When you find your dream home in Victoria, the excitement can make it tempting to sign on the dotted line immediately. However, unless you have a suitcase full of cash, the Subject to Finance clause is the most important condition you will ever encounter in a Contract of Sale.
At Shepparton Conveyancing Services, we make conveyancing easy, efficient, affordable, and reliable. Part of that mission is ensuring you don't commit to a purchase you technically cannot afford.
In Victoria, this clause acts as a legal "out." It states that your obligation to buy the property is dependent on you receiving formal approval for a home loan by a specific date.
If your bank knocks back your application and you have this clause in place, you can generally end the contract and have your deposit returned. Without it, you are committed to an "unconditional" contract. If your finance falls through on an unconditional deal, you risk losing your entire deposit and being sued for damages.
Our 30 years of experience means we’ve seen every hurdle a bank can throw at a buyer. When we handle your file, we ensure three specific things are managed perfectly:
- The Approval Date: We ensure the timeframe is realistic (usually 10 to 14 days) to give your lender enough time to process the paperwork.
- The Lender Details: We help you specify your preferred lender or any financial institution to provide maximum flexibility.
- The Loan Amount: We ensure the contract reflects the amount you actually need to borrow to complete the settlement.
Banks don't always move as fast as you’d like. If your finance approval is delayed, our team steps in to negotiate an extension with the vendor’s legal representative. Because we offer a personable service, we talk to you—and your mortgage broker—regularly to ensure no deadlines are missed.
Our Pro Tip: Pre-approval is not the same as Final Approval. Never assume your finance is sorted until the bank provides a formal Letter of Offer. Until then, keep that finance clause active!
The Subject to Finance clause is more than just a line in a contract; it is your primary protection in the high-stakes Victorian property market. At Shepparton Conveyancing Services, we combine our 30 years of industry experience with a personable service to ensure your interests are always attended to.
We pride ourselves on being efficient, affordable, and reliable, taking the guesswork out of complex legal terms so you can focus on the excitement of your new move. Whether you are buying your first home or your seventh, our goal remains the same: Conveyancing Made Easy.
Ready to make your next move? Don’t leave your deposit to chance. Contact our team today to have your contract reviewed before you sign.