Bridging Loan

[froggy 0]

1. Talk to your buyer, pay him rental, to tide over this period (1 wk cpf transfer after + 2 months reno),ie you stay at your unit after 2nd appt.

2. Bridging loan amount varies between 15% to 20% of valuation, and validity(bridging period) lasts for 6 months. Interest usually charged at prime rate + 5-6% per annum based (~ 10%-12% pa). Say 20% = 80k, interest = 80,000x0.1 = 8K for one yr, 6 month will be 4K. Above is a rought estimation only & is how the bridging loan work. However, some banks would just charge a fixed amount, say 1K, after you present all related doc and bank calculate & know their shorest time to get back their loan principal.

Thanks Bepgof

Ha ha ... we are so blur that we agree to let buyer move in early!?!?!

So angry with our agent, she knows our situation, yet not only did not advice us to extend stay from buyer, when buyer's agent asked if buyer can move in early, she did not highlight to us. And we are nice enough (more like naive and stupid) to say, "ya, sure..." , so option 1 is not possible.

option 2 - do you mean that bridging loan can only be max 20% of valuation? Say if mine is a new flat from HDB and I have paid 10% when booking, I cannot take the balance 90% as bridging loan? If the max is 20%, I don't think this option will work for us also.

thanks

[bepgof 20]

Dunno, we blur blur never ask anything, they didn't say anything, so now we "stranded" and got to find own arrangement.

1. Talk to your buyer, pay him rental, to tide over this period (1 wk cpf transfer after + 2 months reno),ie you stay at your unit after 2nd appt.

2. Bridging loan amount varies between 15% to 20% of valuation, and validity(bridging period) lasts for 6 months. Interest usually charged at prime rate + 5-6% per annum based (~ 10%-12% pa). Say 20% = 80k, interest = 80,000x0.1 = 8K for one yr, 6 month will be 4K. Above is a rought estimation only & is how the bridging loan work. However, some banks would just charge a fixed amount, say 1K, after you present all related doc and bank calculate & know their shorest time to get back their loan principal.

Edited May 2, 2010 by bepgof

[froggy 0]

There are many banks, give them a call. They will be more than willing to offer.

But why didn't HDB offer contra? Contra will be cheaper.

Dunno, we blur blur never ask anything, they didn't say anything, so now we "stranded" and got to find own arrangement.

[chronograph 0]

Dear all

Need some advice from you about bridging loan. The story goes ..

I sold my house, now waiting for first appointment with HDB.

Meanwhile my new flat is ready for collection (ie keys)

BUT I cannot collect keys because I have to complete second appt before funds go back to CPF, then CPF transfer to HDB then they can give me keys.

In my case, we are downgrading, so the sale of current flat should be enough to cover for new flat purchase, so did not take a loan.

Problem is (which we are so sotong to overlook), it takes a few weeks after 2nd appt for funds to go back to CPF. By then, we would already be out of the house, so need to rent To make things worse, reno will take 2 months, so more rent

It never occured to us before, but are we eligible to take a bridging loan from the bank? Can we take bridging loan of the 90% of purchase price (since we are not taking mortgage loan, HDB require that we pay in full) for 2 to 3 months? If we can do this, that means we can start reno and hopefully second appt coincide with the time reno is done, so no headache of moving, storing, then moving again!

Any idea what is a good bank to go for such arrangement?

Thank you so much!

There are many banks, give them a call. They will be more than willing to offer.

But why didn't HDB offer contra? Contra will be cheaper.

[froggy 0]

Dear all

Need some advice from you about bridging loan. The story goes ..

I sold my house, now waiting for first appointment with HDB.

Meanwhile my new flat is ready for collection (ie keys)

BUT I cannot collect keys because I have to complete second appt before funds go back to CPF, then CPF transfer to HDB then they can give me keys.

In my case, we are downgrading, so the sale of current flat should be enough to cover for new flat purchase, so did not take a loan.

Problem is (which we are so sotong to overlook), it takes a few weeks after 2nd appt for funds to go back to CPF. By then, we would already be out of the house, so need to rent To make things worse, reno will take 2 months, so more rent

It never occured to us before, but are we eligible to take a bridging loan from the bank? Can we take bridging loan of the 90% of purchase price (since we are not taking mortgage loan, HDB require that we pay in full) for 2 to 3 months? If we can do this, that means we can start reno and hopefully second appt coincide with the time reno is done, so no headache of moving, storing, then moving again!

Any idea what is a good bank to go for such arrangement?

Thank you so much!