Singapore · Bridging-loan interest rate

Bridging loan interest rates in Singapore — how pricing works

Singapore bridging-loan rates are not published as fixed percentages on lender marketing pages. They're quoted on application, priced against either the lender's prime rate or against SORA. This guide explains the pricing models, what to ask for in the quote, and how to compare across lenders.

No public rate table

We deliberately do not publish a fabricated "current bridging-loan rate" table. Every bridging facility in Singapore is quoted on application; published numbers would be either out of date or inaccurate for your specific transaction. This page documents the pricing mechanics; for a current quote, contact the lender or use the free shortlist tool.

Two pricing models you'll see

1. Prime-rate / board-rate linked

Used by most major Singapore banks. The bridging facility is quoted as the bank's prime/board rate plus a transaction-specific spread (for example, "Bank prime plus a margin determined at application"). The prime rate is published by the bank; the spread varies by transaction and is the bank's room to flex.

When prime rate changes, the bridging rate changes by the same amount. Banks revise their prime when prevailing wholesale funding costs shift — irregular but real.

2. SORA-linked

SORA (Singapore Overnight Rate Average) is the SG benchmark interest rate, calculated daily by MAS. SORA-linked bridging facilities quote as "Compounded SORA + spread" or "1M / 3M SORA + spread". The compounding window resets at defined intervals.

SORA moves more frequently than bank prime rates because it reflects daily monetary conditions. For a 6-month tenure, modest SORA moves can shift your total interest cost — build in a small buffer.

3. Fixed-rate (some non-bank lenders)

Some MAS-regulated finance companies and specialist lenders quote a fixed rate per transaction, locked at disbursement. Removes interest-rate-direction risk during the tenure but typically priced at a premium over equivalent bank facilities.

What to ask for in a bridging-loan quote

When you contact a lender for a bridging-loan quote, ask for:

  1. Reference rate used (prime, SORA, or fixed) and the current value
  2. Spread over the reference for your transaction
  3. Whether the rate is locked or floats during the bridging tenure
  4. Indicative total interest cost for your expected drawdown amount × expected tenure
  5. Extension-charge rate if the existing sale completes late
  6. All-in cost breakdown including legal, valuation, processing fees
  7. Bundle discount if you're also taking the onward mortgage from the same lender

Why bridging rates are higher than home-loan rates

Bridging facilities are typically priced at a small premium over the same lender's published home-loan rates. Reasons:

  • Short-tenure facilities carry higher operational overhead per dollar lent
  • Underwriting is transaction-specific rather than standardised
  • The bank is exposed to completion-timing risk on the outgoing sale
  • Bridging facilities are not typically eligible for the same wholesale-funding economics as 30-year mortgages

Get a current quote from MAS-regulated lenders

See all 12 lenders for direct contact details, or use the free shortlist tool to receive quotes from MAS-regulated mortgage brokers in parallel.

Frequently asked questions

What is the bridging loan interest rate in Singapore right now?

There is no single published bridging-loan rate that applies across the SG market. Each lender prices on a different basis (prime/board rate plus a spread, SORA plus a spread, or fixed per-transaction). Specific rate is quoted on application after the lender reviews your transaction. Banks rarely publish fixed %ages on their bridging-loan marketing pages.

Why don't banks publish a fixed bridging-loan rate?

Bridging facilities are short-term and underwritten case-by-case. Factors include the bank's prevailing prime rate, the SORA reference if applicable, whether you're also taking the onward mortgage, your overall credit profile, and the transaction specifics. Banks typically prefer to quote at application rather than commit a public rate that may shift before you transact.

Prime-rate vs SORA-linked bridging — which is better?

Depends on rate-direction expectations and your tenure exposure. SORA moves more frequently and can be cheaper when rates are falling, more expensive when rising. Prime/board rate is more stable but lags market moves. For a 6-month bridging tenure, the difference is typically modest because the window is short.

How much can rates change during the 6-month tenure?

For prime-rate-linked facilities, rates can change when the bank revises its prime. For SORA-linked facilities, rates can move with each SORA reset. For fixed-rate facilities (mostly non-bank lenders), the rate is locked at disbursement. Build a small buffer into your interest-cost budget.

Is the bridging rate higher than a normal home loan rate?

Typically yes — bridging is short-term, unsecured against permanent property collateral, and the operational overhead per dollar is higher. Banks often price bridging at a small premium over their published home-loan rates.

Can I negotiate the bridging loan rate?

Some. Banks have more flexibility when you're also taking the onward mortgage from them — bundling improves your negotiating position. Non-bank lenders are typically more rigid on rate but may be more flexible on eligibility. Brokers can negotiate on your behalf across multiple lenders.

What other charges affect the all-in cost?

Legal / conveyancing fees (SGD 1,500-4,000), valuation fee (SGD 300-800), processing fees, and any extension charges if the existing-property sale completes late. The "rate" by itself is only one cost component.

How do I get a current quote?

Either approach a lender directly via their bridging-loan page, or use the free shortlist tool to receive quotes from MAS-regulated mortgage brokers who can compare across multiple lenders in parallel.

Sources

Rate-pricing mechanics drawn from each MAS-regulated lender's published bridging-loan page and home-loan documentation. SORA published by MAS at eservices.mas.gov.sg/statistics. This page is informational only and does not constitute financial advice.