Never! Risk your investment capital for too little.

Why You Should Never Waive the Financing Condition Based on Verbal Assurances

In today’s competitive housing market, it’s common to feel pressured to make your offer as attractive as possible. One strategy some buyers use is to remove conditions, such as the financing condition, to strengthen their offer. But this can be incredibly risky, especially if you’re relying solely on a verbal assurance from a realtor that “their mortgage broker will get you approved.”

Here’s why you should never waive the financing condition without written mortgage approval, and what you should know to protect yourself from a potentially devastating financial situation.

What Is the Financing Condition?

The financing condition is a clause in your offer that allows you time (usually 5 business days) to secure a mortgage approval. If you’re unable to get approved for the loan, you can walk away from the deal without penalty.

Removing this condition means you are legally obligated to close the deal—regardless of whether you secure the financing or not.

Verbal Promises Aren’t Binding

Realtors sometimes assure buyers that their in-house or recommended mortgage broker can “make it happen.” While this may be said with good intentions, a promise isn’t a guarantee. Mortgage approvals are based on:

• Your credit score
• Your income and employment history
• Your debt-to-income ratio
• The property’s appraisal value
• Other factors like the lender’s current lending criteria

Even if you were “pre-approved,” the actual approval only happens after a lender reviews the complete deal, including the property.

What Could Go Wrong?

Here are some real-world scenarios:

• Appraisal Issues: The home appraises for less than the purchase price. Now you need to cover the shortfall.
• Changed Financial Status: You lose your job or take on new debt between pre-approval and final approval.
• Tight Lending Rules: The lender declines the mortgage based on their internal policies, even if another broker said it could work.

If your financing falls through after you’ve waived the condition, you could:

• Lose your deposit (often tens of thousands of dollars)
• Get sued for breach of contract
• Be forced to buy a home you can’t afford

The Safer Path: Conditional Offers with Professional Advice

Always work with a licensed mortgage professional—not just the broker suggested by your realtor unless you’ve vetted them yourself.

Make sure you:

1. Get written mortgage approval before waiving any condition
2. Understand all the terms and limitations of your approval
3. Know what happens if the lender or insurer (like CMHC) declines the mortgage

Protect Yourself—It’s Your Future

Buying a home is one of the biggest financial decisions of your life. Relying on a handshake promise or someone else’s confidence can lead to disaster.

• Insist on a financing condition
• Don’t skip steps to “win” the house
• Speak directly with your mortgage advisor before making major decisions

Contact Today!

If you’re house hunting and want to make sure you’re financially protected, reach out to me. I’ll help you navigate the mortgage process and give you the confidence to make smart, informed decisions—without unnecessary risk.