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Bridging Loan for EC Purchase

Designed To Help Executive Condo Buyers To Tide Over Short Term Financial Needs Without Selling Their Existing HDB First

Short Term Bridging Loan for New Launch EC Purchase

Can Be Granted With A Housing Loan

Are you wondering how the bridging loan can help you in the process of buying a New Launch EC?

Bridging loan is not for everyone, it is designed to help those EC buyers who are not eligible to get 75% bank loan, to proceed with the EC purchase without the needs to sell their existing HDB first.

Bridging loan is the difference between the purchase price of the New Launch EC and the eligible housing loan amount. It is a short term/temporary loan that helps EC buyers to tide over their short term financial needs for the housing loan shortfalls.

To be eligible, the EC buyers have to opt for the EC Deferred Payment Scheme. Perhaps, they are awaiting the realisation of the proceeds of sales of their existing HDB. Or, they will start marketing their HDB when their new EC is almost ready for occupation. The potential proceeds of sales (Cash + CPF) of their existing HDB should be higher than the bridging loan required.

Following is a simple example to illustrate how the eligible proceeds and bridging loan are calculated and applied:

THE ELIGIBLE PROCEEDS FROM THE SALE OF THE EXISTING HDB ≥ THE BRIDGING LOAN REQUIRED

$340,000 ≥ $210,000

The Eligible Proceeds From The Sale of The Existing HDB
Existing HDB
Current HDB Market Value (based on bank’s indication) $700,000
Recognised Current HDB Market Value (75%) $525,000
Less: Existing Outstanding Housing Loan $185,000
Less: Existing CPF Utilised + Accrued Interest $217,000
Potential Cash Proceeds $123,000
Total Potential Eligible Proceeds (Cash + CPF) $340,000
The Bridging Loan Required
New Launch Executive Condo
Purchase Price $1,050,000
Eligible Bank Loan
(Assuming the EC buyers able to obtain 55% loan-to-value)
$577,500
5% Cash Payment (Option Fee) $52,500
15% Cash or CPF (Downpayment within 9 weeks) $157,500
5% Cash or CPF (to be disbursed upon TOP) $52,500
20% Bridging Loan Required (to be disbursed upon TOP) $210,000
40% Bank Loan (to be disbursed upon TOP) $420,000
15% Bank Loan (to be disbursed upon CSC) $157,500