Singapore · Bridging-loan fees

Singapore bridging loan fees & costs

A bridging loan has more cost components than just the headline interest rate. This guide breaks down the typical fees you'll encounter — conveyancing, valuation, processing, stamp duty interaction — with industry-cited SGD ranges and source references. We use ranges rather than fabricated specifics because fees vary by lender and transaction.

1. Legal / conveyancing fees

Conveyancing covers the legal work of transferring property ownership — drafting / reviewing the Sale & Purchase agreement, lodging caveats, discharging the existing mortgage, registering the new mortgage. Industry-typical ranges:

• HDB resale conveyancing — typically SGD 1,500-3,000 from external law firms; somewhat less if using HDB's appointed conveyancing service for straightforward transactions
• Private property conveyancing — typically SGD 2,000-4,000 for residential transactions; can run higher for landed, multi-party or trust-structured matters
• EC purchases — typically SGD 2,500-4,500 due to additional EC-specific documentation requirements

The Law Society of Singapore publishes recommended fee guidance, but firms set their own rates. Always obtain written fixed-fee quotes from 2-3 firms before engaging. The Law Society directory is at lawsociety.org.sg.

2. Valuation fees

Lenders typically require a professional valuation of the outgoing property (to verify expected sale proceeds) and sometimes the incoming property too. Industry-typical ranges:

• HDB resale valuation — typically SGD 300-500
• Private property valuation — typically SGD 500-800; higher for landed and large condominium units

Sometimes bundled into the onward home-loan application — if the same lender is handling both bridging and the onward mortgage, the valuation may be re-used or waived. Confirm with the lender.

3. Processing fees

Lender-charged processing or facility-arrangement fees. Varies materially:

• Some banks waive processing fees when bridging is bundled with the onward mortgage from the same bank
• Finance companies and specialist lenders may charge a flat processing fee or percentage-of-facility fee
• Always confirm the processing-fee structure in writing before committing

4. Stamp duty interaction (BSD & ABSD)

Stamp duty applies to the new-property purchase, not specifically to the bridging facility. But because bridging often involves owning two properties simultaneously, the stamp-duty implications matter for total cost planning.

Buyer's Stamp Duty (BSD)

Payable on every residential property purchase. BSD is a progressive marginal-rate schedule starting at 1% on the first SGD 180,000 of purchase price. Specific rates and tier thresholds are set by IRAS — see iras.gov.sg for the current schedule.

Additional Buyer's Stamp Duty (ABSD)

Applies when buying a second residential property while still owning the first. Rates depend on residency status (Singapore Citizen, PR, foreigner) and how many properties you already own. Current rates published by IRAS.

ABSD remission is available to Singapore Citizen married couples in defined circumstances — including selling the first property within a remission window (currently 6 months from completion of the new property; verify current timeline at IRAS). Bridging-loan timing often aligns with this 6-month window: the bridging facility lets you complete the new-property purchase before selling the existing one, while staying within the remission window.

ABSD rules are complex and consequential. Consult a Singapore property lawyer for advice specific to your transaction. IRAS current guidance at iras.gov.sg.

5. Interest cost

Interest is typically the largest single cost component. Calculated on the disbursed amount × actual tenure × applicable rate. Most facilities are interest-only — no principal repayments during the tenure; principal repaid in a single lump sum from sale proceeds.

For specific rate pricing models — prime + spread vs SORA-linked vs fixed — see the bridging-loan rates page. Specific rate is quoted on application.

6. Extension charges (if sale completes late)

If your outgoing-property sale completes beyond the standard 6-month bridging tenure, the lender may charge a higher extension rate or arrangement fee. Discuss extension terms with the lender before signing the facility letter — understanding the cost of delay is important risk management.

Total-cost worked example (illustrative ranges only)

Frequently asked questions