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i need some enlightenment from any experts here with regards to bridging loan for resale hdb flat.
eg. i buy a resale flat worth 380k
i need to do a contra with my existing flat at 320k N transfer the OA to complete the new purchase. There will be no loan involved. any balance will be paid by cash.

incase if my cpf proceed is not in time, can i borrow bridging loan and how does it work for my case to tide through the period whilst waiting for the OA to be back into my cpf?
Thank you
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5 Answers

Hi, I would be most glad to assist you further and pls feel free to let me know if you need any assistance. Hope to hear from you soon and have a great week ahead.

Regards
Aaron Chong
 9730 8455 
aaronchong2774@yahoo.com.sg Read More
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Dear sir/mdm,

The timing of sale completion to happen about 3 weeks before the purchase completion should be able to address the CPF flow issue, unless there is something else you have not shared that can potentially jeopardise this arrangement.

Warmest regards,
Geryl Lim
Associate Deputy Group Director
Salesperson Registration No. R014783H
Email: geryl.lim@orangetee.com / geryl7772@gmail.com
OrangeTee & Tie Pte Ltd 430 Lorong 6 Toa Payoh #01-01 OrangeTee Building Singapore 319402
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Hi

I completely understand your situation and concern on this. Normally for bridging loans, banks will provide a loan up to a maximum of 6 months to 12 months and will normally require a proof that you have purchased a flat in the form of OTP. From HDB resale, I will normally avoid a situation where my client have to take up a bridging loan by planning the timeline carefully even if it is not probable for you to do a contra on the transaction. This is due to the hefty interest rates charged by banks and the financial repercussions of having to finance 2 houses at one time. Do contact me at 93375051  for a free and non obligatory discussions on this.

Regards
Taufik Hussein
ERA Realty Network Pte Ltd Read More
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Dear Sir/Mdm,

If you are paying the balance by cash, then there is no need for you to take a bridging loan and waste on the interests incurred. We just have to plan the sale and purchase back to back such that the CPF funds have enough time to flow from your current flat back to your OA and subsequently to the new flat that you are purchasing.

I have assisted many of my clients to plan their sale and purchase in such a manner. Please feel free to contact me so that I can explain the timeline to you in detail.

Regards,
Nick Tan
(M) +65 9644 4854 
B.Eng(Chemical)(Hons)(NUS) / Cert-in-REA
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Hi,

For such a scenario, it seems like there is no need to get a bridging loan and waste on interest costs, as you just need to time the sale to be completed 2 weeks before completion of the purchase. This would allow more than sufficient time for CPF monies and cash proceeds to come back to you, so as to complete the purchase.

May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,

Ivan Ng Realtor
ERA Senior Marketing Director
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