Bridging loans for EC purchase are designed to help EC buyers complete the purchase of a New Launch EC before selling their existing HDB.
The bridging loan amount is the difference between the purchase price or valuation of the new EC, whichever is lower, and the applied home loan amount. To be eligible, the EC buyers have to opt for the Deferred Payment Scheme.
Bridging loan is short term. It is a temporary loan to help EC buyers to tide over their short term financial needs while they awaits the realization of the proceeds of sales of their existing HDB.
Following is a simple illustration for your easy reference: