Real Estate Term
Subject to Financing
A condition in an offer that makes the sale contingent on the buyer obtaining financing.
What is Subject to Financing?
Subject to financing is a common condition in an offer that makes the purchase dependent on the buyer securing an approved mortgage by a set date. It protects the buyer, who can withdraw — usually with their deposit returned — if financing falls through. Once the mortgage is confirmed, the buyer removes the condition and the deal becomes firm.
Frequently asked questions
Related terms
Conditional OfferAn offer to purchase that includes specific conditions that must be met before the sale is finalized.Mortgage Pre-ApprovalA lender's commitment to provide financing up to a specific amount, subject to conditions.MortgageA loan used to purchase real estate, with the property serving as collateral.DepositA sum of money paid as part of an offer to purchase, held in trust until closing.
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