Bridging Loan Singapore: Complete Guide for Property Buyers | Homejourney

The definitive pillar guide to bridging loan Singapore, bridge loan property, and short term property loan options for safe property upgrades.

Homejourney prioritizes your safety and trust in every property transaction. This comprehensive guide covers bridging finance and property bridge loans exhaustively, drawing from official MAS regulations, bank offerings, and real Singapore market data. Whether upgrading HDB flats or private properties, understand costs, eligibility, and strategies to avoid pitfalls.

With Singapore's competitive property market, bridging loans help thousands bridge the gap between selling old homes and buying new ones annually. Homejourney verifies all information for confident decisions.

What is a Bridging Loan in Singapore?
When Do You Need a Bridging Loan?
Types of Bridging Loans Explained
Eligibility and Documents Required
Bridging Loan Interest Rates and Costs
How to Apply for a Bridging Loan
HDB vs Private Property Bridging Loans
Risks and Common Pitfalls
Homejourney Tools for Safe Bridging
Frequently Asked Questions (FAQ)

What is a Bridging Loan in Singapore?

A bridging loan Singapore is a short-term loan that 'bridges' the financial gap when buying a new property before selling your existing one. It funds downpayments or full payments on the new home while awaiting sale proceeds from the old property.[1][2]

Regulated by MAS Notice 633 for banks and Notice 1107 for merchant banks, these loans typically last 6-12 months with high interest rates of 5-6% p.a.[1][6][7][8] Unlike standard home loans, they are asset-backed by your properties and not always subject to TDSR limits.[4]

In Singapore's market, where HDB resale flats average S$500,000-S$800,000 and condos S$1.5M+, timing mismatches are common. Bridging loans provide quick access to funds, often approved in days.[3][4]

Key Definition: Bridging loan = Short-term finance for property purchase, repaid from sale proceeds of existing property.[1]

When Do You Need a Bridging Loan for Property Purchase?

You need a bridging loan when your new property purchase completion date precedes your old property's sale. Common for HDB upgraders or private property investors facing tight timelines.[1][2]

Real example: You're selling a 4-room HDB at Sengkang for S$650,000 (expected proceeds S$400,000 after loan repayment) but must pay S$1.2M for a new Toa Payoh condo in 8 weeks. Bridge the S$300,000 gap (25% downpayment).[1]

Other scenarios:

Auction purchases with 4-week deadlines.
En-bloc sales delaying proceeds 6-12 months.[3]
Investors flipping properties quickly.

Homejourney's property search helps identify budget-aligned options to minimize bridging needs.

Singapore Market Context (2026)

With cooling measures like ABSD and LTV limits, buyers often downsize or upgrade strategically. HDB Minimum Occupation Period (MOP) forces bridging for those ineligible for HDB loans.[2]

Types of Bridging Loans Explained

There are two main types: Capitalised Interest and Simultaneous Repayment.[1]

Type	Description	Best For	Interest Handling
Capitalised Interest	Covers full new property amount; no repayments until old home sells.[1][3]	Low cash flow buyers	Interest capitalised (added to principal)
Simultaneous Repayment	Repay bridging loan alongside new home loan monthly.[1]	Strong income, short bridge (3-6 months)	Monthly interest payments

Capitalised suits most, avoiding dual loan strain. Standard Chartered offers HDB bridging at 3M SORA +2.50% p.a. with no monthly instalments.[2]

Eligibility and Documents for Bridging Loans

Eligibility: Singapore Citizens, PRs, foreigners selling Singapore property with good credit.[1] Property as collateral; banks assess saleability.

Required documents:

Option to Purchase (OTP) for new property.[1]
CPF withdrawal statements.
Outstanding bank loan statements.
Property valuation report.
Income proof for TDSR (if applicable).[1]

Loan quantum: Up to 25% of new property price, covered by old property proceeds. Not subject to standard LTV for short-term.[1][4]

Insider tip: Get professional valuation early; overestimating old property value risks default.[1]

Bridging Loan Interest Rates and Total Costs

Rates: 5-6% p.a., higher than home loans (SORA ~3-4%).[1] E.g., Standard Chartered: 3M SORA +2.50%.[2]

Costs breakdown:

Interest: 5-6% p.a. on borrowed amount.
Processing fees: Often none (e.g., SC).[2]
Legal fees: S$2,000-S$5,000.
Valuation: S$500-S$1,500.

Example calculation: S$300,000 bridge for 6 months at 5.5% p.a. = S$8,250 interest (capitalised).[1]

SORA is key benchmark. The chart below shows recent interest rate trends in Singapore:

As seen, SORA volatility impacts bridging costs. Track live on Homejourney bank rates.[2]

Cost Comparison Table

Loan Amount	Tenure	Rate 5.5%	Total Cost
S$200,000	6 months	5.5% p.a.	S$5,500
S$300,000	12 months	5.5% p.a.	S$16,500
S$500,000	6 months	5.5% p.a.	S$13,750

Compare DBS, OCBC, UOB rates on Homejourney for best deals.

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

1. Confirm timelines: New purchase vs old sale.
2. Get property valuations.
3. Gather documents (OTP, statements).[1]
4. Apply via banks or platforms like Homejourney.
5. Approval in 1-3 weeks; funds in days.[3]

Homejourney simplifies: Use bank-rates to compare DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank. Apply to multiple banks with one click via Singpass.[2]

Actionable: Calculate eligibility at Homejourney calculator before committing.

HDB vs Private Property Bridging Loans

HDB bridging: For flats under HDB rules; e.g., Standard Chartered HDB-specific.[2] Private: Higher flexibility, up to 75% LTV for foreigners.[5]

Differences:

HDB: CPF usage strict; MOP compliance.
Private: En bloc, auctions common.[3][5]

Both under MAS; HDB often cheaper fees. Use Homejourney's projects directory for market insights.

Risks, Pitfalls, and Mitigation Strategies

Risks: High costs if sale delays; property as collateral risks foreclosure.[1] Bad credit often denied.[1]

Pitfalls:

Overvaluing old property.[1]
Ignoring TDSR on new loan.
Market downturns delaying sales.

Mitigate: Sell first if possible; use Homejourney for verified market data. Insider tip: Price old HDB 5-10% below market for quick sale in areas like Punggol.

Disclaimer: Bridging loans carry risks; consult professionals. Homejourney provides tools, not financial advice.

Homejourney Tools for Safe Bridging Loan Decisions

Homejourney builds trust through transparency:

Compare rates: DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB at bank-rates.
Calculator: Instant eligibility at mortgage calculator.
Multi-bank apply: One form, Singpass auto-fill.
Track SORA: Real-time rates.

Post-purchase, explore aircon services for maintenance. For joint applications, see Joint Home Loan Guide.

Bridging Loan Singapore FAQ

Q: How much can I borrow with a bridging loan Singapore?
A: Up to 25% of new property price, backed by old property proceeds.[1]

Q: What are current bridge loan property rates?
A: 5-6% p.a., e.g., 3M SORA +2.50% from Standard Chartered.[1][2]

Q: Can foreigners get short term property loan?
A: Yes, if selling Singapore property; up to 75% LTV first loan.[5]

Q: Is bridging finance worth the cost?
A: Yes for time-sensitive buys; weigh vs renting interim.[1][3]

Q: Bridging loan for HDB resale?
A: Yes, for downpayment while selling current flat post-MOP.[2]

Q: What if my property doesn't sell?
A: Extension possible but costlier; plan conservative timelines.[1]

Q: How does Homejourney help?
A: Compare rates, calculate, apply safely at Homejourney bank-rates.

Ready for your property journey? Start with Homejourney's bank rates comparison for the best bridging loan Singapore options. Our verified tools ensure safe, transparent transitions.