Bridging Loan

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Bridging Loan

Relocating in a better home in a small country with limited land like Singapore is a great accomplishment. However, one of the biggest obstacles for most property seekers is having enough funds for the downpayment.

In most cases, people who sold their old properties didn’t get the payment proceeds right away. That’s where our bridge loan program can help.

Bridge loans get rid of the gap between the sale of the old property to the ownership of a new one. With short term loans of up to 12 months, we can help property owners pay up their down payments to make up the shortfall.

Bridging loan is designed specifically for your property purchase needs

From scuffling through magazines, newspapers or even dialling property agents. You’ve found and yearned for this particular house that has the right amount of furnishing and is located at just the right spot.

You’ve done your research, but here comes the hard part, financing. Even upon selling your property, you would need to wait a few months before obtaining the sales proceeds. From making you hold one’s horses, this setback would subject your dream house to be sold to another ready buyer. After all, sellers are on their toes and are actively marketing their property to the highest bidder who could afford the hefty amount. If you are facing a similar predicament, a bridging loan might be the perfect solution for your cash flow needs.

What is a bridging loan?

As the term ‘bridging’ success, a bridging loan is used to fund the down payment required when upgrading or downgrading from an existing to a new property. Sales proceeds from an existing property will not flow into your account immediately. This form of loan is a short-term concealment of your current lack of capital, which can be repaid upon receiving your sales proceeds.

What kind of situation would you need a bridging loan?

Here is an example:

You are looking to purchase a 4-room landed property with at an estimated purchase price of S$1,500,000. Concurrently, you are in the process of selling your existing 5-room HDB at an estimated price point of S$800,000.

Considering the above scenario, a 5% (S$75,000) down payment would need to be deposited. Assuming a 3% – 5400 (S$39,600) stamp duty on the purchase price or valuation amount, whichever is higher. In this example, you have sufficient cash to pay for the initial down payment and stamp duty.
However, a property purchase renders the need to deposit an additional 20% (S$300,000) down payment of the property price within the next few weeks.

At the moment, you do not have access to such a lofty amount. However, facilitating the sale of your previous property would pump in an approximate S$800,000, which would be more than enough to fund the down payment. To bridge the cash flow gap, you can obtain a bridging loan to raise capital in the short-term. Other considerations:

1. Obtaining a personal loan is a vigorous process which can take a few weeks to be approved. A bridging loan is a fuss-free arrangement that will disburse the agreed amount upon submitting the relevant documents for approval. Realistically speaking, the approval process will typically take less than a week.

2. En bloc sales, referring to the purchase of a collective group of properties is often viewed as a jackpot for in the eyes of house owners. Despite the attractive profits, the developer or government may take 6 to 12 months before issuing the sales proceeds. The time gap between selling your current property and finding a new one is a short-term financial plight for homeowners. A bridging loan is built for the above situations, to raise capital for homeowners in the short run.

Types of bridging loan

1. Capitalised interest bridging loan
We will finance the full amount of your new property. Repayment on the bridging loan will commence upon finishing the sale of your previous property. You will be responsible for covering the principal amount of the loan and the interest that accrues throughout the tenure period.

2. Simultaneous repayment bridging loan
If you choose to opt for this loan, you will have to make a simultaneous payment on both your new property and repayment of the loan. A 12-months’ time frame is given for you to repay the full loan amount.


We will assess the following:

  1. Gross monthly income and debt levels. (E.g. credit card debt).
  2. Your other debt obligations such as personal loans, student loans or car loans.
  3. The estimated sales proceeds of your current property. The outstanding figure on your existing home loan and your housing type. (E.g. 5-room HDB/Condominium/Landed property).

Upon a quick and thorough review of your documents, we will advise you on the affordability rate of your desired property. Priding ourselves in transparency, our team will display an array of loan options for you to choose from. These would vary in terms of the loan period, monthly repayment, and the maximum loan amount that you are qualified for.

Note: The above list is non-exhaustive. Our customer representatives will gladly walk you through the types of documents that you need to provide.

If you are selling an existing HDB:

  1. Option to purchase (OTP)
  2. Identity card (IC)
  3. Bank account statement
  4. First appointment letter from HDB detailing the arrangement of your resale application
  5. In-principal approval letter from HDB
  6. A letter of undertaking from a law firm acting in the sale of property


Please contact our customer representative to obtain the full list of documents required if you are selling a private property or condominium.

Worry not, our team will do an in-depth review of your credit standing before letting you know on the loan amount that you are entitled to. Unfortunately, we do not accept applicants who are an undischarged bankrupt.

Each of our clients is entitled to different loan amounts with their own unique sets of terms and fees. Usually, the tenure rate will be 6 months and will cover 15% to 20% of the purchase price of your new property.

Our professionals will gladly assist in providing a no-obligatory price quotation. Besides, we will advise you on the type of loan suitable for your financial status. In an effort towards transparency of fees, late payment penalties along with administrative costs will be highlighted.

Yes, we place a firm stance on confidentiality in our firm. All of your documents and identity will not be disseminated for marketing purposes.