Bridging Loan for EC Purchase

Designed to help Executive Condo buyers complete the purchase of a New Launch EC before selling their existing HDB

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
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)
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

The proceeds from the sale of the existing property should be ≥ the total Bridging Loan required

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