{"id":5429,"date":"2024-05-23T10:15:54","date_gmt":"2024-05-23T00:15:54","guid":{"rendered":"https:\/\/financialplus.com.au\/?p=5429"},"modified":"2024-05-23T10:15:54","modified_gmt":"2024-05-23T00:15:54","slug":"what-you-should-know-before-buying-subject-to-finance","status":"publish","type":"post","link":"https:\/\/financialplus.com.au\/what-you-should-know-before-buying-subject-to-finance\/","title":{"rendered":"What you should know before buying \u2018subject to finance\u2019"},"content":{"rendered":"
Picture this. You\u2019ve seen a home you\u2019re crazy about, and you don\u2019t want to miss out to another buyer. So, you sign on the dotted line and hand over your deposit.<\/p>\n Things are getting real now. But what if they\u2019re not? What if you struggle to land a home loan?<\/p>\n It\u2019s a scenario every home buyer dreads.<\/p>\n If you have to back out of the contract because you can\u2019t get loan approval, you could lose your deposit.<\/p>\n One possible solution, however, is to make your offer \u2018subject to finance\u2019.<\/p>\n In practical terms, making an offer subject to finance means an extra clause is added to the sale contract.<\/p>\n Essentially, it can allow the buyer to walk away from a sale with their deposit intact if mortgage finance can\u2019t be arranged within a set timeframe.<\/p>\n Understandably, the seller won\u2019t wait around forever. So, the time allowed to secure loan approval can be tight, often a matter of days.<\/p>\n However, a subject to finance clause could help you avoid a last minute race for finance \u2013 a pressure-cooker situation that could see you accept a loan or lender that\u2019s not right for your needs.<\/p>\n There is a catch to making an offer subject to finance: the seller doesn\u2019t have to agree to it.<\/p>\nNot sure if you\u2019ll get the thumbs up for a home loan? But you really, really like that house that just popped up? Making an offer \u2018subject to finance\u2019 could be the right move. Here\u2019s how it works.<\/strong><\/p>\n
Why make an offer subject to finance?<\/h3>\n
The downside of buying subject to finance<\/h3>\n