Bridging Loan for Property Purchase Explained: Bank Rate Comparison Guide
A bridging loan for property purchase is a short-term bridging finance solution in Singapore that covers the downpayment gap when upgrading properties, typically repayable within 6 months from sales proceeds of your old home.[1][2][4]
At Homejourney, we prioritize your safety and trust by verifying real-time bank rates and guiding you through secure applications. This cluster article breaks down bridging loan Singapore essentials, compares major bank rates, and links to our pillar guide on complete home financing strategies.
What is a Bridging Loan in Singapore?
A bridge loan property or short term property loan helps buyers commit to a new home before selling their current one. It's common for HDB-to-private upgrades, where you need funds for the 25% downpayment (beyond the 75% LTV bank loan limit set by MAS).[2][3]
For example, buying a S$1.5M condo requires S$375,000 downpayment. If your old HDB flat sale yields S$500,000 but isn't completed, a bridging loan covers up to 20-25% (S$300,000-S$375,000), pegged to your expected proceeds.[1][3]
Homejourney's real-time tracker on our bank rates page shows live comparisons, ensuring you pick the best property bridge option safely.
Types of Bridging Loans
- Capitalized Interest: Interest adds to principal; no payments until old property sells (up to 6 months).[1][2]
- Simultaneous Payment: Pay bridging loan and new mortgage concurrently; up to 12 months to sell.[1][5]
Eligibility requires age 21+, good credit, OTP for new property, and proof of old property sale process (e.g., listing or buyer interest).[1][2] MAS Notice 1107 regulates these for HDB and private properties.[6]
Current Bridging Loan Rates: Major Banks Comparison (2025)
Rates range 4.25%-6% p.a., often pegged to Prime or SORA + spread. Use Homejourney's mortgage calculator for personalized quotes. Below is a comparison based on latest data:[2][4]
| Bank | Rate (p.a.) | Max Tenure | Max Amount | Best For |
|---|---|---|---|---|
| DBS | Prime (4.25%)[2][4] | 6 months | 20% purchase price | HDB upgrades |
| OCBC | SORA + 2.0-2.5% | 6 months | Net proceeds-based | Private property |
| UOB | Prime + 0.5-1.0% | 6 months | Up to 25% | Investors |
| HSBC | SORA + 2.25% | 6 months | Proceeds-linked | Expats |
| Standard Chartered | 3M SORA + 2.50% (HDB)[2] | 6 months | HDB-specific | First-timers |
| Maybank/CIMB/RHB/etc. | 5-6% fixed | 6 months | 20-25% | Competitive spreads |
Disclaimer: Rates as of 2025; verify on Homejourney for live updates. Not financial advice—consult professionals.[1][2]
Compare all instantly on Homejourney bank rates, where Singpass auto-fills applications for faster approvals.
Step-by-Step: How to Apply for a Bridging Loan
- Secure OTP: Get Option to Purchase for new property.[1]
- List Old Property: Provide sale proof (e.g., agent listing).[1]
- Gather Docs: Bank statements, CPF statements, income proof.[1]
- Apply via Homejourney: Submit once to multiple banks (DBS, OCBC, UOB, HSBC, etc.) using Singpass—banks compete for you.
- Calculate Costs: For S$300,000 loan at 5% over 6 months: ~S$7,500 interest. Use our calculator.
- Sell & Repay: Use proceeds within 6 months; no lock-in typically.[2][4]
Insider tip: Apply early during HDB-to-private upgrades (e.g., from Toa Payoh HDB to Orchard condo) to avoid auction rushes.[3] Link to Homejourney property search for budget-matched options.
Pros, Cons & When to Use Bridging Finance
Pros: Secures dream home fast; covers LTV gaps; short-term (low total interest).[1][3]
Cons: High rates (5-6%); 6-month deadline; limited to proceeds.[1][3]
- Extra interest if sale delays.
Best for: Upgraders with strong equity. Avoid if cash-rich. See boost approval odds for tips.
Homejourney: Your Safe Path to Bridging Loans
Homejourney verifies rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and more—track 3M/6M SORA live. Apply to all banks simultaneously, get competing offers, and enjoy expert WhatsApp support. We build trust through transparency, just like our verified projects directory.
Refinance seamlessly post-bridge; explore full 2025 guide.
FAQ: Bridging Loan Singapore Questions
1. How much does a bridging loan cost?
Interest 4.25%-6% p.a. for 6 months; e.g., S$300K loan at 5% = ~S$7,500. Check Homejourney for exacts.[1][2]
2. Can foreigners get bridging loans?
