When you’re making an offer on a home, subject to financing is one of the most important conditions you can include—especially in Edmonton’s hot housing market.

Watch my video or read on for more details!

What Is Subject to Financing?

Subject to financing is a condition in your purchase contract that protects you if your mortgage approval doesn’t come through. It gives you the ability to back out of the deal without penalty if your lender doesn’t approve the loan or if the terms change.

Why Subject to Financing Matters

Many buyers assume that once they’re pre-approved, they’re in the clear. But lenders don’t just approve you, they also evaluate the property. If you offer significantly above asking in a multiple-offer situation, your lender might determine that the home’s value doesn’t match the price you’ve agreed to pay.

Without a subject to financing clause, you could be on the hook for the difference between what the lender will finance and what you’ve committed to pay.

Cash Buyers Still Benefit from Financing Conditions

Even if you have a large down payment or substantial savings, including subject to financing is a smart move. It buys you time to finalize the mortgage paperwork and reassess the deal if anything changes.

Avoid Risky Offers in a Competitive Market

Edmonton’s market is competitive, and it’s tempting to remove conditions to make your offer stand out. But waiving subject to financing can be risky, especially if you’re stretching your budget or dealing with a tight lender timeline.

Whether you are preparing to buy your first home or thinking about making a move, if you’re looking to get pre-approved for a mortgage to buy a condo or other property in Edmonton, fill out my online application. I’m here to help you every step of the way.

About Jason Scott, Edmonton Mortgage Broker

Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’ll be your trusted partner who will help you get the right mortgage for your family home or Investment property. I’m Jason Scott, and I’ll be your Mortgage Broker in Edmonton.