Bridging Loan for Property Purchase Explained: How to Improve Approval Chances

A bridging loan Singapore is a short-term property bridge finance option that covers your downpayment on a new home before selling your current one. To improve approval chances, maintain a strong credit score, provide proof of your existing property sale, and apply through trusted platforms like Homejourney for multi-bank comparisons.[1][2]

This cluster article dives into tactical steps for securing a bridging finance approval, building on our pillar guide to Singapore home loans. At Homejourney, we prioritize your safety with verified bank partnerships and transparent processes, helping you bridge confidently to your next property.

What is a Bridging Loan in Singapore?

A bridge loan property or short term property loan lets buyers commit to a new purchase—HDB resale, private condo, or EC—while awaiting sale proceeds from their existing home. Banks like DBS, OCBC, UOB, and Standard Chartered offer these up to 6 months, typically covering 20% of the new property's price for downpayments.[1][3][6]

For example, upgrading from a 4-room HDB in Punggol valued at S$800,000 to a S$1.2 million condo in Sengkang? Your LTV might limit the main home loan to 75% (S$900,000), leaving a S$240,000 gap. A bridging loan fills this using your old flat's expected proceeds as security.[1][4]

Homejourney simplifies this: Use our bank-rates page to compare rates from DBS, OCBC, UOB, HSBC, and more, then apply via Singpass for instant data autofill.

Eligibility Criteria for Bridging Loans

Singapore Citizens, PRs (over 21), and some foreigners qualify if selling a property in Singapore. Key requirements: good credit score, proof of sale (e.g., exercised OTP on old property), and capacity to repay within 6 months.[1][2][5]

Income stability: Banks assess via latest payslips and tax assessments.
LTV limits: MAS caps at 75% for banks (85% HDB-concessional); bridging covers the rest up to sale proceeds.[4]
Property types: HDB flats, private residential, condos—all eligible.[1][3]

CPF Board confirms bridging loans are allowed while awaiting refunds, as long as HDB approves for flats.[8] Check your eligibility instantly on Homejourney's mortgage calculator.

Documents Needed: Complete Checklist

Prepare these for swift approval—banks process faster with complete files.[1][2]

Option to Purchase (OTP): For new property, exercised OTP for old one.
Proof of sale: Sale agreement or listing with valuer's report.
Income docs: Latest 3 months' payslips, IR8A, bank statements.
CPF statements: Latest withdrawal/sale proceeds estimates.
ID: NRIC or passport.
Existing loan statements: Outstanding balances.

Pro tip: Scan digitally and upload via Singpass on Homejourney—one application reaches DBS, UOB, HSBC, Standard Chartered, Maybank, and others simultaneously.

Current Bridging Loan Interest Rates and Trends

Rates are higher than home loans: UOB 4-5% p.a., Standard Chartered 3M SIBOR +2%, DBS/OCBC pegged to prime (around 4-5% in 2026).[1][3][4] Tenure: max 6 months, interest-only during period, full repayment from sale proceeds.

The chart below shows recent interest rate trends in Singapore:

As seen, SORA-based rates fluctuate—time your application when rates dip. Track live on Homejourney's bank-rates.

Step-by-Step: How to Apply and Improve Approval Chances

Follow these actionable steps to boost odds from 70% to over 90% (based on strong profiles).[2]

Valuate properties accurately: Get URA valuation for old home—overestimation risks denial. Use Homejourney's projects directory for comps.
Check credit (CTOS): Score above 1500 ideal; pay down debts first.
Crunch numbers: Ensure sale proceeds cover loan + interest (e.g., S$200k loan at 4.5% = S$4,500/month interest).
Apply multi-bank via Homejourney: Skip one-by-one hassle; our platform sends to 10+ partners like CIMB, RHB, Public Bank.
Provide extras: Add 3-month bank statements, employer letter for stability.
Follow up weekly:

Insider tip: Apply from the same bank as your existing loan for faster nods—e.g., if OCBC holds your current mortgage, start there.[1] Avoid capitalised interest types if cashflow tight; opt for simultaneous repayment.

Common Pitfalls and Pro Tips

Pitfall: Delays in old property sale—have backup cash/CPF ready.[1]
Tip: For HDB upgraders, confirm with HDB portal; bridging allowed pre-sale.[8]
Pitfall: High LTV on new buy—keep under 90% total financing.
Tip: Decouple if joint owners; see our decoupling guide.

Disclaimer: Rates/fees vary; consult Homejourney mortgage brokers for personalized advice. Not financial advice—verify with banks.

Why Choose Homejourney for Your Bridging Loan?

Homejourney builds trust with verified rates, Singpass integration, and side-by-side offers. Calculate affordability, apply once, track progress—all in a safe platform prioritizing your data security. Post-purchase, explore aircon services for maintenance.

Link to our pillar: Bridging Loan for Property Purchase Explained.

FAQ: Bridging Loan Singapore

Q: How much can I borrow?
A: Up to 20-25% of new property price, capped by old property proceeds (e.g., S$200k-300k typical).[1][2][9]

Q: What's the repayment timeline?
A: Max 6 months; full principal + interest from sale/CPF/cash.[3][4]

Q: Can foreigners apply?
A: Yes, with good credit and proof of sale, but stricter checks.[2]

Q: HDB or private property?
A: Both; HDB needs HDB nod.[1][8]

Q: How to compare rates?
A: Use Homejourney's bank-rates for DBS to Citibank instantly.

Ready to secure your bridging loan for property purchase? Start with Homejourney's calculator today and improve your approval chances. Search properties at property-search.