Singapore · Bridging loan explainer

What is a bridging loan?

A bridging loan is a short-term loan (typically 6 months in Singapore) that covers the cash-flow gap between buying a new property and receiving sale proceeds from your existing property. It bridges the timing gap — hence the name.

The cash-flow problem bridging solves

When you're upgrading from one Singapore property to another, the typical sequence creates a timing problem:

1. You find the new property you want to buy. You sign the OTP (Option to Purchase) and pay a booking deposit.
2. Within 3 weeks, you sign the Sale & Purchase agreement on the new property. The remainder of the down-payment is due.
3. You list and sell your existing property. HDB resale completion typically takes 12-20 weeks; private property can be wider.
4. You take possession of the new property — but your existing property may not have completed sale yet. The cash you were going to use is still locked in the outgoing property.

That gap between "I need to pay for the new property" and "sale proceeds from the existing property arrive" is where bridging fits.

How it actually works

At completion of your new-property purchase, the bridging lender disburses the loan into your account (or directly to the seller's law firm). The loan amount is typically up to the net sale proceeds you expect to receive from your existing property.

Interest accrues from disbursement at the agreed rate. Most bridging facilities are interest-only — no principal repayments during the tenure. When your existing-property sale completes, the sale proceeds repay the bridging loan principal plus accumulated interest in a single lump sum.

The standard tenure is 6 months across virtually all SG lenders — enough time for the existing sale to complete in normal market conditions. Extensions are possible at higher rates if the sale runs late.

When you need one (and when you don't)

You need bridging when:

• Your new-property completion is firmly before your existing-property sale completion
• You don't have liquid savings to cover the down-payment gap from cash
• You're buying first then selling — common in Singapore because of OTP / S&P timing pressure

You don't need bridging when:

• You sell first then buy, with completion of the sale before commitment on the new property
• You have enough liquid savings (including CPF) to fund the entire down-payment without waiting for sale proceeds
• You're buying without selling (no existing property to bridge against)

Three product shapes — pick yours

Next steps

Read the full bridging-loan guide for the complete framework, the interest-rate guide for how rates are priced, or use the free shortlist tool to be matched with MAS-regulated mortgage brokers in 1 business day.

Frequently asked questions