Singapore is one of the most extensive cities exclusively known for its ultra-modern and luxurious lifestyle. As per the 2021 census, nearly 1.40 million households are in Singapore. Besides, over 1.01 million HBD properties are available in the city. It is a dream for many to live in a high-class location like Singapore.
If you are residing here, Bridging Loan Singapore can assist in financial aid for paying for your dream property. Though relatively unfamiliar to Singapore's residents, this service is gaining wide attention from homeowners.
Several legal and trustworthy money lenders offer an exclusive range of services, including bridging loans. However, it is crucial to understand the basics before you apply for a bridging loan.
Understanding A Bridging Loan
These are short-term loans that are provided either by banks or money lenders. Such loans assist you in providing financial aid for the " bridge gap " period. A bridge gap is between selling your old house and purchasing your new one. Simply put, a bridging loan in Singapore lets you pay the downpayment for your new property.
Since Singapore is among the most popular tourist destinations and a city full of skyscrapers, more and more people wish to acquire more than just one property here. Furthermore, located on the Malay Peninsula, the city is home to several attractions, including Sentosa Island, Universal Studio Singapore, the National Museum of Singapore, Marina Bay Sands, and many more, which makes it a prime location for homeowners.
Working Of A Bridging Loan
Suppose you own a property and are simultaneously thinking of purchasing a new property without the former being sold; you would surely need to pay the downpayment to acquire the new household. For this purpose, bridging loans act as a financial credit for paying off your downpayment to bridge the gap between selling your older home and purchasing your new home.
Several reliable credit-providing companies allow you to repay the bridging loan in small installments. Moreover, they provide in-person consultation to give you the best advice for your financial concerns.
Benefits Of A Bridging Loan
Now that you have learned what a bridging loan is and how it works read below to learn the top four benefits of getting this credit.
- No Down Payment For Initial Months
This financial credit lets you pay no down payment for the initial months, i.e., it covers the payment for the period between the purchase of your new property and the sale of your old property. Further, the interest rates are not very high and are equal to the standard bank rates. - Easy To Avail
You are not required to undergo a very complex procedure or a long time to avail of a bridging loan. Such loans are generally approved within a period of 48 hours. - Simple Lending Requirements
The eligibility criteria for getting a bridging loan are quite simple. Generally, to avail of this credit, you must be above 18 years of age, and your minimum salary must be SGD1,500. Besides, you also need to have exercised the option of OTP, i.e., Option To Purchase. In addition, you require a few common documents, such as your identity card, proof of employment and residence, and a SingPass. - Offers Flexibility
Using such loans is not only restricted to free-standing houses. Bridging loans cover all properties, including plots, farms, warehouses, apartments, and flats. Thus, it is considered a quite flexible option.
Conclusion
Singapore is a dream city for everyone to live in. Who would want to miss a golden chance to live in another house at this location? This task is made easier by bridging loans that act as financial credit for the downpayment of your new property until your older house is sold. Various trusted money lenders provide bridging loans at standard interest rates and with minimal credit requirements.
