Bridging Loan for Property Purchase Explained: Benefits of Applying via Homejourney

A bridging loan Singapore is a short-term property bridge finance option that covers the gap when buying a new home before selling your current one. It funds downpayments and costs for HDB or private properties, repayable within 6 months from sale proceeds.

Homejourney simplifies this with multi-bank applications, Singpass integration, and real-time tracking, ensuring a safe, trusted process.

What is a Bridging Loan in Singapore?

In Singapore, a bridging loan for property purchase helps buyers upgrade or downgrade homes without timing sales perfectly. For example, if upgrading from an HDB flat in Punggol to a condo in Tampines, you might need funds for the new $1.2 million purchase's 25% downpayment before your old flat sells.

Banks like DBS, OCBC, UOB, HSBC, and Standard Chartered offer these short term property loans. You can borrow up to 25% of the new property's price, beyond your Loan-to-Value (LTV) limit, as long as sale proceeds cover repayment. Interest rates range from 4-6% p.a., higher than standard home loans due to the short tenure.

This aligns with MAS regulations, where bridging loans must be fully repaid within 6 months. Homejourney's platform lets you compare rates from these banks instantly at https://www.homejourney.sg/bank-rates.

Key Benefits of Bridging Loans for Property Buyers

Bridging finance provides quick access to funds, often approved same-day by banks like UOB. No out-of-pocket cash for downpayments if proceeds suffice, ideal for time-sensitive buys like new launches.

Other perks include flexibility for HDB-to-private upgrades and coverage of stamp duties or legal fees. However, higher costs mean borrowing only what's needed—typically 20% of purchase price.

Real example: A family selling a $800,000 Yishun HDB for a $1.5 million Sengkang condo uses a $300,000 bridge loan at 5% interest. After sale, excess proceeds fund the permanent mortgage seamlessly.

Why Apply for Bridging Loans via Homejourney?

Homejourney prioritizes user safety with verified bank partnerships and transparent processes. Skip bank queues—submit one Singpass-enabled application to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, and Citibank.

Auto-fill income, CPF, and employment data instantly. Compare side-by-side offers and track status in-app. Our eligibility calculator at https://www.homejourney.sg/bank-rates#calculator shows borrowing power pre-application.

Users report 30% faster approvals via our multi-bank system, building trust through feedback-driven improvements. For full details, see our pillar guide: Bridging Loan Singapore: Complete Guide for Property Buyers | Homejourney .

Step-by-Step Guide to Applying for a Bridging Loan

Follow these actionable steps for a smooth bridge loan property process:

Verify Eligibility: Singapore Citizens/PRs over 21 with a property under sale. Good credit score required. Use Homejourney's calculator first.
Gather Documents: Sale agreement, Option to Purchase, income proofs (last 3 months payslips), CPF statements, NRIC. Singpass simplifies this.
Calculate Needs: For a $1M condo at 75% LTV ($750K home loan), bridge $200K (20%) + $50K cash portion.
Apply via Homejourney: At https://www.homejourney.sg/bank-rates, one form reaches multiple banks.
Await Approval: 1-7 days. Interest capitalizes until sale.
Repay on Sale: Within 6 months; excess proceeds go to you.

Avoid pitfalls: Don't overborrow—interest accrues daily. Time your sale listing on https://www.homejourney.sg/search.

Documentation Checklist for Bridging Loan Approval

Proof of existing property sale (e.g., Option to Purchase or Sales Agreement).
Income documents: Latest payslips, tax assessments, employment letter.
CPF statements (last 12 months) via Singpass.
New property purchase documents: Option Fee receipt, Sale & Purchase Agreement.
Bank statements (3-6 months) for financials.
NRIC (front/back) and proof of relationship if joint applicants.

Pro tip: Scan digitally before applying on Homejourney—auto-uploads speed processing by 50%.

Interest Rates and Trends for Bridging Loans

Bridging loan rates tie to SORA or fixed margins, averaging 4-6% p.a. (e.g., UOB 4-5%, Standard Chartered 3M SIBOR +2%). Higher than home loans (around 3-4% SORA-based) due to risk.

The chart below shows recent interest rate trends in Singapore:

As seen, rates stabilized post-2025 hikes. Time applications when SORA dips for savings. Compare live rates on Homejourney.

Pro Tips to Boost Bridging Loan Success

Apply from the same bank as your home loan for seamless processing.
Pre-list your property—agents confirm sales boost approvals.
Joint applications? Check our guide: Joint Home Loan Application Complete: Homejourney Benefits .
Monitor rates: Use Homejourney for bank comparisons Bridging Loan Singapore: Bank Rates Comparison Guide | Homejourney .
Disclaimer: Rates vary; consult Homejourney brokers for personalized advice. Not financial advice.

For approval odds, read Bridging Loan Singapore: Boost Approval Odds for Property Buys | Homejourney . Post-purchase, explore maintenance via Aircon Services .