Bridging Loan Singapore 2026: Rates, Limits and Risks

Calculator, piggy bank and model house on a blue background — A bridging loan covers the gap between paying for the condo and getting your flat money. Photo: Sasun Bughdaryan on Unsplash

At a glance

Tenure: Up to 6 months, repaid from your HDB sale proceeds
How much: Commonly up to about 20% of the new price, capped by expected cash proceeds plus CPF refund
Rates (Oct 2026): About 4.25% (DBS, prime-pegged) to around 6% a year
TDSR: Not applied if the loan is repaid within 6 months (MAS)
Checked: 14 October 2026

How a bridging loan works

A bridging loan pays the down payment on your next home before the money from your HDB sale arrives. When an HDB resale completes, the proceeds first clear your outstanding housing loan, then refund your CPF, and only then pay you the rest in cash. That happens at the completion appointment, about 8 weeks after HDB accepts the resale application. If your condo payment falls due before that, the bank lends you the gap and takes it back in one sum when your flat completes. We checked the rules below against MAS, HDB and CPF pages and current bank rates on 14 October 2026.

There is no HDB bridging loan. The HDB concessionary loan is a long-term housing loan, so upgraders go to a bank, often the same one that is giving them the condo loan.

Banks offer two ways to service it:

Capitalised interest: nothing to pay each month; interest is added to the balance and repaid at completion.
Simultaneous repayment: you pay interest monthly alongside the new home loan, which costs slightly less in total but raises your monthly outgoings.

How much banks will lend

The loan is capped by what your sale will release, and by what you actually need for the down payment.

What the bank looks at	Why it matters
Expected cash proceeds	Sale price less outstanding loan, CPF refund and sale costs
Expected CPF refund	Principal plus accrued interest that will return to your Ordinary Account
Down payment on the new home	Commonly up to about 20% of the price, the part beyond the minimum 5% cash
Proof of sale	Exercised OTP on your flat, CPF withdrawal statement, outstanding loan statement

The 1% option fee on the new home is not covered; you pay that from your own cash. To see your likely proceeds before you talk to a bank, run your flat through the sell-and-upgrade calculator.

Rates and fees in 2026

Bridging loans cost more than home loans, but the term is short.

Cost	Typical figure (October 2026)
Interest	About 4.25% a year at DBS (pegged to its prime rate) to around 6% elsewhere
Processing fee	About 1% of the loan, often waived if you take the home loan with the same bank
Legal and valuation	S$1,500 to S$3,000
Late payment	3% to 5% above the prevailing rate on overdue amounts

Rates change with each bank’s board or prime rate, so get a written quote with your home loan approval in principle.

TDSR and loan limits

MAS lists bridging loans whose balance will be repaid within 6 months among the loans that TDSR does not apply to. That keeps the bridging loan from eating into the 55% income limit. Your condo loan is still fully tested at the 4% stress rate, and banks apply their own checks.

The bigger question is the loan-to-value limit. MAS caps a bank loan at 75% when you have no other housing loan, but at 45% if one is outstanding. On the day you apply for the condo loan, your HDB loan may still be on your record. Ask your bank in writing how it treats a flat that is sold but not yet completed, because that answer can change the down payment by hundreds of thousands.

Worked example

A married couple, both citizens, sell their 4-room for S$650,000. The buyer has exercised the option. They owe S$180,000 on the HDB loan and will get S$200,000 of CPF back, leaving about S$255,830 in cash after a 2% plus GST commission. They buy a resale condo for S$1.6 million and pay the 5% cash part (S$80,000) from savings.

The remaining 20%, S$320,000, is due when the condo completes, about 3 months before their flat does. They have S$40,000 in their Ordinary Accounts, so they bridge S$280,000.

Item	Low	High
Interest for 3 months	S$2,975 (4.25%)	S$4,200 (6%)
Processing fee	S$0 (waived)	S$2,800 (1%)
Legal and valuation	S$1,500	S$3,000
Total cost	S$4,475	S$10,000

One catch. Because they still own the flat when they sign for the condo, ABSD of 20% (S$320,000) is due within 14 days. As a married couple buying jointly, they can claim it back if the flat is sold within 6 months, but the cash has to come first. Our ABSD guide explains the refund.

Risks

The flat sale is delayed or falls through. You still owe the bridging loan, and an extension past 6 months is not automatic. Some lenders convert an overdue bridge to a much more expensive loan.
The sale price is lower than planned. The loan is sized on expected proceeds. A low valuation or a buyer who backs out shrinks the money that repays it.
Two housing loans at once. If the flat does not complete, you carry the HDB loan, the condo loan and the bridge together.

Alternatives

Option	How it works	Trade-off
Sell first, then buy	Wait for the flat to complete, then buy with cash and CPF in hand	No ABSD and the full 75% loan, but you may need to rent
Extension of stay	Stay in the sold flat up to 3 months after completion, if the buyer agrees	Only if you have committed to a completed property
Use cash and CPF already on hand	Pay the down payment from savings	Needs large savings; no bridge interest
Bridging loan	Bank covers the gap for up to 6 months	Interest and fees; ABSD may still apply

For most households, selling first is simpler. Our HDB to condo upgrading guide compares the two orders in full.

What to check before you sign

Get approval in principle for both the condo loan and the bridging loan before you grant the option on your flat.
Ask how the bank treats your outstanding HDB loan for the LTV limit.
Line up the condo completion date against your flat’s completion date.
Check the bank’s exit clauses if your flat sale is cancelled.

This page is general information checked on 14 October 2026. Rates and bank terms change; confirm with the lender.

Common questions

Does HDB offer a bridging loan?

No. The HDB concessionary loan is a long-term housing loan, not a bridging loan. Upgraders who need short-term money for the next down payment go to a commercial bank.

How long can a bridging loan last?

Usually up to 6 months. MAS only exempts a bridging loan from TDSR if the balance will be repaid within 6 months, and most banks set the same limit. If the sale runs late, an extension is not automatic and may cost more.

Do I need to have sold my flat before applying?

Yes, in practice. Banks ask for proof of the sale, such as the exercised Option to Purchase on your flat, your CPF withdrawal statement and your outstanding loan statement. A flat that is only listed does not count.

Can a bridging loan pay for ABSD?

Do not count on it. Banks size the bridging loan on the down payment for the new home. If you still own the flat when you buy, ABSD of 20% for a citizen is due within 14 days, so plan that money separately or time the purchase after your flat sale completes.

Is a bridging loan worth the interest?

Often yes, because the period is short. Borrowing S$280,000 for 3 months at 4.25% costs about S$2,975 in interest. The bigger cost is usually ABSD or a lower loan limit if you buy before your flat sale completes.

Get a free valuation

Tell us your block and flat type. We'll send recent prices for your block and nearby blocks, and what a sale would leave you after your loan and CPF refund.

Sources

Facts on this page were checked against these sources on 14 October 2026.