What is the Government Bridging Loan and how does it work?
The Government Bridging Loan is a short-term loan offered by the Government at a concessionary interest rate to help Singaporeans and permanent residents affected by the CPF cut. It is meant to help CPF members meet the shortfall in their monthly mortgage repayments arising from the CPF cut. Example: Cut in CPF contributions in Ordinary Account at the time of application for the Government Bridging Loan = $360, based on wages of $6,000 per month. Monthly CPF repayment to financier = $1,800 (before CPF cut) Contributions in Ordinary Account = $1,440 (after CPF cut) _______ Monthly shortfall $360 _______ The Government will provide the $360 (or shortfall in housing loan instalment, whichever is lesser) to help the CPF member bridge the shortfall in his monthly mortgage instalment.
