If I buy EC, can use DPS + Bridging Loan?

If I buy EC, can use DPS + Bridging Loan?

Yes of course, in fact 1 of the criteria for EC bridging loan is must be DPS scheme (deferred payment scheme).

A bridging loan package help buyers who have CPF in their OA but cannot get 75% loan, and thus it'll function as an instrument to get up to 80% loan, allowing buyers to utilize the CPF in their OA. 80% of the HDB Flat value would be utilized (less off any outstanding loan). You'll need an LOI from the bank to get bridging loan (as it serves as an add on); however you would need to sell your property earlier so as you can "activate" the bridging loan.

Buyer in this case also asked about bridging loan as an add on as they would have enough cash to do showfunds by December 2022, but taking on a loan first.ย 

1) Take loan now with bridging loan and DPS
2) Revise loan before exercise in Dec (by showing funds)

In this case, this was our following advise

  1. Yes. Take DPS, take up the bridging loan.
    You're able to cancel the bridging anytime before disbursement.
    * No cancellation fee no penalty (assuming loan + bridging hit 80%)
    * Do check with the relevant bankers regarding this

  2. Once LO signed, there will be penalty if thereโ€™s any changes to the LO. Since Copen booking day is on 22nd OCT, assuming hdb takes 1 week to approve, by 22nd Nov they have to exercise S&P. (Not in time)

  3. Propose DPS, upfront 20% all cash, use CPF for stamp duty.
    Buyer can secure loan later, they can secure loan just before TOP

For reference, I'll be sharing with you a chart explaining the deferred payment scheme.

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