Key Facts about Bridging Loans in Singapore

Key Facts about Bridging Loans in Singapore 24/11/2022

Bridging loans is a type of loan that helps bridge the gap between your existing loans. They may be used for several purposes. They are probably the most misunderstood form of loan that exists in the financial sector.

A licensed moneylender in Singapore would understand this. If you work with one, you can get proper assistance about loans and their terms. Bridging and mortgage loans are the most granted loans to residents in Singapore.

This blog will help you understand the whole bridging loan process. Learn how this loan can be used strategically and who they are intended for.

What Are Bridging Loans?

These so-called temporary or short-term financing solutions are designed with property developers and buyers in mind. As the term “bridging” suggests, these loans are designed to get you through a period between two financial transactions.

Who Can Use Bridging Loans?

You may use a bridging loan to pay the deposit on a new home till the proceeds from your old one arrives, or when you’ve arranged a more permanent funding solution like a mortgage.

Perhaps you found a property at a very low price that you wish to invest in, but you don’t want to sell the existing home. Getting a mortgage might take time, so while you’re applying for it, a bridging loan will be most helpful.

In a nutshell, these loans are convenient for anyone with access to finances in a short time.

Types of Bridging Loans Available

Different Types of Money Loans

There are two types of bridging loans you can apply for that will help you “bridge” the period between two transactions.

Capitalized Interest Bridging Loan

This is the best solution for those unwilling to service two loans simultaneously. Here, the bank takes over the whole payment for the new home. The repayment will be activated once the original property is sold, and the interest will be paid together with the entire bridging loan amount.

Simultaneous Payment Bridging Loan

As the name implies, you can pay off both the bridging and housing loans simultaneously. You will be given a 12-month period to sell the old property and repay the loan.

Advantages of Getting a Bridging Loan

Compared to other available financing options, bridging loans offer numerous advantages. First, it is the fastest loan to arrange. It can be used for all types of real estate transactions and has rather flexible lending criteria.

Secondly, bridging loans are known as the cheapest option to secure immediate cash when in need. Because the repayment isn’t required for the first few months, borrowers are given time to get things in order.

Solve Company Cash Flow Crisis

It is common for companies to resort to bridge loans when in need of immediate cash. Waiting for approval of long-term financing can take time, and you simply don’t have the luxury to wait.

Use commercial bridge loans when in need of immediate cash for things like office renovation or restoration. Or maybe you found a great space for your new office and need to move fast? Bridging loans can be a lifesaver in such cases.

Capital Funds Investments: Licensed Moneylender and Trusted Partner

Regardless of the reason you’re taking out a bridging loan, you will always have a trusted partner in us. Armed with a list of different loan types, our experts at Capital Funds Investments will gladly recommend the most suitable one for your needs.

Urgent cash resources are our specialty, and we provide you with that much-needed second chance to get ahead in life. Fill out the online loan application and get the funds you need today!

Related Blogs

Empowering Financial Freedom: The Unmatched Benefits of Customizable Private Loans 21/02/2024

Empowering Financial Freedom: The Unmatched Benefits of Customizable Private Loans

In today's dynamic financial landscape, individuals and businesses alike seek avenues to realize their aspirations, expand their ventures, or simply...

Continue Reading
Navigating Safe Borrowing in SG: A Guide to the Moneylender Act Singapore 2008 28/12/2023

Navigating Safe Borrowing in SG: A Guide to the Moneylender Act Singapore 2008

The last thing you want to experience during a financial crisis is to run to an unscrupulous moneylender. In Lion...

Continue Reading