Singapore Bridging Loan Interest Estimator 2026 — Capitalised vs Monthly Interest, Full Property Transaction Net Position, CPF OA Refund, Sale Proceeds Calculation & Week-by-Week Interest Accrual for Simultaneous Buy-Sell in Singapore

A Singapore bridging loan (also called a swing loan) is a short-term loan that bridges the gap between buying a new property and receiving the sale proceeds from an existing property. You need one when: you have exercised an Option to Purchase (OTP) on a new property; your new property completion date falls before your existing property sale completes; you do not have enough cash on hand (outside of CPF and the new mortgage) to pay the remaining new property balance at completion. The bridging amount = New Property Balance Due at Completion minus Available Cash. The bridging loan is repaid in one lump sum (or with monthly interest plus lump sum principal) when your existing property sale completes. It is fundamentally different from a regular loan — it is a specific short-term solution for a timing gap in Singapore’s simultaneous property transaction.

Singapore bridging loan interest is calculated using the actual days method: Interest = Bridging Loan Amount × Annual Interest Rate × Number of Days ÷ 365. Example: S$300,000 bridging at 7.25% p.a. for 56 days (8 weeks): Interest = S$300,000 × 0.0725 × 56 ÷ 365 = S$3,337. For capitalised bridging, this interest is added to the outstanding principal and repaid in a single lump sum when the old property sale completes: Repayment = S$300,000 + S$3,337 = S$303,337. For monthly interest bridging, the interest is paid each month (approximately S$1,812/month for S$300,000 at 7.25%) and only the principal S$300,000 is repaid at completion.

Both types have the same total interest cost. The difference is timing of payment: Capitalised (swing loan): no payments during the bridging period; all interest accrues daily, is added to the outstanding balance, and the full amount (principal + accumulated interest) is repaid from old property sale proceeds in one lump sum. Monthly interest: you pay the interest portion each month during the bridging period; only the principal is repaid at completion. Example: S$500,000 at 7.25% for 12 weeks. Monthly interest: approximately S$3,021/month × 3 months = S$9,063 paid monthly + S$500,000 at end. Capitalised: S$509,063 paid as one lump sum at end. Total cost identical. Choose capitalised if your monthly cash flow is tight during the bridging period (e.g., both new and old property mortgages running simultaneously). Choose monthly if you prefer smaller staged payments and a cleaner final settlement.

Singapore bridging loan rates in 2026 are typically quoted as the Singapore Prime Rate plus a bank-set spread: Singapore Prime Rate in 2026: approximately 5.25% per annum. DBS / POSB: Prime + 2% = approximately 7.25% p.a. OCBC: Prime + 2%–2.5% = approximately 7.25%–7.75% p.a. UOB: Prime + 2%–3% = approximately 7.25%–8.25% p.a. Standard Chartered: Prime + 2.5% = approximately 7.75% p.a. Maybank: Prime + 2%–3% = approximately 7.25%–8.25% p.a. Rates are indicative — the exact rate depends on your relationship with the bank, loan amount, and credit assessment. Bridging loans are typically offered only by the bank that is also providing the mortgage for the new property (bundle requirement). Always confirm the exact bridging rate with your banker before exercising the OTP.

Singapore banks typically offer bridging loans for a maximum of 6 months (approximately 26 weeks). The standard expected bridging period is 6–12 weeks. The bridging period starts when the new property completion occurs (money is disbursed) and ends when the old property sale completes and the loan is repaid. If the old property sale is delayed beyond 6 months, the bank may require: extension of the bridging facility (usually requires re-application and may incur an extension fee); conversion to a different loan product; bridging repayment from other sources (your savings). In practice, most Singapore simultaneous property transactions complete within 8–16 weeks. Ensure the buyer of your old property has their financing fully approved before accepting their OTP to minimise the risk of delayed completion and extended bridging period.

When you sell a property that was purchased using CPF Ordinary Account (OA) funds in Singapore, the CPF Board requires the full CPF OA withdrawal plus accrued interest at 2.5% per annum to be refunded to your CPF OA account at completion. This refund comes out of your sale proceeds — it is not optional and significantly reduces your net cash. Example: You used S$200,000 from CPF OA to buy your property 8 years ago. CPF accrued interest: approximately S$200,000 × [(1.025)^8 − 1] = approximately S$43,500. Total CPF refund required: S$243,500. If your property sale price is S$900,000 with S$300,000 outstanding mortgage: net proceeds before CPF refund = S$600,000. After CPF refund: S$600,000 − S$243,500 = S$356,500 — a major reduction. This Mode 2 calculator factors the CPF refund (which you input manually from your CPF statement) to show the true net proceeds available after bridging loan repayment.

Typically, Singapore banks only offer bridging loans in conjunction with a new home loan from the same bank. The bridging loan is usually a condition attached to the mortgage approval. Scenarios where this applies: you are buying a new property with 100% cash (no mortgage) — banks may still offer a bridging loan as a standalone product, but you would need a strong banking relationship and substantial assets; your new mortgage is from Bank A but you want a bridging loan from Bank B — this is generally not possible; each bank bundles its bridging facility with its own mortgage product. If you genuinely do not need a new mortgage (full cash purchase), you likely also do not need a bridging loan — the bridging exists specifically to fund the gap between your new mortgage disbursement (which may be delayed relative to completion) and your old property proceeds. Speak directly with your banking relationship manager; high-net-worth clients with substantial assets may receive more flexible bridging arrangements.

Singapore real estate agent commission for property sellers in 2026: HDB flat: seller’s agent typically 1% of sale price (no cap imposed by CEA); Private property (condo, landed): seller’s agent typically 1%–2% of sale price; the most common rate for private property is 1%. CEA (Council for Estate Agencies) does not regulate commission rates — they are negotiated between seller and agent. Additional considerations: some sellers negotiate a fixed fee (e.g., S$5,000–S$8,000) rather than a percentage; some agents charge a lower percentage (0.5%) if the same agent also represents the buyer (dual representation); always get the commission agreement in writing in the Option to Purchase or separate commission agreement. In this calculator, Mode 2 allows you to enter the exact commission percentage to calculate the precise deduction from your sale proceeds. Entering 1% for a S$1,000,000 property = S$10,000 commission deduction.

Singapore seller’s legal and conveyancing fees for a property sale in 2026: Solicitor’s fee for acting on the sale: approximately S$2,000–S$4,000 depending on property value and firm; Standard conveyancing fee scale (Law Society of Singapore): S$1,800 for first S$500,000, then S$400–S$800 per additional S$500,000 increment; Disbursements (title searches, CPF discharge, land registry): approximately S$200–S$500. Total typical seller legal fees: S$2,500–S$4,500. If there is an outstanding mortgage to discharge: additional S$200–S$500 for discharge of mortgage. HDB flat sale legal costs may differ — HDB provides its own standard form conveyancing for resale transactions at lower fees. Budget S$3,000 as a reasonable estimate for private property and S$1,500–S$2,500 for HDB in Mode 2 of this calculator. These fees are deducted from your sale proceeds by your solicitor before the net cash is remitted to you.

Additional Buyer’s Stamp Duty (ABSD) creates a critical timing constraint for Singapore bridging loan planning. Singapore citizen couples: buying a second residential property incurs ABSD at 20% of purchase price; however, if they already own one residential property and sell it within 6 months of the new property completion, they can apply for ABSD remission (refund). The 6-month window: starts from the date of completion of the new property purchase; the existing property must be sold (completion, not OTP exercise) within this 6-month window; if the 6-month deadline is missed, ABSD remission is lost — potentially S$75,000–S$300,000+ on higher-value properties. Bridging loan implication: the bridging loan period must ideally be well within 6 months; if the old property sale is delayed beyond 6 months (buyer financing issues, legal complications), the ABSD becomes permanently payable. Use Mode 2 and test a “worst case” scenario of 24–26 weeks bridging period when planning. Also see our ABSD Calculator and ABSD Remission Calculator in the Property section.

If the buyer of your Singapore property withdraws (within the option period) or is unable to complete (financing fails, legal issues): The OTP deposit (typically 1%) is forfeited by the buyer — this becomes your income; however, you lose the buyer and must re-list. Impact on bridging loan: the bank bridging loan becomes due when the agreed sale does not complete; if you cannot repay immediately, you need to refinance or extend the bridging facility (not guaranteed and may cost additional fees); if no extension is available, you may need to liquidate other assets or take a personal loan to repay. Risk mitigation: before accepting a buyer’s OTP on your old property, ensure they have In-Principle Approval (IPA) from a bank for their mortgage; request a larger option deposit (2%–3% instead of 1%) as commitment surety; ensure your buyer’s financial position is solid before committing to your own new purchase and bridging loan; have emergency liquidity (savings or an overdraft facility) to cover bridging repayment if needed. The worst-case bridging scenario (much longer period, possibly selling at a lower price under pressure) should be stress-tested in this calculator before exercising any OTP.

For Singapore individuals purchasing residential property: bridging loan interest on a property acquired as a personal investment or for own occupation is generally NOT tax deductible under personal income tax. IRAS does not allow individuals to deduct interest on residential property loans for personal income tax purposes (unlike some countries). For Singapore companies or individuals who acquire residential property and rent it out (rental income generating): Interest on loans (including bridging loans) to acquire the rented property may be deductible against rental income under Section 14 of the Income Tax Act. The bridging loan must be for the specific property generating rental income. For non-residential (commercial, industrial) property: interest on bridging loans to acquire income-producing commercial property is generally deductible against rental income. Seek advice from a Singapore tax professional at a Big Four or local accounting firm for your specific situation. The IRAS website (iras.gov.sg) has guidance on property rental income deductions.

If you are selling a private property and buying an HDB (BTO or resale) in Singapore, a bridging loan may or may not be needed depending on timing: HDB BTO: BTO flats are typically paid in progressive stages over 2–4 years; the final balance is due at key collection (completion); if your private property is sold before key collection, no bridging is needed; if key collection occurs before your private property sale completes, a bridging loan may be needed. HDB resale flat: completion is typically 8–10 weeks from Option exercise; if you plan the sale of your private property to complete around the same time, the overlap may create a gap requiring bridging. Additional HDB-specific consideration: HDB resale transactions involve HDB’s approval process which takes 6–8 weeks; buyer of your resale HDB must also have their HDB Loan Eligibility (HLE) or bank In-Principle Approval. If you are an Singaporean PR selling a private property to buy an HDB, be aware of the 15-month wait-out period (implemented from September 2022) — you must wait 15 months after selling a private property before buying a resale HDB.

Singapore bridging loan documentation (typically required alongside your mortgage application): Personal identification: NRIC (Singapore citizen/PR) or passport + valid work pass (foreigner); Income proof: last 3 months payslips + last 2 years CPF contribution history (for employees); last 2 years Income Tax NOAs (for self-employed); New property documents: signed Option to Purchase (OTP) or Sale and Purchase Agreement (S&P); existing property sale documents: Option to Purchase from your buyer (with completion date); or draft S&P; your existing property title deed (for bank to assess security); your existing property outstanding mortgage statement; CPF statement showing housing withdrawal with accrued interest; conveyancing solicitor’s appointment letter. The bank will assess: bridging loan amount = new property balance − available cash; security = old property (the bank holds a charge until bridging is repaid); ability to repay from old property proceeds — they want to see the old property sale OTP before approving the bridging. Apply as early as possible — ideally when you exercise the OTP on your new property.

Singapore bridging loans are unique in that they have their own LTV considerations separate from the main property mortgage. The bridging loan is typically structured as a short-term advance secured against the expected proceeds from the old property sale. Banks assess the bridging amount against: the agreed sale price of the old property (from the OTP); the outstanding mortgage and CPF refund on the old property; the expected net proceeds available for repayment. Maximum bridging loan: most banks will not lend more than the expected net proceeds from the old property sale (after deducting mortgage, CPF refund and fees). There is no specific statutory LTV cap for bridging loans from MAS (it applies mainly to mortgage loans). Practical limit: if your net sale proceeds are S$400,000, the bank will bridge up to S$400,000 — no more, as they need assurance of full repayment at completion. The total of your new mortgage plus bridging loan must also comply with TDSR (Total Debt Servicing Ratio) regulations — bridging loan repayment may be included in TDSR calculation. See our TDSR Calculator for more.

HDB owners can obtain a bridging loan from commercial banks but there are specific considerations: HDB loans: HDB itself does not offer bridging loans; if you have an HDB mortgage on your existing flat, you must repay it in full at completion; the HDB mortgage will also freeze your CPF usage for new property if you still own the old HDB at time of application. Bank bridging for HDB-to-private upgrade: most Singapore banks will offer a bridging loan if you are selling your HDB and buying a private property; the HDB OTP from your buyer + your new private property OTP is required. Key HDB rules affecting bridging: if buying a second HDB, you cannot own both simultaneously (you must sell the first HDB within a specified period); if upgrading from HDB to private property, ABSD may apply (2% for Singapore citizens buying a second property if the first HDB is not sold before new private property completion); ensure the timeline is clear with your HDB resale solicitor and your bank. HDB resale flat sellers typically receive proceeds within 8–12 weeks of OTP exercise — confirm the exact completion timeline so the bridging period can be sized accurately.