Subject to Finance: What Does It Actually Mean?

A finance condition can provide important protection when purchasing property, but it should not be treated as a guarantee that you can simply walk away if finance becomes difficult.

The wording of the finance condition matters.

Your contract may specify:

• The amount of finance required
• The lender or type of lender
• The date finance approval must be obtained
• What you must do if finance is not approved by the due date
• What evidence or notice may need to be provided

It is important to keep all parties updated and to let your conveyancer know as soon as possible if there is any concern about meeting the finance deadline.

Tip: Do not leave finance until the due date. If approval is delayed, your conveyancer may need time to seek an extension or otherwise protect your position.

Have questions or need some advice? Contact us, we are always happy to assist!