Bridging Loan Singapore Guide: Homejourney's Complete 2025 Explainer
Bridging loan Singapore is your temporary financial lifeline when upgrading properties, covering the gap between buying new and selling old. Homejourney, prioritizing user safety and trust, delivers this exhaustive guide to bridge loan property financing, ensuring transparent decisions in Singapore's competitive market.
This pillar resource covers everything from eligibility to calculations, with real Singapore examples and Homejourney tools for verified rates and applications. Whether HDB upgrader or private property investor, secure your short term property loan wisely.
Table of Contents
- What is a Bridging Loan in Singapore?
- When Do You Need Bridging Finance?
- Types of Bridging Loans: Capitalised vs Simultaneous
- Eligibility and Documents for Bridge Loan Property
- How Much Can You Borrow? LTV Limits Explained
- Current Bridging Loan Rates from Singapore Banks 2025
- Step-by-Step Application via Homejourney
- Bridging Loan Calculations with Real Examples
- Risks, Costs and How to Avoid Pitfalls
- HDB vs Private Property Bridging Specifics
- Homejourney's Safe Tools for Bridging Loans
- Frequently Asked Questions
What is a Bridging Loan in Singapore?
A bridging loan Singapore is a short-term loan bridging the cash flow gap when purchasing a new property before selling your existing one[1][2][3]. Mandated by MAS Notice 1107, it must be repaid within 6 months, typically covering downpayments beyond LTV limits[1][10].
In Singapore's property market, where upgrades from HDB to private homes are common, this property bridge prevents missed opportunities on dream homes[4]. Homejourney verifies all data for your confident decisions, emphasizing safety in transactions.
Unlike standard home loans, bridging finance accrues interest at 5-6% p.a., pegged to prime rates or SORA, without long-term commitment[1][2]. It's ideal for HDB upgraders facing timing mismatches.
Key Features of Short Term Property Loans
- Tenure: Maximum 6 months, extendable rarely[1][5][6]
- Amount: Up to 20-25% of new property value, tied to old property proceeds[1][3][4]
- Regulation: Overseen by MAS for consumer protection[10]
- Eligibility: Singapore Citizens/PRs/foreigners selling property with good credit[2][3]
When Do You Need Bridging Finance?
You need a bridging loan for property purchase during upgrades, like selling an HDB 4-room flat in Punggol for S$600,000 to buy a S$1.2M condo in Sengkang[1][4]. Without sale proceeds, cover the 25% downpayment gap.
Common scenarios include HDB-to-private upgrades, where MAS LTV caps at 75% leave 25% uncovered[1]. Or simultaneous buys amid hot markets like 2025's cooling measures.
Homejourney's property search helps identify budget-fit options, ensuring safe timing for your bridge loan property needs.
Real Singapore Upgrade Example
Family sells Tampines HDB (S$550K proceeds expected) for Yishun private condo (S$1M). Bank loans 75% (S$750K), needs S$200K bridge for downpayment while awaiting sale[4]. Insider tip: List old property 2-3 months early via trusted agents.
Types of Bridging Loans: Capitalised vs Simultaneous
Singapore offers two main bridging finance types: Capitalised Interest and Simultaneous Repayment[2][3].
| Type | Description | Repayment | Best For |
|---|---|---|---|
| Capitalised Interest[2] | Interest added to principal; no payments until old property sells | Post-sale lump sum (6 months max) | Cash flow ease |
| Simultaneous Repayment[2][3] | Repay alongside new home loan | Monthly + up to 12 months to sell | Faster sales expected |
Choose capitalised for low stress; Homejourney compares options safely[3].
Eligibility and Documents for Bridge Loan Property
Singapore Citizens/PRs over 21 with good credit qualify, provided you're selling a property[1][2][3]. Foreigners need strong profiles too[2].
Required docs: NRIC, sale listing proof, Option to Purchase (OTP) for new property, income proofs, CPF statements[3]. MAS TDSR (60% debt cap) applies indirectly via home loan linkage[1].
Pro tip: Pre-qualify on Homejourney's bank rates page for instant eligibility checks with Singpass.
Quick Eligibility Checklist
- Selling process started (listing/agent agreement)[2]
- Age 21+, good credit score[1]
- Expected proceeds cover loan[4]
- No excessive debt (TDSR compliant)
- HDB resale approval if applicable (HDB portal)
How Much Can You Borrow? LTV Limits Explained
Bridging covers beyond 75% LTV (bank loans) or 80% (HDB), up to 20-25% of new purchase price, capped by old property proceeds[1][3][4]. Bank won't bridge first 1% OTP deposit[1].
Example: S$1M condo, 75% LTV = S$750K loan. 5% cash (S$50K) + 20% bridge (S$200K). Excess proceeds reduce future loan[4].
Homejourney's calculator at mortgage calculator simulates precisely.
Current Bridging Loan Rates from Singapore Banks 2025
Rates range 5-6% p.a., pegged variably[1][2]. DBS: Prime (4.25%) + margin[1]; Standard Chartered HDB: 3M SORA + 2.50%[1].
| Bank | Rate Peg | Max Amount | Tenure |
|---|---|---|---|
| DBS/POSB[1][5][6] | Prime ~5-6% | 20% purchase price | 6 months |
| Standard Chartered[1][8] | 3M SORA +2.5% | Per proceeds | 6 months |
| UOB[7] | Competitive ~5% | 20% | 6 months |
| OCBC, HSBC, Maybank etc. | Varies 5-6% | Up to 25% | 6 months |
Compare live rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank on Homejourney bank rates, tracking SORA in real-time.
Step-by-Step Application via Homejourney
1. Confirm sale listing and new OTP.
2. Check eligibility on Homejourney.
3. Submit via Singpass for multi-bank offers.
4. Receive approval in days.
5. Funds disbursed for downpayment[2].
Homejourney's one-click multi-bank submission (DBS to Citibank) with MyInfo auto-fill ensures speed and security.
Bridging Loan Calculations with Real Examples
For S$1.2M condo, 75% LTV S$900K loan, 5% cash S$60K, bridge S$240K at 5.5% p.a.[1]. Monthly interest ~S$1,100 (capitalised).
6-month cost: S$6,600 interest. Repaid from S$700K HDB sale proceeds[4].
Original insight: In 2025's 3M SORA ~3%, opt SORA-pegged for savings vs fixed prime. Use Homejourney calculator for custom sims.
Equation: Interest = Principal × Rate × Time, e.g., \( 240000 \times 0.055 \times 0.5 = 6600 \).
2025 HDB Upgrade Scenario: Punggol to Sengkang
Sell 5-room HDB S$650K (net S$500K post-fees). Buy S$1.5M condo. Bridge S$300K @5.75% = S$8,625 interest over 5 months. Total cost low if sells fast.
Risks, Costs and How to Avoid Pitfalls
Risks: High interest if sale delays; dual loans strain cashflow[3]. Pitfalls: Overborrowing beyond proceeds, ignoring TDSR[1].
Costs: Processing fees ~0.5-1%, legal fees, agent commissions. Disclaimer: Not financial advice; consult professionals.
Homejourney verifies data, offers WhatsApp support for safe navigation.
- Tip: Price old property competitively (URA data via Projects )
- Buffer 1-2 months sale time
HDB vs Private Property Bridging Specifics
HDB bridging: 80% LTV, HDB approval needed, Standard Chartered special[1][8]. Private: 75% LTV, faster but stamp duties apply (ABSD for seconds).
Upgraders: Use CPF for repayment, MSR caps. See New Launch vs Resale Mortgage: Homejourney Benefits 2025 for new vs resale insights.
Homejourney's Safe Tools for Bridging Loans
Trust Homejourney for transparent bridging loan Singapore support:
- Live rates: DBS, OCBC, UOB+ at bank-rates
- Calculator: Affordability + bridge sims
- Singpass apps: Instant verification
- Multi-bank: One form, multiple offers
- Post-purchase: Aircon Services for maintenance
Our feedback-driven platform ensures verified, safe journeys.
Frequently Asked Questions
What is the maximum tenure for a bridging loan Singapore?
6 months maximum per MAS rules[1][5][6].
Can foreigners get a bridge loan property?
Yes, with good credit and sale proof[2].
How much does a short term property loan cost?
5-6% p.a. interest, e.g., S$10K on S$400K over 6 months[2].
Is bridging finance available for HDB?
Yes, specialised HDB bridging loans exist[1][8].
Can I use CPF for bridging loan repayment?
Yes, from sale proceeds via CPF refund[1].
What if my property doesn't sell in 6 months?
Extensions rare; prepare contingency cash[3].
How to compare bridging loan rates?
References
- Singapore Property Market Analysis 1 (2025)
- Singapore Property Market Analysis 2 (2025)
- Singapore Property Market Analysis 3 (2025)
- Singapore Property Market Analysis 10 (2025)
- Singapore Property Market Analysis 4 (2025)
- Singapore Property Market Analysis 5 (2025)
- Singapore Property Market Analysis 6 (2025)
- Singapore Property Market Analysis 8 (2025)
- Singapore Property Market Analysis 7 (2025)
