Need opinion and advises on bridging loan

[Ryan Shah]

I just sold my 5 rm HDB flat. However my 1st appt will be in Nov as requested by my buyer. I am intending to buy a condo and move in by end Dec. I have cash in hand for the 1% and 4% of cash for the OTP (downpayment). However due to the delay of my 1st appt, I dun think I will have enough time to wait for my 2nd appt to get cheque from my sale of my current house and pay the remaining 15% of the condo. So my agent suggest that I take bridging loan and pay the 15%. And once I got my cheque and cpf refunded, I can settle the bridging loan. The interest rate is 5%. Is it advisable? Is it possible to pay 15% using part of my current cpf balance and cash (taken from bridging loan? Will bank allow me to reimburse back from cpf, after I get my refund. Thanks

[Regulators]

bridging loan interest is higher than normal loan. i would go for a normal loan (fixed for one year) that allows u to redeem after that with no penalty. the interest rate will be lower than bridging loan but higher than standard 2-3yr lockin rates but i think it is still better. got to check with ur bankers for the best rate, but they are quite competitive now

I just sold my 5 rm HDB flat. However my 1st appt will be in Nov as requested by my buyer. I am intending to buy a condo and move in by end Dec. I have cash in hand for the 1% and 4% of cash for the OTP (downpayment). However due to the delay of my 1st appt, I dun think I will have enough time to wait for my 2nd appt to get cheque from my sale of my current house and pay the remaining 15% of the condo. So my agent suggest that I take bridging loan and pay the 15%. And once I got my cheque and cpf refunded, I can settle the bridging loan. The interest rate is 5%. Is it advisable? Is it possible to pay 15% using part of my current cpf balance and cash (taken from bridging loan? Will bank allow me to reimburse back from cpf, after I get my refund. Thanks

[Ryan Shah]

bridging loan interest is higher than normal loan. i would go for a normal loan (fixed for one year) that allows u to redeem after that with no penalty. the interest rate will be lower than bridging loan but higher than standard 2-3yr lockin rates but i think it is still better. got to check with ur bankers for the best rate, but they are quite competitive now

Bro, guess u misinterpret the whole picture. I am taking 75% bank loan for my condo with a fixed interest of 2 yrs lock in. I have cash 1% and 5% for the otp (downpayment). However for my 15% cpf downpayment, I have insufficient now cos my proceeds from my current sale of hdb will only come in january 2011. I need to move out by dec, so my agent suggest i take a bridging loan of this 15% first in order to complete by december. And once my cpf from my current sale of hdb comes in, I pay back the 15% using cpf.

[devilplate]

I just sold my 5 rm HDB flat. However my 1st appt will be in Nov as requested by my buyer. I am intending to buy a condo and move in by end Dec. I have cash in hand for the 1% and 4% of cash for the OTP (downpayment). However due to the delay of my 1st appt, I dun think I will have enough time to wait for my 2nd appt to get cheque from my sale of my current house and pay the remaining 15% of the condo. So my agent suggest that I take bridging loan and pay the 15%. And once I got my cheque and cpf refunded, I can settle the bridging loan. The interest rate is 5%. Is it advisable? Is it possible to pay 15% using part of my current cpf balance and cash (taken from bridging loan? Will bank allow me to reimburse back from cpf, after I get my refund. Thanks

if u nid CPF to pay for the next 15% and cpf monies cannot return back to ur OA in time....bridging loan is the only way i can tink of too....yes higher interest(shd be based on prime rate)...anyway shd be only for around 1mth or so...once ur cpf monies r returned back to ur OA...u can use it to pay back the bridging loan....tok to a banker and cpf as well....mabe they got better solution.

[Regulators]

oic, hdb sales is really a hassle. if you have relatives to borrow the 15% from, would be great, but if cannot, then u got not much of an option. i can lend u for 10% interest, but will make me an illegal money lender...lol

Bro, guess u misinterpret the whole picture. I am taking 75% bank loan for my condo with a fixed interest of 2 yrs lock in. I have cash 1% and 5% for the otp (downpayment). However for my 15% cpf downpayment, I have insufficient now cos my proceeds from my current sale of hdb will only come in january 2011. I need to move out by dec, so my agent suggest i take a bridging loan of this 15% first in order to complete by december. And once my cpf from my current sale of hdb comes in, I pay back the 15% using cpf.

[cashrich]

Problems that can be solved by money is not a problem at all..

What kind of advise do you expect to get? Talk to a banker lah!

Common sense...
1. No need loan is better
2. If need loan, lower interest is better
3. Weight against all other options
4. Why get yourself into this state in the first place? Create problem for Fcuk?

[voices]

Can consider increasing your loan to a higher amount. As of now. the interest from CPF is higher than your home loan. It make sense to borrow more. See that there isn't any penalty for capital repayment should the situation change.

Please ignore, just realise you are on the max 80% loan

[mcmlxxvi]

I ever took bridging loan from the same bank giving me the mortgage. A few hundred dollars or even thousand plus is nothing compared to the peace of mind and guarantee the transaction will be ok.

[spikey69]

yes - u can do the bridging loan. I've done it too before. It was a 6% interest rate. But u have to seek approval early from the bank and make sure that your lawyers are in the picture or else everything blows up when u don't have the 15% ready. Remember to stand by funds for your stamp duty as well (which u cannot use a bridging loan for).