What Does It Mean?
A bridging loan is a short-term loan (typically up to 6 months) that covers the funding gap when you buy a new home before receiving the sale proceeds of your existing one. It lets upgraders pay the down payment on the new property while waiting for the old sale to complete. Interest is charged for the bridging period; once your old property sale completes, the proceeds repay the bridging loan.
Why It Matters
A bridging loan solves the classic upgrader timing problem — needing the down payment for your new home before your old one is sold. Used well it smooths the transition; used carelessly, its short tenure and interest can bite if your existing sale drags on.
Where to Find This on ShiokNest
- Mortgage Calculator
- Upgrade Path Planner
Look for the tooltip icon next to this metric on ShiokNest for a quick reminder of its definition.
Official Sources
Loading quiz...
Frequently Asked Questions
How long is a bridging loan?
Does a bridging loan count towards TDSR?
This glossary article is auto-generated from ShiokNest's financial data and updated periodically. Rates and figures are current as of July 2026. Check official sources for the latest.