Bridging Loan for EC Purchase Can Be Granted With A Home Loan
To be eligible, the EC buyers have to opt for the Deferred Payment Scheme.
Bridging Loan for EC Purchase At A Glance
- Bridging loan is short term.
- It is a temporary loan to help EC buyers to tide over their short term financial needs while they await the realization of the proceeds of sales of their existing HDB.
- 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|
|Total Eligible Proceeds (Cash + CPF)||$287,500|
|New Property (EC)|
|Eligible Bank Loan|
(Assuming the EC buyers able to obtain 55% loan-to-value)
|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|