Bridging loans: how they can help you

a moneylender supports a borrower in protecting his house with a bridging loan

Have you ever wanted to buy a new home but do not have enough cash to pay for it due to the fact that you have not received the proceeds from the sale of your old home yet? This is when a bridging loan can come in handy in helping you solve your financial issues.

A bridging loan is a type of loan used to help bridge the time and the monetary gap between the sale of your old home and the purchase of your new one. Such loans are meant to be repaid within 6 – 12 months and are designed to tide you over until you receive the profits from the sale of your home. In this article, we will be talking about the key facts of a bridging loan.

Where can you get a bridging loan from?

When it comes bridging loan, there is a wide range of financial institutions such as banks and licensed money lenders which offer these loans. In Singapore, bridging loans are offered by most major banks and licensed money lenders to interested individuals.

When searching for a bridging loan that best suits your needs, be sure to only borrow from financial institutions that are licensed, regulated and granted permission to operate. In order to check if they are licensed and regulated, you can head to Monetary Authority of Singapore’s website to view the list of registered banks. For the list of licensed money lenders, you can head over Ministry of Law’s website to view the list.

It is always best to borrow from licensed and regulated financial institutions, as this will prevent you from being unfairly treated, which may happen if you take a loan from unregulated financial institutions, such as unlicensed money lenders.

One such regulated financial institution is Soon Seng which is a licensed money lender. Soon Seng offers bridging loans to individuals who are in need of funds to deal with the purchasing or upgrading of property.

Soon Seng’s bridging loans are one of the best loans available to individuals who need credit to deal with the purchase or the upgrading of property as it is a low interest loan that offers competitive interest rates to clients. The loan is also very accessible as you can apply for it online, which makes it convenient for you when applying for one.

When is a bridging loan applicable and who should get one?

A bridging loan is usually taken out by individuals who are upgrading their property, due to the large down payment that is usually required for the upgrade. This loan is also useful for individuals who have not yet received the profits from the sale of their existing home.

For example, you are buying a newly launched condo that has a value of $1,000,000.  In this scenario, you’ve already paid the 5% down payment in cash. However, you may not have the funds to pay the next down payment of $200,000, which is 20% of the purchase price as your money is still tied up in your existing home. In this situation, a bridging loan will come in handy as it will help you to pay the next down payment of $200,000.

A bridging loan can also utilized by individuals who wish to start a real estate business. Such loans will be useful for them as they will need the capital to constantly purchase property.

Do not worry too much about your finances

If you are a home owner who is in the midst of purchasing new properties, you will most likely be worried about the state of your finances due to the high costs associated with the acquisition of real estate. However, you should not be constantly worried about your finances, as this will take a toll on your mental health and psychological well-being.

Instead, you should be positive and look forward to acquiring a new property, as it signifies a new beginning for your home and it’s occupants. When it comes to your monetary worries, financial institutions such as banks and licensed money lenders can help you deal with them.

One such financial institution is Soon Seng, which offers low interest bridging loans. It is one of the best bridging loans offered by licensed money lenders due to it’s competitive interest rates and ease of application. Interested individuals can apply for it with an online loan application form, making it convenient and accessible for them. Contact us via email at [email protected] or via phone at 6292 5693 to discuss how we can help you!

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