How A Bridging Loan Can Aid You In Sale Of Old Property

A bridging loan can be a short term loan that is used as the bridge between the monetary gap and sale of the old property. In Singapore, there are different facilities of bridging loans to fulfill the demand. When a person thinks about to sale his property in Singapore, then he also thinks about new property. In this case, he requires a lot of money. These designs help the people of Singapore to purchase new property.

These loans are repaid within 6 months. As we know that the bridging loan can be used to finance the renovation. The Property Bridging Loan Singapore can help you to borrow 15 % of the purchase price of your property.

There are different options to purchase the documents. It is the contract for the specific property which can give you to purchase it. Different banks in Singapore can provide property bridge loans in Singapore.

You may have to pay the interest rate of 5-6 % per annum. One important thing to consider that you cannot apply mortgage loans and bridge loans from different banks.

The bridging loans are very expensive as you have to pay a higher interest rate.

There are two types of bridging loans.

  • Capitalized Interest Bridging Loans
  • Simultaneous Repayment Bridging Loans

Capitalized Interest Bridging Loan is activated only after the sale of your property. The bank will finance the amount of new property. You will pay the entire principal and interest rates.

In Simultaneous Repayment Bridging Loan, you have to pay the payments of the new home and bridging loans. There will be time frames of 12 months.

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