Ethoz Temporary Bridging Loan Review ᐈ Check Rates

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Content Overview

Popular Bridging Loans
CIMB Temporary Bridging Loan
Maybank Temporary Bridging Loan
Singapura Finance Temporary Bridging Loan
ORIX Temporary Bridging Loan

Annual Interest Rate

$1,000,000.00

Max Loan Amount

1.5%

Processing Fee

Loan Amount (S$)

Tenure (Months)

Monthly Repayment aaa

Current Ethoz Bridging Loan Loan Rate

Today's bridging loan loan interest rate trends for Ethoz - As of Friday, February 27th, 2026, the lowest bridging loan loan interest rate Ethoz charges stands at 6%. Rates are not guaranteed and are based on each applicant's own credit risk.

Product Review

Ethoz, a leading non-bank financial institution in Singapore, offers a highly accessible temporary bridging loan scheme designed to support local businesses in need of working capital during uncertain economic periods. Tailored to SMEs and established enterprises, this loan product provides sizable funding with minimal entry barriers.

With an annual interest rate of 5.5% and a competitive processing fee of just 1.5%, the Ethoz temporary bridging loan is one of the more transparent financing options available to companies seeking fast liquidity without burdensome long-term obligations. Unlike many traditional banks, Ethoz does not impose a minimum application requirement, making it attractive for businesses with urgent or intermediate cash flow needs.

How much do you want to borrow?

$50,000

$500,000

Over what period would you like to pay?

1 Month

60 Months

Your monthly payment

337

Rate Disclaimer*

*Based on a $20,000 loan at 6.95% APR over 5 years, read more

Borrowers can access loan amounts up to S$1,000,000, with a flexible tenure of up to 3 years. A one-time S$1,500 commitment fee applies upon loan approval, but there are no annual fees or early repayment penalties, allowing greater financial flexibility.

This product stands out for companies with at least S$750,000 in annual turnover and a business history of two years or more. With no lock-in period and a straightforward approval process, Ethoz’s temporary bridging loan serves as a strategic solution for business continuity and short-term growth financing.

Key Factors

Flexible Loan Ceiling for Growth Ambitions
With a maximum loan quantum of up to S$1,000,000, Ethoz’s temporary bridging loan is structured to grow with your business needs. This upper limit allows SMEs to fund expansion, strengthen working capital or manage seasonal cash flow gaps without compromising financial stability.

Reasonable Qualification Criteria
The eligibility conditions are notably inclusive. Businesses only need S$750,000 in annual turnover and 2 years of incorporation. These thresholds make the loan accessible to a wide segment of the SME sector, particularly firms in early growth stages that often face challenges meeting traditional banking requirements.

Transparent Cost Structure
The loan carries a 5.5% annual interest rate and a 1.5% processing fee. Ethoz also applies a one-time commitment fee of S$1,500. There are no hidden annual charges, no penalty fees and no lock-in period. This transparency ensures repayment remains predictable and manageable throughout the loan tenure.

Customizable Tenure to Match Business Cycles
The loan tenure of up to 3 years enables businesses to align repayments with operational and revenue cycles. For example, borrowing S$100,000 over 5 years results in a fixed monthly instalment of S$1,910.12 with a total repayment amount of S$114,606.97. This structured repayment schedule provides clarity for long-term cash flow planning.

Ethoz Fees

Interest Rate
Ethoz applies a flat annual interest rate of 5.5%, offering straightforward cost predictability. For instance, a loan of S$100,000 over 5 years results in S$14,607 in total interest, which is already factored into the monthly repayment structure.
Processing Fee
A 1.5% processing fee is charged upfront based on the approved loan amount. This fee is deducted at disbursement, meaning if you borrow S$100,000, S$1,500 will be allocated to cover processing costs.
Commitment Fee
Borrowers are also subject to a one-time commitment fee of S$1,500, which is charged regardless of the loan amount or tenure. This fee is not recurring and is payable only once upon acceptance of the loan offer.
No Penalty Charges
Ethoz does not impose any penalty fees for late payment, early repayment or loan restructuring. This zero-penalty policy supports financial flexibility and risk management, particularly for businesses operating in volatile sectors.
No Annual Maintenance Fees
Unlike traditional financing institutions, Ethoz does not charge annual maintenance or administrative fees, keeping the loan cost transparent and consistent throughout the repayment period.

Overview of Interest Rates

Business Term
Bridging Loan
Working Capital
P2P Lending
Property Equity
B2B

Lender	Annual Interest Rate	Processing Fee	Annual Fee	Monthly Repayment
Anext	7%-10%	1% or S$200	No	$2,970.18
DBS	7%	1%	No	$2,970.18
Maybank	7%-10%	1-2%	No	$2,970.18
OCBC	7%	1-2%	No	$2,970.18
Orix	8.5 %	1-2%	No	$3,077.48
Ethoz	7-10%	1.25%	One time off $1,500 Commitement Fee	$2,970.18
Funding Societies	9.6 %	4%	No	$3,157.61
SCB	9.00 %	1-3%	$288	$3,113.75

Lender	Annual Interest Rate	Processing Fee	Annual Fee	Monthly Repayment
DBS	4.75 %	1-1.5%	No	$2,813.54
OCBC	5%	1-2%	No	$2,830.69
Maybank	5%	1.5-2%	No	$2,830.69
Singapura	5 %	1-2%	No	$2,830.69
Orix	5 %	1-2%	No	$2,830.69
SCB	5.5 %	1.5%	No	$2,865.17
RHB	5.5 %	1-2%	$288	$2,865.17
Ethoz	5.5 %	1.5%	One time off $1,500 Commitment Fee	$2,865.17
CIMB	5.5 %	1.8%	No	$2,865.17
Hong Leong	5.5 %	1-2%	No	$2,865.17

Lender	Annual Interest Rate	Processing Fee	Annual Fee	Monthly Repayment
DBS	7.75 %	1.5%	No	$3,023.54
OCBC	6.5 %	1-2%	No	$2,934.92
CIMB	6.5 %	1-2%	No	$2,934.92
RHB	7 %	1-2%	No	$2,970.18
SCB	7 %	1-2%	No	$2,970.18
ORIX	7 %	1-2%	No	$2,970.18
Maybank	7.88 %	1-2%	No	$3,032.85
ETHOZ	9.75 %	1.50%	No	$3,168.64
Funding Societies	12 %	7%	No	$3,336.67

Lender	Annual Interest Rate	Processing Fee	Annual Fee	Monthly Repayment
Validus	1.3 %	2.5-5%	No	$2,583.48
Funding Societies	1.65 %	3-8%	No	$2,606.26

Lender	Annual Interest Rate	Processing Fee	Annual Fee	Monthly Repayment
ORIX	4.5 %	1%	No	$2,796.45
OxProp Capital	7 %	1-3%	No	$2,970.18
Value Max	8.4 %	1%	No	$3,070.26

Lender	Annual Interest Rate	Processing Fee	Annual Fee	Monthly Repayment
Capitall	3 %	2-5%	No	$2,695.30
Reachout	5 %	3-6%	No	$2,830.69

* Rates Updated 27 Feb 2026 - Loan Amount Example S$150,000 In 5 Years

Eligibility for Ethoz Temporary Bridging Loan

To qualify for the Ethoz temporary bridging loan, businesses must meet a straightforward set of eligibility conditions tailored for SMEs and growth-stage enterprises in Singapore.

Business Incorporation
Applicants must be Singapore-registered companies with a minimum operational history of 2 years. This ensures the business has established basic operational and financial continuity.
Minimum Annual Turnover
A minimum annual revenue of S$750,000 is required to apply. This threshold demonstrates the company’s financial ability to manage and service the loan over time, reducing default risk and streamlining approvals.
Business Ownership & Structure
Loans are open to private limited companies and sole proprietorships that are locally owned and actively operating. Ethoz may prioritize businesses with clear shareholder structures and audited financials.
Loan Usage & Sector Fit
This loan is best suited for businesses seeking working capital, operational bridging or short-term cash flow support, particularly in industries impacted by economic uncertainty. Applicants should ensure that the loan purpose aligns with legitimate business activities.

PROMOTIONS

APPLICATION PROCESS

Apply via ROSHI
Start your application by visiting the ROSHI loan comparison platform. Select Ethoz’s temporary bridging loan from the available business financing options and proceed through the platform’s secure redirection to submit your application.
Submit Essential Business Documents
Upon redirection to Ethoz’s portal or after contact by a loan advisor, you’ll be asked to provide the following documents for preliminary assessment:
– Latest 6 months of bank statements
– Most recent 2 years of financial statements (audited or management accounts)
– ACRA BizFile and company profile
– NRIC copies of company directors and key shareholders
– Purpose and plan for loan utilization
These documents are critical to evaluating your business’s creditworthiness and aligning the loan terms to your financial profile.
Credit Review & Offer
Once documents are submitted, Ethoz’s underwriting team will conduct a review. Most applicants receive feedback within 2 to 5 business days, depending on the complexity of the financials and completeness of documentation.
If approved, an official loan offer detailing the amount, tenure, interest rate and all applicable fees (including the S$1,500 commitment fee) will be issued for acceptance.
Signing & Disbursement
After signing the offer documents, the loan is typically disbursed within 1 to 3 business days directly into the company’s designated business account. There is no lock-in period and repayments follow a fixed monthly schedule, such as S$1,910.12/month for a S$100,000 loan over 5 years.

HIGHLIGHTS

High Loan Ceiling
Businesses can borrow up to S$1,000,000. This makes it ideal for SMEs that require substantial working capital or funds for scaling.
No Lock-In Period
There is no lock-in. Borrowers have the flexibility to repay early without facing exit penalties.
Transparent Cost Structure
The loan carries a flat 5.5% annual interest rate, a 1.5% processing fee and a fixed S$1,500 commitment fee. No hidden charges or penalty fees are imposed.
Fast Disbursement Timeline
Once approved, funds are typically released within 1 to 3 business days. This helps businesses manage time-sensitive needs quickly.
High Commitment Fee (One-Time)
A fixed commitment fee of S$1,500 applies to all loan approvals. This may be significant for smaller loan amounts.
Shorter Max Tenure Compared to Personal Loans
The maximum tenure is 3 years. This can result in higher monthly instalments for businesses that require longer repayment horizons.

Frequently Asked Questions

What is the interest rate for the Ethoz temporary bridging loan?

The loan features a fixed interest rate of 5.5% per annum, applied evenly over the loan tenure to provide cost predictability.

Are there any upfront or recurring fees?

Yes. There is a 1.5% processing fee and a one-time S$1,500 commitment fee. However, there are no annual fees, no penalty charges and no lock-in period, which helps maintain a stable repayment structure.

How much can I borrow?

You may apply for loan amounts up to S$1,000,000, depending on your company’s financials and credit profile.

Who is eligible to apply?

Any Singapore-registered business with at least 2 years of incorporation and a minimum turnover of S$750,000 per year is eligible. Applicants must also submit supporting financial documentation for evaluation.

How long does loan approval and disbursement take?

After submission of required documents, approval typically takes 2–5 business days, with disbursement within 1–3 business days following contract signing.

Additional Buyer's Stamp Duty (ABSD)

An additional tax imposed on top of Buyer's Stamp Duty for certain property purchases in Singapore. ABSD rates vary based on the buyer's residency status and the number of properties owned. Currently, Singapore Citizens pay 20% ABSD on their second residential property and 30% on subsequent properties. Permanent Residents pay 5% on their first, 30% on their second and 35% on subsequent properties. Foreigners pay 60% on any residential property purchase. ABSD should be a key consideration in property investment planning.

Amortisation

The process of gradually paying off a home loan through regular scheduled payments over time. Each payment covers both principal and interest with the proportion shifting over the loan tenure. In the early years, a larger portion goes towards interest while later payments contribute more to reducing the principal. Understanding amortisation helps borrowers see how their loan balance decreases over time.

Approval-in-Principle (AIP)

Also known as In-Principle Approval (IPA), this is a preliminary indication from a bank of the maximum loan amount you may qualify for based on your income, credit score and other financial commitments. Getting an AIP before property hunting helps you understand your budget and demonstrates to sellers that you qualify as a buyer. An AIP is typically valid for 30 days and is subject to final approval upon property valuation and document verification.

Bank Loan

A home loan provided by a commercial bank as opposed to an HDB Concessionary Loan. Bank loans typically offer lower interest rates but require a larger down payment with at least 5% in cash. They are available for both HDB flats and private properties. Bank loans are regulated by the Monetary Authority of Singapore (MAS) and are subject to LTV limits and TDSR requirements.

Board Rate

An internal reference rate set by each bank, used as a benchmark for pricing certain mortgage packages. Unlike market pegged rates such as SORA, board rates are set at the bank's discretion and can be adjusted without notice. Mortgages pegged to board rates may initially offer attractive rates but carry the risk of future increases. Borrowers should carefully consider the transparency and long-term predictability of board rate packages.

Bridging Loan

A short-term loan that helps home owners finance the purchase of a new property before selling their existing one. Bridging loans cover the gap between the purchase of the new property and the receipt of sale proceeds from the old property. They typically carry higher interest rates and are meant to be repaid within 6 to 12 months. Bridging loans are useful for upgraders who want to secure a new home before completing the sale of their current property.

Buyer's Stamp Duty (BSD)

A tax payable on the purchase of a property in Singapore. BSD is calculated based on the purchase price or market value of the property, whichever is higher. The current rates are: 1% for the first $180,000, 2% for the next $180,000, 3% for the next $640,000, 4% for the next $500,000, 5% for the next $1.5 million and 6% for amounts exceeding $3 million. BSD applies to all property buyers regardless of residency status.

Cash Over Valuation (COV)

The difference between the agreed purchase price and the bank's valuation of the property. COV must be paid in cash and cannot be financed through the home loan or CPF. This is especially relevant in resale property transactions where the negotiated price may exceed the bank's valuation. COV was a significant factor in HDB resale transactions before the removal of the COV disclosure requirement.

Caveat

A legal document lodged with the Singapore Land Authority (SLA) to notify others of an interest in a property. Buyers typically lodge a caveat after exercising the Option to Purchase to protect their interest in the property. The caveat prevents the seller from selling or mortgaging the property to another party. It remains in place until the property transaction is completed or the caveat is withdrawn.

Central Provident Fund (CPF)

Singapore's comprehensive social security system that includes provisions for housing. CPF Ordinary Account (OA) savings can be used to pay for the down payment, stamp duties, legal fees and monthly mortgage instalments for property purchases. There are limits on CPF usage based on the property's remaining lease and the buyer's age. The CPF Housing Withdrawal Limit determines the maximum amount that can be used from CPF for property purchase.

Clawback

A clause in mortgage contracts that requires borrowers to return subsidies, cash rebates or other incentives received from the bank if they refinance, sell or fully redeem the loan within a specified period. Clawback periods typically coincide with lock-in periods. Borrowers should factor in potential clawback amounts when calculating the true cost of refinancing or early loan redemption.

Completion

The final stage of a property transaction where ownership is legally transferred from the seller to the buyer. On completion, the balance purchase price is paid, the mortgage is disbursed and the property title is transferred. For new launches, completion occurs when the Temporary Occupation Permit (TOP) is issued. For resale properties, completion typically occurs 8 to 12 weeks after exercising the Option to Purchase.

Conveyancing

The legal process of transferring property ownership from one party to another. In Singapore, conveyancing is handled by lawyers who handle title searches, prepare legal documents and ensure all regulatory requirements are met. Conveyancing fees are part of the transaction costs and can be paid using CPF funds. The process includes lodging caveats, preparing the transfer documents and registering the change of ownership.

CPF Accrued Interest

The interest that would have been earned had the CPF funds used for property purchase remained in the CPF Ordinary Account. When selling a property, borrowers must refund the principal amount withdrawn plus the accrued interest back to their CPF OA. The accrued interest is calculated at the prevailing CPF OA interest rate, currently 2.5% per annum. This mechanism ensures CPF savings continue to grow for retirement.

CPF Housing Withdrawal Limit

The maximum amount of CPF that can be used for a property purchase, calculated as the Valuation Limit or the lower of purchase price or valuation multiplied by a percentage based on the property's remaining lease. For properties with remaining lease covering the youngest buyer until age 95 up to 100% of the Valuation Limit can be used. Properties with shorter leases have lower withdrawal limits to protect CPF savings for retirement.

Deferred Payment Scheme (DPS)

A payment scheme offered by some developers for new property launches where buyers pay a smaller initial sum, typically 10-20% and defer the balance until completion or a specified date. DPS provides more time for buyers to arrange financing or sell existing properties. Properties purchased under DPS may carry higher prices and the scheme is subject to regulatory approval.

Discharge of Mortgage

The legal process of removing a mortgage from a property title once the loan has been fully repaid. Upon full redemption, the bank issues a discharge document that releases their claim on the property. The discharge must be registered with the Singapore Land Authority (SLA) to clear the encumbrance from the title. This is necessary before the property can be sold or a new mortgage can be registered.

Down Payment

The initial payment made when purchasing a property, representing the portion not covered by the mortgage loan. In Singapore, the minimum down payment depends on the LTV ratio and whether it is a bank loan or HDB loan. For a first property with a bank loan at 75% LTV, the down payment is 25%, of which at least 5% must be in cash and the remaining 20% can be from CPF or cash. Higher down payments are required for subsequent properties or lower LTV scenarios.

Early Repayment Penalty

A fee charged by lenders when borrowers pay off their mortgage before the agreed tenure ends. In Singapore, early repayment penalties typically range from 1.5% to 2% of the outstanding loan amount or the amount prepaid. These penalties usually apply during the lock-in period. Some loan packages allow partial prepayments without penalty up to a certain limit annually. Borrowers should consider potential penalties when evaluating loan packages.

Eligible Financial Assets (EFA)

Assets that can be used to supplement income assessment for mortgage applications under MAS guidelines. EFAs include Singapore dollar and foreign currency deposits, stocks listed on recognised exchanges, bonds, unit trusts and other approved investments. For income assessment purposes, 30% of the EFA value divided by 48 months can be added to monthly income for TDSR calculation. Alternatively, borrowers can pledge the assets to the bank for potentially higher credit limits.

En Bloc Sale

The collective sale of all units in a development, typically a private condominium or apartment building, to a single buyer (usually a developer). En bloc sales require approval from owners holding at least 80% of the share value (for developments 10 years or older) or 90% (for newer developments). Proceeds are distributed among owners based on their share value. En bloc sales can result in windfall gains but require owners to relocate.

Encumbrance

A claim or liability attached to a property that may affect its transferability or value. Common encumbrances include mortgages, caveats and easements. Before purchasing a property, buyers should conduct a title search to identify any encumbrances. Existing mortgages must be discharged before or at completion of the sale. Encumbrances can impact a buyer's ability to obtain financing.

Exercise of Option

The formal acceptance of the Option to Purchase (OTP) by the buyer, signifying commitment to proceed with the property purchase. For private properties, the buyer exercises the option by signing and returning the OTP with the exercise fee (typically 4-9% of the purchase price, bringing the total to 5-10%) to the seller's lawyer within the option period. For HDB flats, the exercise fee is typically 4% of the purchase price. Once exercised, both parties are legally bound to complete the transaction.

Fixed Rate Mortgage

A home loan where the interest rate remains constant for a specified period, typically 2 to 5 years. Fixed rates provide certainty in monthly repayments and protection against interest rate increases. However, fixed rates are usually higher than initial floating rates and may carry stricter early repayment penalties. After the fixed rate period ends, the loan typically converts to a floating rate package.

Floating Rate Mortgage

A home loan where the interest rate fluctuates based on a reference rate such as SORA or the bank's internal board rate. Floating rate mortgages typically offer lower initial rates than fixed rate packages but carry the risk of rate increases. Monthly repayments may vary as rates change. Borrowers who expect interest rates to remain stable or decrease may prefer floating rate packages.

Freehold

A form of property ownership where the owner holds the land and property indefinitely, with no lease expiry. Freehold properties typically command higher prices than leasehold properties due to perpetual ownership. In Singapore, freehold private properties are relatively rare as most land is state owned. Freehold status affects property valuation, financing options and long term investment potential.

HDB Concessionary Loan

A housing loan provided by the Housing and Development Board (HDB) for the purchase of HDB flats. HDB loans offer up to 80% LTV with the interest rate pegged at 0.1% above the prevailing CPF Ordinary Account interest rate (currently 2.6% per annum). Only Singapore Citizens forming an eligible family nucleus can apply for HDB loans. HDB loans allow the entire down payment to be paid using CPF, with no cash component required.

HDB Flat

Public housing built and sold by the Housing and Development Board (HDB). HDB flats come in various types including Build-to-Order (BTO), Sale of Balance Flats (SBF) and resale flats. They are sold on 99-year leases and are subject to eligibility conditions, ethnic integration policy and minimum occupation periods. Over 80% of Singapore's resident population lives in HDB flats, making them the most common form of housing in the country.

Interest Only Loan

A loan structure where the borrower pays only interest without reducing the principal for a specified period. This results in lower initial monthly payments but the principal remains unchanged. Interest only periods are rare in Singapore residential mortgages and may be available for investment properties or bridge financing. Borrowers should ensure they have a plan to repay the principal when the interest only period ends.

Joint Tenancy

A form of co-ownership where two or more persons own a property with equal, undivided shares. The key feature of joint tenancy is the right of survivorship, when one owner dies, their share automatically passes to the surviving owner(s) without going through probate. Joint tenancy is common among married couples. It differs from tenancy in common, where owners can hold unequal shares and bequeath their share through a will.

Lease Decay

The gradual decline in a leasehold property's value as its remaining lease shortens. In Singapore, most properties are on 99-year leases and the effects of lease decay become more pronounced as the remaining lease falls below 60 years. Properties with shorter leases may have reduced CPF usage limits, lower LTV ratios for bank loans and may be less attractive to buyers. The government has stated that leases will not be automatically extended.

Leasehold

A form of property ownership where the owner holds rights to the property for a specified period, after which ownership reverts to the state. In Singapore, most residential properties including all HDB flats are on 99-year leases. Some private properties may have 999-year leases. The remaining lease affects property valuation, financing options and CPF usage limits. As the lease runs down, the property's value may decrease.

Legal Fees

Professional fees charged by lawyers for handling the legal aspects of a property transaction. Legal fees cover services such as title searches, document preparation and registration of transfers and mortgages. In Singapore, legal fees can typically be paid using CPF funds. Buyers and sellers each engage their own lawyers, though the same firm may act for both the buyer and the mortgagee bank.

Letter of Offer (LO)

The formal document from a bank to a borrower setting out the terms and conditions of an approved home loan. The Letter of Offer includes the loan amount, interest rate, loan tenure, monthly repayment, lock-in period and other key terms. Borrowers must sign and return the Letter of Offer within a specified period (typically 7 to 14 days) to accept the loan. The terms are only binding once the LO is signed.

Loan Tenure

The period over which a home loan must be repaid. In Singapore, the maximum loan tenure is typically 30 years for HDB flats and 35 years for private properties, subject to the borrower's age. The loan tenure plus the borrower's age generally cannot exceed 65 years (for 75% LTV) or 75 years (for lower LTV). Longer tenures result in lower monthly payments but higher total interest paid over the life of the loan.

Loan-to-Value (LTV) Ratio

The ratio of the loan amount to the property's value or purchase price, whichever is lower. In Singapore, the maximum LTV for a first residential property is 75% for bank loans (if the loan tenure exceeds 30 years or the loan period plus borrower's age exceeds 65, the LTV is capped at 55%). HDB loans offer up to 80% LTV. Lower LTV limits apply for second and subsequent properties. The LTV ratio determines the minimum down payment required.

Lock-in Period

The period during which a borrower is contractually committed to a mortgage and cannot refinance or fully redeem the loan without incurring a penalty. Lock-in periods typically range from 1 to 5 years. During this period, refinancing to another bank or selling the property triggers an early repayment penalty, usually 1.5% to 2% of the outstanding loan. Some packages may allow partial prepayments without penalty.

Minimum Occupation Period (MOP)

The mandatory period during which HDB flat owners must physically occupy their flat before they can sell it on the open market or buy a private property. For most HDB flats, the MOP is 5 years from the date of key collection. Owners must continue to live in the flat during the MOP and cannot rent out the entire unit. The MOP ensures that subsidised public housing benefits genuine owner occupiers.

Mortgage

A loan secured against a property, where the property serves as collateral. If the borrower fails to repay the loan, the lender has the legal right to sell the property to recover the debt. In Singapore, mortgages must be registered with the Singapore Land Authority (SLA). The term is often used interchangeably with home loan, though technically the mortgage refers specifically to the security arrangement.

Mortgage Insurance

Insurance that protects the borrower's family or the lender in case of death, disability or other events that prevent loan repayment. In Singapore, mortgage insurance products include Mortgage Reducing Term Assurance (MRTA) and the Home Protection Scheme (HPS). HPS is compulsory for HDB flat owners using CPF for mortgage payments. Mortgage insurance ensures the loan can be repaid without burdening surviving family members.

Mortgagee

The lender who provides the mortgage loan and holds the security interest in the property. In Singapore, mortgagees are typically banks or HDB. The mortgagee has the right to sell the property through foreclosure if the borrower defaults on the loan. The mortgagee's interest is registered on the property title until the loan is fully repaid and discharged.

Mortgagor

The borrower who takes out a mortgage loan and pledges the property as security. The mortgagor retains ownership and the right to occupy the property while making loan repayments. However, the mortgagor's ownership is subject to the mortgagee's security interest. The mortgagor is responsible for maintaining the property and fulfilling all obligations under the mortgage contract.

Net Worth Assessment

An alternative method for loan assessment that considers a borrower's total assets rather than just income. This approach is useful for individuals with substantial assets but limited regular income, such as retirees or business owners. The assessment typically involves pledging assets or demonstrating sufficient net worth to cover the loan. Terms and conditions vary between lenders.

Normal Progressive Payment Scheme

The standard payment schedule for purchasing under construction properties (new launches) in Singapore. Payments are made progressively as construction milestones are reached, starting from 5% booking fee, followed by stamp duties and legal fees, then progressive payments at foundation, reinforced concrete, brick wall, ceiling, electrical and TOP/CSC stages. Interest is charged only on the disbursed amount during construction.

Option Fee

The initial payment made by a buyer to secure an Option to Purchase (OTP) from a seller. For private properties, the option fee is typically 1% of the purchase price. For HDB resale flats, the option fee ranges from $1 to $1,000. The option fee is non refundable if the buyer decides not to proceed, but it forms part of the purchase price if the option is exercised. It compensates the seller for taking the property off the market during the option period.

Option Period

The timeframe during which a buyer can decide whether to exercise the Option to Purchase. For private properties, the option period is typically 14 days. For HDB resale flats, it is 21 calendar days. During this period, the buyer should conduct due diligence, secure financing approval and arrange for legal representation. If the option is not exercised within this period, it lapses and the option fee is forfeited.

Option to Purchase (OTP)

A legal document that gives the buyer the exclusive right to purchase a property within a specified period at an agreed price. The seller issues the OTP upon receipt of the option fee and is bound not to sell to anyone else during the option period. The buyer can choose to exercise the option by paying the exercise fee or let it lapse and forfeit the option fee. For new launches, the OTP is issued after the 5% booking fee is paid.

Outstanding Principal

The remaining amount of the original loan that has not yet been repaid. As you make monthly mortgage payments, the outstanding principal decreases. Interest is calculated based on the outstanding principal, so the interest portion of each payment reduces over time while the principal portion increases. Knowing your outstanding principal helps in planning refinancing or early repayment strategies.

Partial Prepayment

Making an additional payment towards your mortgage to reduce the outstanding principal, without fully redeeming the loan. Some loan packages allow partial prepayments without penalty, often up to a certain percentage (e.g., 50%) of the outstanding loan per year. Partial prepayments can reduce the total interest payable and shorten the effective loan tenure. Borrowers should check their loan terms for any restrictions or penalties.

Private Property

Non HDB residential property including condominiums, apartments, landed houses and executive condominiums that have completed their minimum occupation period. Private properties can be freehold or leasehold and are not subject to the same eligibility restrictions as HDB flats. They can be purchased by Singapore Citizens, Permanent Residents (with restrictions on landed property) and foreigners (with additional stamp duties and restrictions on landed property).

Property Tax

An annual tax levied by the Inland Revenue Authority of Singapore (IRAS) on property owners based on the Annual Value (AV) of the property. Owner occupied residential properties enjoy concessionary rates ranging from 0% to 32% depending on the AV. Non owner occupied residential properties are taxed at 12% to 36%. Property tax must be paid by 31 January each year or in monthly instalments via GIRO.

Property Valuation

An assessment of a property's market value conducted by a licensed valuer. Banks require valuations before approving mortgage loans to ensure the property value supports the loan amount. The valuation determines the maximum loan quantum and affects CPF withdrawal limits. Valuation reports are typically valid for 3 to 6 months. Buyers may need to pay the valuation fee, though some banks absorb this cost.

Redemption

The full repayment of a mortgage loan, which releases the lender's claim on the property. Redemption can occur at the end of the loan tenure, upon sale of the property or through early repayment. Early redemption during the lock-in period typically incurs a penalty. Upon redemption, the bank issues a discharge of mortgage document and the encumbrance is removed from the property title.

Refinancing

Replacing an existing mortgage with a new loan, typically from a different lender, to obtain better terms such as a lower interest rate. Refinancing usually makes sense when the potential savings outweigh the costs, including legal fees, valuation fees and any early repayment penalties. Borrowers commonly refinance after their lock-in period ends. Refinancing is also an opportunity to adjust the loan tenure or switch between fixed and floating rates.

Repricing

Switching to a different loan package with the same bank, as opposed to refinancing with a different bank. Repricing typically involves lower costs as there are no new legal or valuation fees. Banks may offer repricing options when borrowers' lock-in periods end. Repricing allows borrowers to take advantage of more competitive rates without the hassle of switching lenders. Some banks may charge a repricing fee.

Resale Levy

A charge payable to HDB when a household that has previously received a housing subsidy buys another subsidised flat. The levy recovers part of the earlier subsidy. The amount depends on the flat type previously owned and ranges from $15,000 to $55,000. First-time buyers are not subject to the resale levy. The levy can be paid in cash or from CPF proceeds from the sale of the previous flat.

Sale and Purchase Agreement (S&P)

The legally binding contract between buyer and seller that sets out the terms and conditions of a property sale. For private properties, the S&P is signed upon exercise of the Option to Purchase. It includes details such as the purchase price, completion date, conditions and representations and warranties. The S&P is typically prepared by the seller's lawyer based on standard Law Society conditions.

Singapore Overnight Rate Average (SORA)

The benchmark interest rate for Singapore dollar transactions, calculated by MAS based on actual interbank overnight borrowing transactions. SORA replaced SIBOR and SOR as the main reference rate for mortgages in Singapore. SORA pegged loans use compounded SORA (typically 1-month or 3-month) plus a spread determined by the bank. SORA is transparent and based on actual transactions, reducing manipulation risk.

Spread

The margin or markup added by the bank to a reference rate (such as SORA) to determine the mortgage interest rate. For example, a loan priced at 1-month compounded SORA plus 0.80% has a spread of 0.80%. The spread represents the bank's profit margin and risk premium. When comparing SORA pegged loans, both the reference rate and the spread should be considered.

Strata Title

A system of property ownership for multi unit developments such as condominiums and apartments where individual unit owners own their specific units while sharing ownership of common property. Strata titled developments are governed by the Building Maintenance and Strata Management Act. Unit owners pay monthly maintenance fees and are members of the Management Corporation Strata Title (MCST) that manages the common property.

Subsale

The sale of a property before the original buyer has obtained legal title, typically occurring with under construction properties. In a subsale, the original buyer assigns the benefit of the Sale and Purchase Agreement to the new buyer. Subsales may attract Seller's Stamp Duty if sold within the holding period. Additional legal complexities apply and lender approval may be required for the assignment.

Temporary Occupation Permit (TOP)

A permit issued by the Building and Construction Authority (BCA) allowing a newly completed building to be occupied before the Certificate of Statutory Completion (CSC) is issued. TOP signifies that the building is safe for occupation and essential services are available. For new launch properties, TOP triggers the final progressive payment and the commencement of the loan's principal and interest payments.

Tenancy in Common

A form of co-ownership where two or more persons own a property in specified shares that may be unequal. Unlike joint tenancy, there is no right of survivorship and each owner can bequeath their share through a will. Tenancy in common is often used when co-owners are not married or want control over the distribution of their share. The ownership shares must be clearly specified in the title deed.

Tenure (Lease)

The length of time for which property rights are held under a lease. In Singapore, most residential properties are on 99 year leases, including all HDB flats. Some older private properties may have 999 year leases or be freehold. The remaining lease tenure affects property valuation, CPF usage limits and bank loan eligibility. Properties with less than 30 years remaining lease may face significant financing restrictions.

Title Deed

The legal document evidencing ownership of a property. In Singapore, the title deed shows the registered owner, property description, tenure and any encumbrances such as mortgages or caveats. Title searches can be conducted through the Singapore Land Authority (SLA) INLIS system. Ensuring a clean title is an essential part of property due diligence before purchase.

Title Insurance

Insurance that protects property owners and lenders against losses arising from defects in property title. While not common in Singapore due to the reliable Torrens title registration system, title insurance may be relevant for certain transactions involving older properties or complex ownership histories. It provides protection against issues like fraud, forgery or undisclosed claims.

Total Debt Servicing Ratio (TDSR)

A framework introduced by MAS that limits a borrower's total monthly debt obligations to no more than 55% of gross monthly income. TDSR applies to all property loans from financial institutions and considers all debt commitments including credit cards, car loans and other mortgages. The TDSR framework ensures borrowers do not overextend themselves financially and promotes responsible lending practices.

Valuation Limit

The lower of the purchase price or the property's valuation, used to determine the maximum CPF withdrawal and loan amount. If you purchase a property for $1 million but it is valued at $950,000, the valuation limit is $950,000. The $50,000 difference (Cash Over Valuation) must be paid in cash. CPF usage and LTV calculations are based on the valuation limit, not the purchase price.

Disclaimer

This glossary is provided for informational purposes only and does not constitute financial, legal or professional advice. While every effort has been made to ensure accuracy, regulations, rates and requirements may change. The terms and definitions provided are general explanations and may vary between financial institutions.

For the most current information on home loan regulations and requirements please refer to the Monetary Authority of Singapore (MAS), Housing and Development Board (HDB) and Central Provident Fund (CPF) Board official websites. Always consult qualified professionals before making property purchase or financing decisions.

Loan-to-Value limits, stamp duty rates, TDSR thresholds and other regulatory requirements mentioned are accurate as of the publication date but are subject to change by the relevant authorities.

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Popular Bridging Loans

$288.67 Monthly repayment shown uses an indicative rate of 8% per year. Depending on your lender, actual rates may range from 6-15% per year.

Current Ethoz Bridging Loan Loan Rate

Product Review

Your monthly payment

Ethoz Fees

Overview of Interest Rates

Eligibility for Ethoz Temporary Bridging Loan

PROMOTIONS

APPLICATION PROCESS

HIGHLIGHTS

Frequently Asked Questions

What is the interest rate for the Ethoz temporary bridging loan?

Are there any upfront or recurring fees?

How much can I borrow?

Who is eligible to apply?

How long does loan approval and disbursement take?

Ethoz Temporary Bridging Loan
(Product review)