Bridging loans are a short-term funding solution. Usually, a 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 is a new term appear in your library. The new terms this is bridging loan.
What are bridging loans and how do they assist you?
Firstly, bridging loans are created to assist people to accomplish the purchase of a new home before selling their current house by providing them s short-term loan at a high rate of interest.
Besides that, the loan can help home movers when there is an 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 to purchase at auction.
As a result of bank and other financial institution have grown more reject to lend in this economic crisis. There is growing of bridging money lenders into the market.
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 to accomplish the process of purchase of a real estate before selling their current house by supplying them with short-term cash advanced at a high rate of interest.
Who are bridging loans target at?
Familiarly, the bridging loans are a target at property owner and amateur property developers, including those purchasing an action where a housing loan is needed immediately. The advantage of the bridging loan is assisting 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 because they short falling on the money. Hence, bridging loan is the best option to settle this condition.
Timing to apply for bridging loans?
Actually bridging loans can be applying for various purposes, 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 is taking longer to process of applying for housing loans.
In addition, most of the applicant also researches on the bridging loans as a simple another mainstream lending. However, if you consider about to apply for the loan, you need to consider carefully regarding your outfall strategy. For example, related to obtaining 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 an alternative way. We called the 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 utilized to improve your existing property. In case it necessary to do some minor restores to get the house sale.
With applying for 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.
– The benefit of bridging loan
- Flexible repayment
- While the repayment tenure pay for service interest
- Repayment the principal after you receive loan from your current property.
- Lowest interest rate charges
( There are some rules and regulation apply. )
– Eligibility and Qualification
- Singaporeans / Permanent resident (PR)
- Aged between 21 to 65 by Ministry of Law
- Minimum annual income with S$ 30, 000 and above
- Proven of sale for the current property
- The bridging loan must apply simultaneously with a home loan for a new purchase
- Applicant must pay at least 5% cash down payment using their own money
– Charges (all moneylender may vary)
- No extra processing fees or hidden charges
- There are additional charges caused by overdue
- No prepaid charges or cancellation fees
– Required Document
The application form must attach with all required documents.
(Originals must bring together for verification)
If the current property to be sale is a HDB ( public housing provided by Housing & Development Board. )
- Selection to purchase for current property
- Most recent CPF withdrawal statement for current property
- Most recent bank account statement that HDB showing latest loan balance
- 1st appointment letter get from HDB
- In-principle approval letter get from HDB
- Letter of authorization send to HDB
- Letter of acceptance by the law firm acting in the sale
- If there is a warming letter on the current property must submit together.
If current property to be sold is a private property
- Duly exercised an option to purchase for current property
- Latest CPF withdrawal statement for current property
- Account statement from current bank / HDB reflect latest loan balance
- Offer letter from buyer’s lawyer
- Letter of acceptance by law firm acting in the sale
- If there is warming letter on the current property must submit together.
Approval of this loan application is base on the bank’s discretion.
Choose a most Trustworthy licensed money lender to apply this loan – 1st LG Credit
In the event, expansion of money lending market is benefit for a lot borrower. Since the licensed money lenders evolve in Singapore, the bank does 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 to excellent.
1st LG Credit is one of the top money lenders in Singapore since 1991. 1st LG Credit Pte Ltd formerly named as Lekshmi Moneylender. Our company first objective of giving all staff training on money lending knowledge and customer service skill. Our professional advisor can supply the best method for every client. So that our company have many customer satisfaction with repeat applying and referral customer. Company’s another objective is giving out a loan with lowest interest rates.
For more inquiry regarding our payday loan or other product, do not hesitate to contact us at +65 6299 6654. Besides that, you also can drop an email to firstname.lastname@example.org
Right now our office is in the central region of Singapore – Orchard Road. The address is 16, Kerbau Road, #02-01, Singapore 219155.