Bridging Loan for EC Purchase Can Be Granted With A Home Loan
To be eligible for Bridging Loan for EC Purchase, the EC buyers have to opt for the deferred payment scheme.
Bridging Loan for EC Purchase At A Glance
- Bridging loan is short term.
- EC buyers are awaiting the realisation of the proceeds of sales of their existing HDB.
- It is a temporary loan to help EC buyers to tide over their short term financial needs.
- The bridging loan amount is the difference between the purchase price or valuation of the new EC, whichever is lower, and the applied home loan amount.
- To be eligible, the EC buyers have to opt for the Deferred Payment Scheme.
Following is a simple illustration for your easy reference:
| Existing Property (HDB) | |
|---|---|
| Current Market Value (based on bank's indication) | $650,000 |
| Recognised Current Market Value (75%) | $487,500 |
| Less: Outstanding Loan | $200,000 |
| Less: CPF Utilised + Accrued Interest | $250,000 |
| Cash Proceeds | $37,500 |
| Total Eligible Proceeds (Cash + CPF) | $287,500 |
| New Property (EC) | |
|---|---|
| Purchase Price | $1,000,000 |
| Eligible Bank Loan (Assuming the EC buyers able to obtain 55% loan-to-value) |
$550,000 |
| 5% Cash Payment (Option Fee) | $50,000 |
| 15% Cash or CPF (Downpayment within 9 weeks) | $150,000 |
| 5% Cash or CPF (to be disbursed during TOP) | $50,000 |
| 20% Bridging Loan Required (to be disbursed during TOP) | $200,000 |
| 40% Bank Loan (to be disbursed during TOP) | $400,000 |
| 15% Bank Loan (to be disbursed upon CSC) | $150,000 |
