10/07/2026
What's the best way to lose your deposit - and be left out of the market for years?
So, you're looking to purchase your first home. You already found a great mortgage broker who arranged a pre-approval for you, and you have the deposit ready to go. Let me ask you a question - is it okay to submit an offer on that dream home now, without making it 'subject to finance approval'?
The answer is 'Heck No' - but instead of telling you why, I'm going to tell you a story about Melissa and Dave.
Mel and Dave had put away money diligently for 5 years and they were keen as mustard about buying their first home. They had a pretty decent figure in the bank, enough to cover a 10 percent deposit on any property in their price range, as well as all of the stamp duties and other miscellaneous costs.
The couple met with a mortgage broker, who arranged their loan application. Everything went well, and they received a pre-approval for finance.
After looking for a couple of months, Mel and Dave found a great little property in their price range, and decided to make an offer. There were quite a few interested parties, and the selling agent mentioned that the vendor would only be considering 'unconditional offers'. It seemed that the vendor was motivated to sell, and didn't want to waste any time waiting to find out about finance approval.
After talking it over, Mel and Dave decided that they weren't really taking much of a risk by making a clear offer on the property, because their finance was already approved. They decided to increase their offer by $20k due to the heated competition, and they crossed their fingers.
To their delight, the offer was approved, and the agent dropped past to get some contracts signed and collect their deposit cheque. He left the couple with a nice bottle of ch*****ne, and it seemed like all of their hard work was finally coming to fruition.
That was until the valuation came back from their Lender. Unfortunately the lender determined that Mel and Dave had paid too much for the home. Even though they stayed under budget, their loan was not approved and they were unable to find another lender to finance the sale. As a result, the sale was unable to proceed, and the couple forfeited their deposit.
This is just one of many sad stories about people who lose their deposit by not adding conditions when they make an offer on a property. The only purchaser who can really afford to buy unconditionally is someone who has the entire purchase price in the bank, ready to dispense. Even then, a wise investor would still insert a clause making the offer subject to a satisfactory building and pest inspection.
Don't let this happen to you. Ask your Mortgage Broker or Solicitor about how to protect yourself when purchasing a home.
