Singapore · Application process

Bridging loan application — step by step

A full bridging-loan application takes 2-4 weeks from initial enquiry to disbursement. This guide walks through each step — documentation prep, lender selection, application submission, underwriting, facility letter, disbursement, and final repayment from sale proceeds.

Step 1 — Pre-application preparation

Before you formally apply, prepare:

• Credit Bureau Singapore report — order your CBS report (1 free per year at creditbureau.com.sg) to spot any issues
• Income documentation — latest 3 months payslips, latest IRAS NOA, CPF contribution history
• Existing mortgage statement showing outstanding balance on your current property
• CPF withdrawal statement for the outgoing property
• Estimated sale price for your outgoing property (a recent valuation or comparable transactions)

Step 2 — Lender selection

Decide whether to approach lenders directly or via a MAS-regulated mortgage broker. Direct approach works when you have a clear lender preference (e.g. already banking with DBS, want DBS to handle everything). Broker approach surfaces parallel quotes from multiple lenders.

For broker-led applications, the broker submits to multiple lenders simultaneously and reports back with quotes. Allows comparison on rate, fees, and bundling terms.

See all SG bridging-loan lenders with source-cited bridging pages, or use the free shortlist tool to route to MAS-regulated brokers.

Step 3 — Sign OTP on new property

The bridging facility cannot be applied for until you have a firm commitment to the new property purchase. Most lenders require the Option to Purchase (OTP) signed on the new property as a precondition to submitting the application.

Don't sign the OTP until you've had preliminary lender conversations confirming bridging is viable for your transaction profile.

Step 4 — Firm sale arrangement on existing property

The bridging facility is secured against expected sale proceeds. You need a firm sale arrangement on the existing property — typically OTP signed by your buyer, ideally with Sale & Purchase agreement executed.

If your existing property isn't yet under firm sale, list it for sale immediately when you start the bridging discussion. Some lenders accept marketing-evidence in lieu of buyer-side OTP for the initial application but require buyer-side documentation before approval.

Step 5 — Submit application

Application documentation typically required:

• OTP / S&P on new property
• OTP / S&P on existing property (buyer-side)
• NRIC / passport
• Income documentation (payslips, NOA, CPF history)
• Credit Bureau Singapore report (if requested)
• Existing mortgage statement
• CPF withdrawal statement for outgoing property
• Valuation report on outgoing property (some lenders commission their own)

Step 6 — Lender underwriting

Lender underwriting takes 1-3 weeks depending on complexity. During this period the lender:

• Pulls Credit Bureau Singapore record
• Verifies income via CPF contribution history
• Commissions / accepts valuation on outgoing property
• Calculates TDSR on onward mortgage
• Calculates MSR if HDB / EC purchase
• Reviews buyer-side OTP / S&P on existing property
• May make follow-up requests for additional documentation

Step 7 — Facility letter

On approval the lender issues a facility letter specifying:

• Bridging principal amount
• Interest rate structure (prime + spread, SORA + spread, or fixed)
• Tenure (typically 6 months)
• Fees (legal, valuation, processing)
• Extension terms if sale completes late
• Refinancing options if applicable
• Acceptance deadline

Review carefully, discuss any unclear terms with the lender, ideally with a property lawyer or mortgage adviser. Don't sign until extension and worst-case scenarios are documented.

Step 8 — Disbursement at new-property completion

When the new-property purchase completes, the bridging facility is drawn down and disbursed — typically directly to the seller's law firm to complete the purchase, in coordination with your conveyancing lawyer.

Interest begins accruing from disbursement. Most facilities are interest-only — no principal repayments during the tenure.

Step 9 — Existing-property sale completion + repayment

When your existing property sale completes, sale proceeds are typically routed to discharge any existing mortgage on the outgoing property and then to repay the bridging facility principal + accrued interest. Any surplus is paid to you.

This step is coordinated by the conveyancing law firm. Your involvement is primarily ensuring you've signed required documents and provided any final information requested.

Frequently asked questions