purchase price of your new home.
How long is the repayment period for a bridging loan?
The repayment period for a bridging loan in Singapore is typically short-term, usually ranging from 6 months to 12 months. The exact duration will depend on your financial situation and the terms set by the lender. Repayment terms can be tailored to suit your specific needs, making it a flexible solution for bridging the gap when buying a new home.
Is a bridging loan only for residential properties, or can it be used for commercial properties as well?
While bridging loans are most commonly used for residential properties in Singapore, they can also be used for commercial properties. The loan is designed to help bridge the gap in property transactions, whether you’re dealing with a home purchase or a commercial real estate investment. Ensure you discuss your property type with the lender for more specific terms.
Are there any penalties for early repayment of a bridging loan?
Typically, there are no penalties for early repayment of a bridging loan in Singapore. However, the exact terms will vary depending on the lender. It’s always advisable to check the loan agreement to confirm whether early repayment will incur any fees or charges. Many licensed moneylenders offer flexibility when it comes to early repayment.
What documents are required to apply for a bridging loan?
To apply for a bridging loan in Singapore, you’ll typically need the following documents:
- Proof of identity (e.g., NRIC or passport)
- Property details (e.g., sales and purchase agreement)
- Proof of income (e.g., payslips, tax returns)
- Current bank mortgage details (if applicable)
- Proof of property sale agreement
These documents help the lender assess your financial situation and ensure you meet the eligibility criteria.
What is the interest rate for bridging loans in Singapore?
The interest rate for bridging loans in Singapore can vary depending on the lender and the type of loan. Generally, the interest rate ranges from 1.5% to 3.5% per month. Always ensure you understand the terms and any associated fees before committing to a bridging loan.
