SUBJECT TO FINANCING — A MUST!
- johnathanmcquoid
- Jan 17
- 2 min read
For buyers entering the market — especially first-timers — nothing beats the excitement of getting an accepted offer.
But right after that excitement comes the stress of actually securing financing.
And this is where one clause can save you from massive financial disaster 👇
⚠️ Always include a “Subject to Financing” condition
Before writing an offer, your REALTOR® will ask if you’ve been pre-qualified by a mortgage broker or bank — but pre-qualification is not a guarantee of approval.
A lender still needs to approve:
✔️ your income & employment
✔️ your down payment source
✔️ the property itself
If any one of these fails, the lender can deny the mortgage.
And without financing… you cannot complete the purchase.
🏠 Why does the property matter?
Even if you qualify personally, the lender must also approve the home.
Examples of property issues that can cause denial:
• weak strata contingency fund
• upcoming major repairs (leaking roof, failing parkade, etc.)
• structural issues
• previous grow-op history
• underfunded reserve
• insurance concerns
If the lender or insurer doesn’t like the property, they simply won’t lend on it.
Your subject-to-financing clause gives you the legal right to walk away without losing your deposit.
💥 What happens if you make a subject-free offer?
This is where buyers get into serious trouble.
If you make a subject-free offer and it’s accepted:
❌ your deposit becomes non-refundable
❌ you must complete the purchase
❌ if you can’t get financing, you still owe the money
❌ the seller can sue you for losses
In a worst-case scenario, you could:
• lose your entire deposit
• face legal action
• be forced to cover the seller’s financial damages
All because you didn’t include one simple condition.
⏳ How long should the financing condition be?
👉 3–5 business days is standard and safe.
This gives your broker and lender enough time to:
✔️ verify income
✔️ verify down payment
✔️ run the application
✔️ approve the property
✔️ complete lender + insurer review
💬 Final Thought
No matter what anyone tells you —
Never write an offer without a subject-to-financing clause.
It protects your deposit, protects you legally, and protects you financially.
If you want help getting fully prepared BEFORE you write an offer, message The Frontline Mortgage Group anytime. We’ll make sure you’re protected from start to finish. 💬