Why take a DBS Bridging Loan?

Competitive Home Loan Package

pegged to Prime Rate.

Easy Application

online, anytime, anywhere.

 

Purpose of a Bridging Loan

  • Short term loan of up to 6 months.
  • Applicable for the purchase of all property types
  • Helps pay for the down payment of your new property purchase while waiting for the sale proceeds from your existing property.
  • You would only need to repay the interest on the bridging loan during its loan period. Once you have received the sales proceeds from your existing property, you would need to make full payment.

Here’s an illustration to help you understand how it works:

Assume that you plan to sell your existing HDB flat to purchase a new condominium that is currently under construction. However, you would only receive the sales proceeds (in cash and CPF funds) after 5 months.


Financing a S$1,000,000 property purchase:
Down payment (5% cash) 5% x S$1,000,000 = S$50,000
Down payment
(20% cash and/or CPF funds)
20% x S$1,000,000 = S$200,000
Loan amount
(Assuming you qualify for maximum
75% Loan-to-Value)
75% x S$1,000,000 = S$750,000


Assume that you have paid the initial 5% cash down payment but have insufficient cash and/or CPF funds for the remaining 20% down payment as you are currently pending the proceeds from the sale of your existing HDB flat.

You could still proceed with the property purchase by taking up a bridging loan of S$200,000 to make up for the shortfall.

To view other home loan packages available, click here.

If you are intending to buy or sell your property, check out the DBS Property Marketplace:


If you are ready to start your home loan application journey:

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