Bridging Loan for Property Purchase Explained: Bank Rate Comparison Guide

A bridging loan Singapore is a short-term property bridge loan, typically lasting up to 6 months, to cover downpayments on a new property before sale proceeds from your current home arrive. Interest rates range from 4% to 6% p.a., with loan amounts up to 20-25% of the new property's purchase price, limited by your expected net proceeds and CPF refunds[1][2][5].

Homejourney prioritizes your safety by verifying rates from partner banks like DBS, OCBC, and UOB, helping you compare bridge loan property options transparently. This cluster guide dives into bank comparisons, building on our pillar content for comprehensive Singapore property financing.

What is a Bridging Loan in Singapore?

Bridging finance, or short term property loan, bridges the cash gap when upgrading from an HDB flat to private property. For example, selling a $800,000 HDB in Punggol for $900,000 net proceeds lets you borrow up to $200,000-$225,000 for a $1.2 million condo downpayment[1][2].

You pay interest monthly or capitalize it, repaying principal fully upon sale completion via cash or CPF. MAS Notice 1107 regulates these for HDB and private properties, ensuring consumer protection[7]. Homejourney's real-time tools let you calculate costs instantly at https://www.homejourney.sg/bank-rates.

Key Features of Bridging Loans Across Singapore Banks

Maximum tenure is 6 months for all major banks. Loan quantum ties to verified sale proceeds: net cash + CPF Ordinary Account balances post-sale[1][8][9]. Rates are higher than standard home loans due to short-term risk.

Eligibility: Singapore Citizens/PRs selling property; good credit score; OTP for new property[4].
Documents: Sale approval from HDB/URA, OTP, CPF statements, income proof.
Repayment: Full principal + interest from sale proceeds; no extensions typically.

Compare rates and apply via Homejourney's multi-bank system using Singpass for faster approvals and less paperwork.

Current Bridging Loan Rates: Major Banks Comparison (2026)

Rates as of early 2026 hover at 4-6% p.a., pegged to Prime, SORA, or fixed. Homejourney aggregates live data from partners—DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank—for instant comparison[1][3][5].

Bank	Interest Rate (p.a.)	Max Loan	Key Feature
DBS/POSB	5-6% (Prime-based)	20% purchase price	Up to 6 months; easy integration with DBS home loans[5][6]
OCBC	5-6%	Net proceeds limit	Flexible for HDB-private upgrades[1]
UOB	4-5%	All property types	Interest-only; full repayment post-sale[3]
HSBC	3M SORA + 2-3%	Up to 25%	Competitive for investors[3]
Standard Chartered	3M SIBOR + 2%	HDB focus	Low spread for resale flats[3]
Maybank/CIMB/RHB	5-6%	20-25%	Quick processing for foreigners/PRs

The table above compares bridging loan Singapore offerings. DBS and UOB lead for reliability; HSBC for lower effective rates if SORA dips. Always verify on Homejourney bank rates as rates fluctuate.

Interest Rate Trends Impacting Bridging Loans

Bridging rates often track SORA or Prime. With SORA stabilizing post-2025 hikes, expect 4.5-5.5% averages. The chart below shows recent interest rate trends in Singapore:

As seen, 6-month SORA averaged 4.2% in late 2025, influencing bank spreads. Track live on Homejourney to time your bridging finance application.

Pros, Cons, and Who Each Bank Suits

DBS: Pros: Seamless if existing customer; cons: Higher end of rates. Best for HDB upgraders.
UOB: Pros: Lowest rates (4-5%); cons: Strict on proceeds proof. Ideal for private property buyers.
HSBC/Standard Chartered: Pros: SORA-pegged flexibility; cons: Processing 3-5 days longer. Suits investors timing en bloc sales.
Others (Maybank etc.): Pros: Niche for non-residents; cons: Less digital tools.

Homejourney lets banks compete: submit one app, get best offers. Use our mortgage calculator to assess affordability.

Step-by-Step: How to Apply for a Bridging Loan

Verify Eligibility: Confirm HDB/URA sale approval; calculate proceeds (e.g., $600k HDB sale = $500k net + CPF).
Compare Rates: On Homejourney, view DBS vs UOB spreads.
Gather Docs: OTP, sale letter, CPF statements, income docs.
Apply via Singpass: Homejourney auto-fills; multi-bank submission.
Receive Funds: 3-7 days; pay interest monthly.
Repay: Use sale proceeds within 6 months.

Pro Tip: For HDB-to-private upgrades in areas like Toa Payoh, borrow minimally to cut 5.5% interest costs—e.g., $150k loan at 5.5% = $6,875 over 6 months[1].

Homejourney: Your Safe Path to Bridging Finance

Trust Homejourney for verified rates, no hidden fees. Connect with our mortgage brokers via bank-rates page. Link properties to budgets on property search; explore projects at Projects .

Read more: Bridging Loan Singapore: Boost Approval Odds | Homejourney and Bridging Loan for Property Purchase Explained | Homejourney . Disclaimer: Rates change; consult professionals. Homejourney verifies data for confident decisions.

FAQ: Bridging Loan Singapore

1. How much bridging loan can I get?
Up to 20-25% of new property price, capped by sale proceeds (e.g., $500k net allows $400k max)[1][2].

2. What's the typical interest rate?
4-6% p.a.; UOB at 4-5%, DBS 5-6%[1][3]. Compare on Homejourney.

3. Can I use for HDB resale?
Yes, Standard Chartered offers HDB-specific at SIBOR+2%[3].

4. What if sale delays beyond 6 months?
Extensions rare; convert to term loan or face penalties. Plan with Homejourney calculator.

5. Is Singpass application safe?
Yes, Homejourney uses secure MyInfo for verified, fast approvals.

Ready to secure your bridging loan for property purchase? Start comparing bank rates on Homejourney today for a trusted, transparent process. Link back to our pillar guide for full financing strategies.