IN THE KNOW: Fitzrovia Expands Into Vancouver With First West-Coast Office

Financing Condition

Learn what a financing condition is in Canadian real estate, how it protects buyers, and why it’s important when making offers on property.

Financing Condition

May 22, 2025


What is a Financing Condition?

A financing condition is a clause in a real estate purchase agreement that makes the offer contingent on the buyer securing mortgage approval within a set timeframe.

Why Financing Conditions Matter in Real Estate

In Canadian real estate, the financing condition protects buyers by giving them time—usually 3 to 5 business days—to obtain a mortgage commitment without risking their deposit.

If financing is not secured:
  • The buyer can back out with no penalty
  • The deposit is refunded in full
Removing this condition (as in a firm offer) increases risk if mortgage approval later fails. In hot markets, buyers may feel pressured to waive it, but doing so requires full financial confidence and professional advice.
Understanding the financing condition ensures buyers make informed decisions about risk tolerance, offer strength, and financial readiness.

Example of Financing Condition

A buyer includes a five-day financing condition in their offer, allowing time to receive final approval before committing to the purchase.

Key Takeaways

  • Gives buyers time to secure financing.
  • Allows withdrawal without penalty.
  • Standard in most residential deals.
  • Waiving increases risk.
  • Part of offer negotiation strategy.

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

More For You

Ontario's HST Rebate Is Moving (Half) The Market: BILD

Ontario's HST Rebate Is Moving (Half) The Market: BILD
Shutterstock

The HST rebate program is doing something in the low-rise market. In the high-rise sector, the jury's still out.

New data released today by the Building Industry and Land Development Association (BILD) shows April 2026 was a turning point for single-family home sales in the Greater Toronto Area — the first month in three years that the low-rise sector surpassed its 10-year average. The milestone comes less than a month after Ontario's enhanced HST rebate program took effect on April 1.

Keep ReadingShow less

GWL Realty Lists 23-Acre Westbank Hub North Shopping Centre In West Kelowna

GWL Realty Lists 23-Acre Westbank Hub North Shopping Centre In West Kelowna

Westbank Hub North is anchored by Walmart and is one of the Okanagan's most dominant open-air retail centres.

Westbank Hub North, one of the largest open-air shopping centres in West Kelowna, was officially listed for sale last week, according to a sales brochure.

The shopping centre is located at 2115-2170 Louie Drive, on the western side of Highway 97 at the intersection with Elk Road. The property consists of four legal parcels — 2121, 2130, 2151, and 2170 Louie Drive — and is home to a Walmart, Dollarama, Anytime Fitness, London Drugs, and several quick-service restaurants.

Keep ReadingShow less

Stronger Protection Has Arrived For New Home Buyers In Ontario. Here’s How

Stronger Protection Has Arrived For New Home Buyers In Ontario. Here’s How

Sundry Photography/Shutterstock

A stronger and safer new home marketplace has wide-reaching benefits, from enhancing consumer trust in the housing market through to positive ripple effects on the economy at large.

But this type of marketplace isn't something that happens by accident — it’s intentionally built on smart policy, informed consumers, and the collective effort of real estate professionals.

Keep ReadingShow less

Carlyle Looks To Sell South Phase Of Toronto Junction Project

Carlyle Looks To Sell South Phase Of Toronto Junction Project

The two towers planned for 6 Lloyd Avenue in Toronto. (TD Cornerstone Commercial Realty)

Toronto-based developer Carlyle Communities has put the south phase of its two-tower project in the Junction neighbourhood on the market, according to a sales brochure obtained by STOREYS.

The project is set for 6 Lloyd Avenue, a 2.6-acre site at the intersection of Lloyd Avenue and Mulock Avenue, just south of St. Clair Avenue West and the future St-Clair-Old Weston Station planned as part of the UP Express Line.

Keep ReadingShow less

Quaint Detached In Wychwood Is Like A Cottage In The City

Quaint Detached In Wychwood Is Like A Cottage In The City

319 Wychwood Avenue has a loft above a vaulted living room, organic berry beds in the backyard, perennial gardens out front, and a private driveway that fits three cars.

It's three minutes on foot from Cedarvale Ravine, and it's asking $989,000. At this point in the Toronto market, that combination shouldn't exist.

Keep ReadingShow less

Rennie President Greg Zayadi On 'The Agency' Partnership

Rennie President Greg Zayadi On 'The Agency' Partnership

theagencyrennie.com

This week, Rennie announced a new partnership with global boutique real estate brokerage The Agency, the latest effort by the Vancouver-based real estate services firm to expand its offerings and reach.

The partnership extends from pre-development consultation through final close. It’s similar to what Rennie offers, but on a much larger geographical scale thanks to The Agency’s 3,500 agents and 150 offices across 14 countries. Where The Agency has new projects, Rennie will get involved in those projects as well.

Keep ReadingShow less

Chartwell Pays $382.M For 30% Stake In Fengate's Seasons Senior Housing Portfolio

Chartwell Pays $382.M For 30% Stake In Fengate's Seasons Senior Housing Portfolio

Seasons St. Catharines in Ontario. (Seasons Retirement Communities)

On May 7, Chartwell Retirement Residences (TSX: CSH.UN) entered into a definitive agreement to acquire a minority ownership stake in Seasons Retirement Communities through a new joint venture with Fengate Asset Management.

Chartwell will own a 30% stake in the joint venture, while Fengate — the existing owner acting on behalf of the LiUNA Pension Fund of Central and Eastern Canada — will own the remaining 70%.

Keep ReadingShow less

Wesgroup Revises Civic District Master Plan Project In Surrey To 1,900 Units

Wesgroup Revises Civic District Master Plan Project In Surrey To 1,900 Units

An updated rendering of Civic District. (Arcadis, Wesgroup Properties)

Prominent Vancouver-based developer Wesgroup Properties has submitted a new rezoning application for Civic District, their multi-phased master-planned communication in Surrey.

Civic District is set for 10355 King George Boulevard, a 5.1-acre site bounded by King George Boulevard on the east, Central Avenue on the south, City Parkway on the west, and 104 Avenue on the north.

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
All rights reserved SiteMedia © 2026.