What is a Bridging Loan? A bridging loan is typically a short-term loan that one can take out whenever they need money to put down on a new home. More times than note, these cash loans need to be paid back within 6 months after they are issued. They are referred to as “Secured” loans which means that you will need to give up something as collateral - usually a piece of property or your home. Financiers do this to ensure that the person being lent the money will pay it back. What are Bridging Loans Used For? One of the most uses for a bridging loan is to provide a homeowner who is selling their current home with the funds needed to make a down payment on a new home. Being stuck in limbo like this isn’t fun so this loan is designed to help them move into their new home until their old one sells. These loans essentially “bridge” the gap between the individual collecting their money for their old home to pay for their new home. The majority of people like bridging loans because the rates are lower compared to unsecured personal loan. Remember that acquiring a regular loan can be quite difficult when going through a bank. Not to mention, it can take a long time to get approved. The main benefit associated with bridging loans is that you will usually receive an answer in less than a day if you apply from a licensed moneylender in Singapore.