What happens if my finance isn't approved in time when buying a property?

Finance approval is your lender's formal agreement to fund the purchase. Where your contract is subject to finance, you must take all reasonable steps to obtain approval by the finance date — applying promptly and following up diligently — then notify the seller in writing before the deadline whether it's approved, waived, or not approved.

Once you've given notice that finance is approved, you can't withdraw it — but your lender can still withdraw its own approval any time before settlement, so think carefully before notifying. What happens if you miss the notification deadline, and whether a finance condition even exists in your contract by default, both vary significantly by state — the table below compares the three, and your state's explainer carries the full detail.

Finance conditions by state at a glance

FeatureQLDVICNSW
Notice deadlineBy 5pm on the finance dateWithin 2 clear business days after the approval dateOften not a standard condition — usually a negotiated special condition
If no notice is given by the deadlineThe contract continues; both parties keep a right to terminate until notice is givenThe right to end lapses — the contract continues as unconditionalDepends on the wording of any condition added
To terminate for financeWritten notice before the deadlineWritten notice ending the contract, with the lender's written evidence, within 2 clear business days after the approval dateAs set by the special condition, through your conveyancer
Duty to pursue financeTake all reasonable stepsTake all reasonable stepsTake all reasonable steps

In practice

Finance approval in practice

In our experience, the finance clause causes more avoidable trouble than almost any other. A few patterns we see:

  • Buyers who assume their contract is automatically subject to finance, when whether that condition exists by default varies by state.
  • Buyers who let the finance date approach without notifying the seller in writing, not realising you have to take all reasonable steps to obtain approval and give notice before the deadline.
  • Buyers who rush to confirm finance is approved to keep the deal moving, then find they can't withdraw that notice even though the lender can still pull its own approval before settlement.

What we do is diarise the finance date, chase your progress with the lender, and hold off on giving notice until approval is genuinely solid.

The takeaway: treat the finance date as a hard deadline, notify in writing on time, and don't confirm approval until it's real.

Common questions

Can I take back my finance approval notice once I've given it?

No — once given, it can't be withdrawn by you, though your lender can still withdraw its own approval before settlement.

Related explainers

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