Bridging Loan for Property Purchase Explained: Benefits of Applying via Homejourney – in Singapore, a bridging loan is a short-term property loan that lets you buy your next home before your existing flat or condo is fully sold, while Homejourney helps you compare bank offers, check eligibility, and apply safely in one place.
If you are upgrading from an HDB in Punggol to a resale condo in Hougang, or moving from a Tiong Bahru walk-up to an EC in Sengkang, a bridging loan can cover your downpayment and fees while you wait for your sale proceeds to come in.
This cluster guide sits under Homejourney’s main mortgage pillar, the complete Singapore home loan guide , and focuses specifically on how bridging finance works and why it is safer and easier to apply through Homejourney.
What is a bridging loan in Singapore?
A bridging loan in Singapore is a short-term property loan (typically up to 6 months) that helps you pay the downpayment and other upfront costs of a new property while you are waiting for the sale proceeds of your existing home.
Most banks structure their bridge loan property products so that you can commit to your next flat or condo without being forced to sell your current place at a fire-sale price.
In practice, a typical bridging loan Singapore facility:
- Covers part of the purchase price or downpayment (often up to 15–25% of purchase price, depending on bank and your Loan-to-Value (LTV) structure)[1][3][5]
- Has a tenure of up to about 6 months[1][2][5]
- Is repaid in full when your existing property sale is completed, usually from the sale proceeds[2][3]
- Comes with higher interest than a standard home loan, because it is a short term property loan[2][6]
According to DBS, its bridging facility can cover up to 20% of the purchase price with a maximum loan period of six months[5].
For many HDB upgraders in estates like Sengkang, Bedok, or Bukit Panjang, this bridging finance option is what lets them book a new condo or EC unit first, then take time to sell their existing flat at a fair price instead of rushing a quick sale.
How bridging loans work in an actual Singapore upgrade scenario
Here is a realistic example similar to what I often see with families upgrading from a 4-room HDB in Tampines to a $1.2 million resale condo in Pasir Ris.
Assume:
- New condo purchase price: $1,200,000
- Maximum LTV (bank loan): 75% = $900,000
- Total minimum downpayment: 25% = $300,000 (5% cash + 20% cash/CPF)
- Sale of existing HDB: agreed price $650,000, but completion is 4–5 months away
If the buyers only have $80,000 available now (CPF + cash), they are short on funds for the 20% portion of the downpayment and other costs like BSD and legal fees.
A property bridge loan can:
- Advance them, say, $180,000–$200,000 to complete the downpayment and cover duties
- Be repaid when the HDB sale is completed, using the sales proceeds coming back after clearing the existing loan and CPF refund
This allows them to secure the Pasir Ris unit they like (near the MRT and White Sands) without panic-selling their Tampines flat.
Types of bridging loan structures
Most banks in Singapore offer one of two main structures for bridge loan property financing[1][3]:
- Capitalised interest bridging loan – You normally start repaying only after you receive the sale proceeds from your old home. During the bridging period, the interest is capitalised (added to the loan), so your immediate cash outlay is lower[1][3].
- Simultaneous repayment bridging loan – You pay monthly instalments for both the bridging loan and the new home loan at the same time, until the old property is sold and the bridging loan is cleared[1][3]. This can reduce total interest but requires stronger cash flow.
In practice, families who are already servicing an existing HDB or condo loan and have school-going kids often prefer the capitalised interest option because it keeps monthly cash flow simpler during the move.
Key benefits of bridging finance – and why to be cautious
Used correctly, bridging finance can be a very useful tool:
- Secure your next home early – In hot areas like Bukit Merah or Queenstown near MRT and popular schools, a good resale unit can be snapped up within days. A bridging loan lets you exercise the OTP without waiting for your existing sale to complete.
- Avoid fire-sale pricing – Instead of slashing the price of your existing flat just to rush completion, you can negotiate more calmly, especially for high-demand HDB towns like Bishan or Clementi.
- Lower long-term home loan interest – By using a bridge loan to beef up your downpayment, you can potentially reduce your final LTV and secure better long-term home loan rates[1][2][3].
But there are real risks you must consider carefully:
- Higher interest cost – Bridging interest is typically higher than your main mortgage rate[2][6].
- Short repayment window – Most banks require full repayment within 6 months[1][2][3][5]. If your buyer delays or backs out, you may face pressure to refinance or inject additional funds.
- Market risk – If the market softens unexpectedly, your eventual sale price may be lower than expected, reducing the proceeds available to clear your bridge loan.
This is why MAS’ Total Debt Servicing Ratio (TDSR) and HDB’s financing rules are designed to prevent over-leverage and protect borrowers. You should always check the latest MAS and HDB guidelines before committing to any property bridge facility.
Why apply for a bridging loan via Homejourney?
Applying for a bridging loan Singapore facility directly with multiple banks can be confusing and time-consuming, especially when you’re juggling viewings, option deadlines, and HDB resale appointments.
Homejourney simplifies this into a safer, more transparent process:
- Compare bank rates in one place – See bridging and home loan packages from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank, and Citibank side by side on the bank rates page Bank Rates .
- Multi-bank application – Submit one application through Homejourney and have it sent securely to multiple partner banks instead of repeating the same forms 8–10 times.
- Singpass/MyInfo integration – Use Singpass so your income, CPF contribution history, and employment details can be auto-filled, reducing manual errors and speeding up assessment.
- Real-time rate visibility – Track live 3M and 6M SORA movements directly on Homejourney so you understand the floating-rate environment before locking in your bridge plus home loan structure.
- Safety and verification – Homejourney puts user safety first with bank partners that are MAS-regulated, transparent display of key terms, and clear workflows that reduce miscommunication between buyers, agents, and bankers.
Because bridging loans interact closely with your long-term home loan, using a single, trusted platform like Homejourney for both helps you avoid mismatched structures – for example, taking a short-term high-interest bridge that doesn’t align with your final mortgage approval.
Step-by-step: How to apply for a bridging loan via Homejourney
Here is a straightforward, practical sequence most Singapore buyers can follow.
Step 1: Confirm your buying and selling timeline
Before anything, sit down with your agent (or your own spreadsheet) and map out both transactions:
- Estimated completion date for the sale of your existing HDB/condo
- Option expiry and expected completion for your new purchase
- Any HDB-specific constraints, such as Minimum Occupation Period (MOP) or resale checklist requirements (for HDB, refer to HDB’s official portal for resale timelines and procedures)
