Bridging Loan

Bridging loans are a short-term funding solution. Usually mortgage loan is only provided for buying a new real estate or renovation costs but there are bridging loan available. While research more information about different types of loans, there are new term appear into your library. The new phrase which is bridging loan.

 

What are bridging loans and how do they assist you?

Firstly, bridging loans are created to assist people accomplish the purchase of a new home before selling their currently house by providing them s short term loan at high rate of interest.

Besides that, the loan can helping home movers when there is a interval between sale and finish dates. In addition, this bridging loan also can let you arrange house to sell on instantly after renovating the home, or assist you purchase at auction.

As result of bank and other financial institution have grown more reject to lend in this economic crisis. There are growing of bridging money lenders into the market.

In fact, the interest rate of bridging loan is high can there can be charge the administration fees. Eventually the loan borrowers are caution there is a risk of venture only in the case that you carry on with extremely carefully.

Indeed, bridging loans are created to assist people accomplish the process of purchase of a real estate before selling their current house by supply them with short term cash advanced at a high rate of interest.

 

Who are bridging loans target at?

Familiarly, the bridging loans are target at property owner and amateur property developers, including those purchasing at  action where a housing loan is needed immediately. The advantages of the bridging loan is assist people while facing in a specific set of condition. While you need cash to make the down payment just the timing of the process is cause they short falling on money. Hence, bridging loan is the best option to settle this condition.

 

Timing to apply bridging loans?

Actually bridging loans can be apply for various purpose, such as property investment, buy to let and evolution. Nevertheless, recently the bridging loan growing among licensed money lender. This is because the bank and others financial institution are taking longer to process of application for housing loans.

In addition, most of the applicant also research on the bridging loans as a simple another mainstream lending. However, if you consider about to apply the loan, you need to consider carefully regarding your outfall strategy. For example, related to obtain a main housing loan or a buy to let housing loan, or selling the property all together.

 

Residential Bridging Loans

Particularly, bridging loans also can bring forward in alternative way. We called as residential bridging loan, borrowers can apply as short term finance to settle your existing property as the deposited until the property sale out. Frequently, the residential bridging loan is utilize for improve your existing property. In case it necessary to do some minor restore to get the house sale.

In fact some of the real estate must doing some necessary renovation in order to attracting a buyer. The renovation is need some money you may make use of this bridging loan. Hence, bridging loan offers you a chance to increase your future benefit. A lot of real estate owner apply bridging loan to sort it out. A lot of the property owner not enough cash flow to running the renovation on the house before selling it.

With applying this bridging loan, you can retain your finances in check and use the future revenue that you plan to get from selling your current real estate to cover the spending.

 

– Benefit of bridging loan

  1. Flexible repayment
  2. While the repayment tenure pay for service interest
  3. Repayment the principal after you receive loan from your current property.
  4. Lowest interest rate charges
    ( There are some rules and regulation apply. )

 – Eligibility and Qualification

  1. Singaporeans/Permanent resident (PR)
  2. Aged between 21 to 65 by Ministry of Law
  3. Minimum annual income with S$30,000 and above
  4. Minimum bridging loan amount to loan is S$30,000
  5. Maximum bridging loan amount to loan is  S$300,000
  6. Proven of sale for the current property
  7. Bridging loan must apply simultaneously with home loan for new purchase
  8. Applicant must pay at least 5% cash down payment using their own money

 – Charges (all moneylender may vary)

  1. No extra processing fees
  2. There are additional charges cause by overdue.
  3. No prepaid charges or cancellation fees

 – Required Document

Application form must attach with all required documents.
(originals must bring together for verification)

If current property to be sale is a HDB

  1. Selection to purchase for current property
  2. Most recent CPF withdrawal statement for current property
  3. Most recent bank account statement that HDB showing latest loan balance
  4. 1st appointment letter receive from HDB
  5. In-principle approval letter receive from HDB
  6. Letter of authorization send to HDB
  7. Letter of acceptance by law firm acting in the sale
  8. If there are warming letter on current property must submit together.

If current property to be sold is a private property

  1. Duly exercised option to purchase for current property
  2. Latest CPF withdrawal statement for current property
  3. Account statement from current bank / HDB reflect latest loan balance
  4. Offer letter from buyer’s lawyer
  5. Letter of acceptance by law firm acting in the sale
  6. If there are warming letter on current property must submit together.

Approval of this loan application is base on the bank’s discretion.

Choose A most Trustworthy licensed moneylender to apply this loan – 1st LG Credit

In fact, expansion of money lending market is benefit for a lot borrower. Since the licensed moneylenders evolve in Singapore, bank do not offering this bridging loan option for borrowers. In case, you need emergency finance there are many resources available. Recently moneylender is become a preferred option to transform many people live excellent.

1st LG Credit is one of the top moneylender in Singapore. Our professional advisor can supply best method for every client. So that our company have many customer satisfaction with repeat applying and referral customer.

For more inquiry regarding our payday loan or others product
Do not hesitate to contact us at +65 6299 6654

Visit our office at 25 Norris Road Singapore 208267

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