Category: Bridging Loans

In today’s world, financial liquidity can be a significant constraint that prevents us from achieving our dream projects or investments. Sometimes, we need quick cash to meet our current financial needs and wish to raise big amount without any immediate cash on hand. This is where bridging loans come to play. For those looking to smooth out their finances or just seize an unexpected opportunity, a bridging loan could be an excellent option for them. In this blog post, we’ll be exploring more about bridging loans in Singapore; what they are, how they work, and their features. What is a Bridging Loan? A bridging loan, also known as a swing loan or interim financing, is a short-term loan that helps individuals cover their current financial needs temporarily. This loan is usually taken out when the borrower owes payments on a property that they have not yet sold, but wish to purchase a new property that will not wait. Furthermore, it’s also an option for those who need quick cash to finance other investments or projects. Bridging loans in Singapore typically require the borrower to repay the loan within 6 to 12 months, depending on the loan terms. The loan can have secured or unsecured options, depending on your repayment plan and financial standing. How Do Bridging Loans Work in Singapore? Bridging loans work similarly to other types of loans. You approach a lender and express your interest in getting funds through a bridging loan. The lenders will usually require you to provide collateral, such as the property you plan to sell or the property you intend to purchase, or any other forms of security. The lender evaluates your property’s value and your financial position before giving you the loan. Once approved, you will receive funds to use while your property sale is in progress and make payments on the property that you want to purchase. You will then need to pay back the bridging loan once you sell the property or receive the funds to finance it. Features of Bridging Loans in Singapore Bridging loans in Singapore have several features that make them unique from other types of loans. Firstly, they offer a quick and easy cash solution to those who meet their short-term financial needs. Secondly, they have flexible repayment terms, designed to suit the borrower’s financial positions. Thirdly, bridging loans are secured or unsecured, depending on the borrower’s repayment plans and collateral. Lastly, the loan amount is customized to meet the borrower’s needs, making it easy to raise big amounts depending on the financial situation. In conclusion, bridging loans can be a great financial solution for those looking to smooth out their finances or seize unexpected opportunities, especially for the time-sensitive projects or investments. So, if you find yourself in a similar situation, seeking financial liquidity to meet your current needs, bridging loans in Singapore can be a good option for you. At Su Credit, we offer customized bridging loans that meet your specific needs. With flexible repayment terms and competitive interest rates, we ensure that you get the funds you desire without any unnecessary financial constraints. Contact us today to know more!

Are you planning to buy your dream property? But do you lack the funds required for it? Do not let this stop you from taking a step towards your dream. Bridging loans can help you secure the funds needed for your property purchase. In this blog, we will discuss what bridging loans are and how they can be beneficial for you. What are Bridging Loans? Bridging loans are a form of short-term finance used to bridge the gap between property transactions or refinance debt. They are usually taken for a term of 12 to 36 months, but can also be repaid as early as 3 to 6 months. Benefits of Bridging Loans One of the key advantages of a bridging loan is that it can help you secure a property quicker than a traditional mortgage. This is particularly useful in situations where a property sale has fallen through, and you need the funds quickly to secure the next property. Additionally, bridging loans can be used for other purposes such as property development, auction purchases, and more. Applying for a Bridging Loan To apply for a bridging loan, you will need to approach a regulated lender or broker, who will assess your situation and provide you with lending options that match your needs. A credit check will be carried out as part of the assessment process, and the lender will also want to know about your exit strategy – i.e. how you plan to repay the loan. Fees and Interest Rates Bridging loans typically have higher interest rates than traditional mortgage rates, but they are more flexible in their lending criteria. The interest rates and fees vary depending on the lender, the loan amount, and the loan term. Be sure to understand the fees involved and get a clear understanding of the repayment terms before committing to a loan. In conclusion, bridging loans are a great option for anyone who needs a short-term loan to bridge a financial gap. Whether you are buying property or refinancing debts, bridging loans can be a valuable tool to help you achieve your goals. If you are considering a bridging loan, be sure to do your research and understand the terms and conditions before signing up for a loan. Don’t let a lack of finance be the reason you miss out on your dream property. Bridging loans can help you secure your purchase and ensure your property goals and dreams are realized. Contact SU Credit today to see how we can help you bridge the gap in your finances and secure the property of your dreams.

In our lifetime, many of us will move from one property to another, be it for a growing family or an upgrade. When buying and selling properties simultaneously, bridging loans can be a lifesaver. In this comprehensive guide, we’ll delve into what bridging loans are, the types available, important considerations, and how they can be beneficial for your property journey. If you’re ready to take the next step, SU Credit’s mortgage experts are here to help you find the perfect bridging loan tailored to your financial needs. What Is a Bridging Loan? A bridging loan is a short-term financing option that “bridges” the gap between the downpayment required for your new property and the proceeds from selling your existing property. It helps you avoid delays when making the downpayment while waiting for the funds from your property sale. Bridging loans are typically offered by banks and licensed financial institutions, ensuring you receive reliable and regulated financial support during your transition. Capitalised Interest Bridging Loan Vs. Simultaneous Repayment Bridging Loan: There are two types of bridging loans – capitalised interest and simultaneous repayment. The capitalised interest bridging loan allows you to defer interest payments during the loan tenure, while the interest is added to the loan principal. On the other hand, the simultaneous repayment bridging loan requires you to make regular interest payments along with the repayment of the principal amount. However, in Singapore, both types require repayment within six months, making the difference between them irrelevant. The key decision is whether to bridge only the downpayment or include a portion of the home loan as well. Key Facts about Bridging Loans in Singapore: – Maximum amount: The loan amount is limited by the net proceeds and CPF balance from your property sale. However, as long as the sales proceeds from your previous property can cover it, you can get that limit approved – and even use it to get a lower Loan-to-Value (LTV) ratio as well. – Maximum tenure: Bridging loans must be settled within 6 months, ensuring a short-term financial commitment. – Interest rates: Interest rates vary among banks, typically ranging from 5% to 6% per annum. However, you can work with SU Credit’s mortgage experts to find the most competitive rates and terms. How to Use a Bridging Loan to Lower Your LTV Ratio: Bridging loans can help you optimize your Loan-to-Value (LTV) ratio, which determines the amount of your home loan relative to the property’s value. By using the proceeds from your property sale to cover the downpayment, you can reduce your home loan amount, leading to a lower LTV ratio. This can result in better loan terms and interest rates, making homeownership more affordable and manageable. Is Taking a Bridging Loan a Good Idea? 4 Important Considerations: When deciding on a bridging loan, ask yourself these key questions: Why am I taking a bridging loan? Consider specific scenarios like en bloc sales, newly renovated properties, or property upgrades. SU Credit’s experts can help you assess your unique situation and recommend the most suitable financial solution. How much cash do I have on hand? Evaluate if taking a bridging loan is necessary to preserve cash or if other options like CPF funds are available. Our team will guide you through the available choices, ensuring you make a well-informed decision. What are the total costs incurred? Calculate the interest and additional fees you will pay for the bridging loan to understand the financial commitment. SU Credit’s transparent approach ensures you have a clear picture of the costs involved. What is my Plan B if the sale of my old property doesn’t go through? Understand the exit clauses and penalties in case your property sale faces setbacks. Our mortgage experts can guide you on contingency plans to safeguard your financial interests. Consult Our Mortgage Experts: At SU Credit, we understand that every individual’s financial journey is unique. Our knowledgeable mortgage experts are ready to provide personalized advice and support to help you make the best decision for your property transition. Whether you need guidance on bridging loans or other home loan options, we are committed to finding the perfect solution tailored to your needs. Contact us today to take the next step towards a seamless and successful property journey. Bridging loans offer an efficient solution for managing the financial transition when buying and selling properties in Singapore. By understanding the types, benefits, and considerations associated with bridging loans, you can make a well-informed decision to ensure a successful and stress-free property journey. For personalized advice and to explore the best bridging loan options, reach out to SU Credit’s mortgage experts. Let us be your trusted partner on your path to homeownership.