Bridging loans: buy before you sell.
Buying your next home before the current one is sold means the downpayment is due before your sale proceeds arrive. A bridging loan fills that gap for a few months.
What is a bridging loan?
A short-term bank loan that covers the downpayment on your new home, repaid from the proceeds of the home you are selling. As an example of current terms, DBS offers up to 20% of the purchase price, repaid within 6 months. Terms differ between banks, so compare actual offers.
How is it repaid?
You usually pay interest only during the loan, then repay it in full when your sale completes and the proceeds come in. Because the tenure is short, the cost is a few months’ interest on the amount borrowed.
What do banks look for?
- Evidence that your current home is being sold. What counts differs between banks.
- Enough sale proceeds, after the loan and CPF refund, to repay the bridging loan.
- Your income and existing debts.
When does it make sense?
- You have found the home you want and cannot wait for your sale to complete.
- Your sale is already agreed, so the proceeds are reasonably certain.
When to be careful
- If your sale is not yet agreed, a bridging loan adds risk: if the sale is delayed or the price drops, the loan still has to be repaid.
- Buying private before selling your HDB also means ABSD upfront for most couples. See ABSD when upgrading.
- Map the dates first: sell-and-buy timelines and My numbers show whether the cash works.
Official references
Checked 11 November 2026. General guidance: confirm your eligibility, financing and transaction conditions for your circumstances before committing.