Are you in the midst of selling your home or property and wanted to buy a new one and you lack some funds, you may consider applying for a bridging loan? With a bridging loan, you can able to find the fund that you need to purchase for either a new or existing property.
What is a Bridging Loan?
In Singapore, a bridging loan is commonly taken by owners who are selling their old flats or either upgrade or downgrade their existing flats. They signed up for this loan offer to be used as down payments or to pay for related expenses to the property transactions. Therefore, a bridging loan can “bridge” the gap between securing a new flat or upgrading it and the sale of the old property.
Bridging loans are also a type of short-term loan offered by banks and moneylenders. Also, this type of loan is a secured one. As mentioned earlier you may apply for a bridging loan while you are selling your old property. An individual may purchase private property and HDB flats with bridging loans. But remember that it is only a temporary financing solution, it is not a substitute for a home loan since it has shorter loan terms.
As you search along, you may find that there are numerous bridging loans in Singapore. And, we are here to help. EasyFind created a smart guide to help you in getting the best bridging loan and ending up with a wiser decision.
How Bridging Loans Work?
In Singapore, when you are looking for condominiums or HDB flats, they are only up for sale for a short period of time. If you are short of funds, you might miss the chance of getting your ideal home. This is where the bridging loan comes into place.
With a bridging loan, you can able to borrow up to 25% of the purchase price of your new flat. Its tenor can be up to 6 months. This loan can help you in paying for deposits and down payments to secure your new home.
Before applying for a bridging loan it is essential that you assess your capacity in paying the loan, especially that this is a short-term loan. Below are the key considerations when applying for a bridging loan in Singapore.