GAP Finance in South Africa
Sometimes the bond is approved but the cash needed at transfer is not available. GAP finance covers qualifying shortfalls such as deposits, transfer duty and transaction costs so a sound property deal does not fall through.
What GAP Finance Covers
GAP finance bridges the difference between the funds a bank advances and the total cash you need to complete the transaction. It is short-term, purpose-specific funding assessed on the strength of the underlying deal and your affordability.
- Deposit shortfalls on an approved purchase
- Transfer duty and conveyancing attorney fees
- Bond registration and initiation costs
- Other qualifying property transaction costs
How It Is Assessed
Providers look at the signed offer to purchase, the approved bond, the size of the gap and your ability to service the additional facility. Gateway helps you package the request correctly the first time.
- Signed offer to purchase and bond grant required
- Clear repayment plan and affordability assessment
- Short repayment terms and higher rates than a bond
- Best used where the shortfall is temporary and defined
Use GAP Finance Carefully
Because GAP finance is short-term, the cost of credit is higher than a home loan. It is most appropriate when the shortfall is modest, well defined and repayable within a short period.
Get Your Free Home Loan Pre-Approval
One online application, compared across leading South African banks, with an experienced mortgage specialist guiding you from pre-approval to registration.
Start my free pre-approvalGAP Finance FAQs
What is GAP finance?
GAP finance is short-term funding that covers the shortfall between the bond a bank approves and the total cash needed to complete a property transaction, such as the deposit and transfer costs.
Who qualifies for GAP finance?
Typically buyers with an approved bond, a signed offer to purchase, a clearly defined shortfall and the affordability to service the extra repayment.
Is GAP finance more expensive than a home loan?
Yes. It is short-term, unsecured or lightly secured funding, so rates and fees are higher than bond finance. It should be repaid as quickly as possible.