What is a bridging loan, and when should I use one?

A short-term loan that covers your new downpayment before your existing property's sale proceeds arrive (the minimum 5% cash downpayment still needs to be paid in cash). Useful when your selling and buying timelines don't line up.

What are current bridging loan interest rates in Singapore?

DBS bridging loans are pegged to its Prime Rate, currently 4.25% p.a. (as of 23 July 2026), with no lock-in period. Rates vary by bank, so confirm the exact figure with your lender before applying.

How does a bridging loan differ for HDB vs private property?

The core bridging loan structure is the same for both HDB and private property. HDB buyers face an additional MSR cap (30% of income); private buyers are mainly subject to TDSR. Both need sale documentation and eligibility proof.

How much can I borrow with a bridging loan?

You can typically borrow up to 20% of your new property’s value, capped at your net sale proceeds (bank-dependent). Banks won't lend beyond what's needed to bridge the gap.

Who is eligible for a bridging loan in Singapore?

Singapore Citizens and PRs are eligible. Foreigners are considered case-by-case if documentation is solid. Generally, you'll need an OTP, a Sale and Purchase Agreement (or signed OTP) for your existing property, latest payslips or CPF contribution history, and your NRIC/passport.

What happens if my property sale is delayed during a bridging loan?

If your sale is delayed, you may need a loan extension or to service additional interest. Some banks charge penalty fees for late repayment, so clarify these terms before signing.

Are there hidden fees with a bridging loan?

Yes, you can expect processing fees (~1% of loan amount), legal fees, and possible late-payment or extension penalties. Always check your final agreement for full disclosure.

Will a bridging loan affect my TDSR or next home loan approval?

No, a bridging loan itself is TDSR-exempt if repaid within 6 months, since MAS excludes it from your Total Debt Servicing Ratio (TDSR). But any other loans you're carrying (car loan, existing mortgage) still count toward the 55% cap when the bank assesses your next home loan.

Can I use CPF for repayment?

CPF can go toward your new property purchase, and once your existing property's sale completes, the CPF savings refunded to you can be used to repay the bridging loan principal. However, interest on the bridging loan must be serviced in cash throughout the loan period—CPF cannot cover it.

Bridging Loans in Singapore: Compare Rates & Bridge Your Property Gap

Buying your next house before you've sold your current one? Compare bridging loan rates from DBS, OCBC, and UOB, and see which repayment structure fits your cash flow.

Compare Home Loan Rates in Singapore — Apply Online From 1.28% p.a.

Compare Bridging Loan Rates →

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What is a Bridging Loan in Singapore?

A bridging loan is a short-term loan that “bridges” the cash gap when purchasing your next home before selling your current one. It essentially covers your new downpayment while waiting for your existing property’s sale proceeds to come through.

Because it’s designed for speed rather than long-term stability, it incurs a higher interest rate than a standard home loan and is typically capped at 6 months, as regulated by the Monetary Authority of Singapore (MAS) and banks.

Other things to note include:

Bridging loans work both ways—whether you’re upgrading from HDB → private property or moving between private properties.
You’ll need an OTP (Option to Purchase) for your new home, plus proof you’re selling your current one (i.e. a signed OTP or Sale & Purchase Agreement).

Two structures are available: Capitalised interest and Simultaneous repayment. The difference comes down to when you pay.

Two structures are available: Capitalised interest and Simultaneous repayment. The difference comes down to when you pay.

Capitalised interest bridging loan	Simultaneous repayment bridging loan
No monthly payments. Principal and interest are paid together as one lump sum when your sale completes. Cash flow: Zero extra monthly outflow during the bridging period. Trade-off: Larger final sum, but only due once your sale proceeds land. Best for: HDB upgraders and borrowers already juggling other loan repayments.	Monthly interest payments start immediately, alongside any existing mortgage. Cash flow: Higher monthly outflow—mortgage plus bridging loan interest. Trade-off: Slightly lower total interest cost, since interest doesn't compound. Best for: Borrowers with strong cash flow who want to minimise total interest paid.

Bridging Loan vs Home Loan & Personal Loan: Key Comparison

Not sure a bridging loan is the right fit? Compare it against a home loan or personal loan to see which matches your timeline and cash flow.

Key loan features

Loan type	Interest rate (p.a.)	Typical tenure	Max loan quantum	Collateral	Approval speed
Bridging Loan	DBS: pegged to DBS Prime Rate, currently 4.25% OCBC and UOB: Case-by-case basis	Up to 6 months	Up to 20% of new property price	Property (sold)	3–7 working days
Home Loan	From 1.28%	Up to 35 years (private), 25–30 years (HDB, depending on loan type)	Up to 75% (1st property)	Property (bought)	3–10 working days
Personal Loan	From 0.90%	Up to 5–7 years	$200,000 or 4x monthly income	None (unsecured)	Same day–3 days

Disclaimer: The interest rates, figures, and terms are accurate as of July 2026. Lending criteria and rates are subject to change and vary by institution. Verify current terms directly with financial providers before applying.

Loan fees, eligibility and documentation

Loan type	Administrative & legal fees	Property eligibility	Eligibility	Key documents
Bridging loan	Processing fees (~1% of loan quantum) plus applicable legal costs	HDB & private resale	Singaporeans / PRs Eligible foreigners (Case-by-case basis) Min. 21 years old Sufficient income to meet standard home loan / TDSR requirements	Executed OTP (New), Proof of Sale (Existing), and income statements
Home loan	Cancellation fee: 0.75%–1.50% of loan amount Full redemption penalty: 1.50% Partial repayment penalty: Up to 1.50%, varies by package type Min. loan size: $100,000–$500,000, varies by bank and package	HDB, EC, condo, landed	Singaporeans / PRs / Foreigners (bank-specific) Loan tenure + borrower’s age ≤ 65 for full LTV Income assessed against the 55% TDSR cap	OTP, income verification, and CPF contribution history
Personal loan	Processing fee: 0%–1% Late payment fee: $100–$120 Cancellation / full repayment fee: $150–$250, or 3% of outstanding or 2.5% of redemption amount Partial repayment: Not allowed (most banks) to 2.5% (HSBC) Annual fee: $0–$199 Min. annual income: $20,000–$65,000+ (Singaporeans / PRs); up to $90,000 (Foreigners)	Not property-linked	Singaporeans / PRs Eligible foreigners (Case-by-case basis) Typically 21–65 years old Min. annual income of $20,000–$30,000 (by bank)	NRIC / Passport, income verification, and residential address proof

⚠️ Bridging loans repaid within 6 months are exempt from TDSR; MAS excludes them from your Total Debt Servicing Ratio (TDSR) calculation, so they won't count against the 55% cap when banks assess your other loans.

Other concurrent loans (car loan, existing mortgage) still count toward that cap for your next home loan.

Which Type of Loan Fits You Best?

Bridging loans

💡 Use case: Your sale and purchase timelines don’t line up, and you need short-term funds fast.

⭐ Best for: Covering the non-cash portion of your new downpayment while you wait for existing property’s sale proceeds (Note: The min. 5% cash downpayment still needs to be paid for in cash).

Choose capitalised interest if…	Choose simultaneous repayment if…
You want zero monthly outflow during bridging period	You have strong cash outflow and want minimal total interest

Home loans

💡 Use case: For standard property purchases where you want the lowest long-term rate and highest loan-to-value.

⭐ Best for: Long-term stability rather than short-term funds.

🧩 Plan matching: Compare fixed vs floating packages based on your risk appetite for rate changes.

Fixed rates suit those favouring repayment certainty.
Floating rates suit those comfortable tracking SORA benchmarks.

Personal loans

💡 Use case: You don’t want to pledge your property, or need flexible funds without a property-linked structure.

⭐ Best for: Borrowers preferring unsecured, no property collateral loans.

🧩 Plan matching: Compare processing fees, late payment charges, and early repayment penalties across banks for variations

FAQS about Bridging Loans in Singapore

What is a bridging loan, and when should I use one?: A short-term loan that covers your new downpayment before your existing property's sale proceeds arrive (the minimum 5% cash downpayment still needs to be paid in cash). Useful when your selling and buying timelines don't line up.
What are current bridging loan interest rates in Singapore?: DBS bridging loans are pegged to its Prime Rate, currently 4.25% p.a. (as of 23 July 2026), with no lock-in period. Rates vary by bank, so confirm the exact figure with your lender before applying.
How does a bridging loan differ for HDB vs private property?: The core bridging loan structure is the same for both HDB and private property. HDB buyers face an additional MSR cap (30% of income); private buyers are mainly subject to TDSR. Both need sale documentation and eligibility proof.
How much can I borrow with a bridging loan?: You can typically borrow up to 20% of your new property’s value, capped at your net sale proceeds (bank-dependent). Banks won't lend beyond what's needed to bridge the gap.
Who is eligible for a bridging loan in Singapore?: Singapore Citizens and PRs are eligible. Foreigners are considered case-by-case if documentation is solid. Generally, you'll need an OTP, a Sale and Purchase Agreement (or signed OTP) for your existing property, latest payslips or CPF contribution history, and your NRIC/passport.
What happens if my property sale is delayed during a bridging loan?: If your sale is delayed, you may need a loan extension or to service additional interest. Some banks charge penalty fees for late repayment, so clarify these terms before signing.
Are there hidden fees with a bridging loan?: Yes, you can expect processing fees (~1% of loan amount), legal fees, and possible late-payment or extension penalties. Always check your final agreement for full disclosure.
Will a bridging loan affect my TDSR or next home loan approval?: No, a bridging loan itself is TDSR-exempt if repaid within 6 months, since MAS excludes it from your Total Debt Servicing Ratio (TDSR). But any other loans you're carrying (car loan, existing mortgage) still count toward the 55% cap when the bank assesses your next home loan.
Can I use CPF for repayment?: CPF can go toward your new property purchase, and once your existing property's sale completes, the CPF savings refunded to you can be used to repay the bridging loan principal. However, interest on the bridging loan must be serviced in cash throughout the loan period—CPF cannot cover it.