Buyer’s guide · Queensland

Finance conditions in Queensland: what every buyer needs to know

A finance condition lets you sign a Queensland contract before your loan is formally approved. Here’s how it works, what you must do by the finance date and what happens if you miss it.

Most Queensland buyers borrow to buy, and most Queensland contracts include a finance condition, often called a “subject to finance” clause. It lets you sign the contract before your lender gives formal approval, and gives you a way out if the loan doesn’t come through.

It only protects you if you follow its rules, and the most important rule is the deadline: 5pm on the finance date. This guide explains how the finance condition works in the standard REIQ contract, what you need to do and what happens if you miss the deadline.

What is a finance condition?

A finance condition makes the sale depend on you getting approval for your loan. Until it’s dealt with, the contract is conditional. Once you confirm it’s satisfied, or you waive it, the contract becomes unconditional and you’re bound to settle.

Most Queensland homes and units are sold on contracts prepared by the Real Estate Institute of Queensland (REIQ). Since 1 August 2025, a single Contract for the Sale and Purchase of Residential Real Estate has replaced the separate contracts for houses and for units in community titles schemes. Contracts signed before then may use the older forms, and clause numbers vary, so always check the wording of your own contract and any special conditions.

The three finance details

The reference schedule at the front of the contract has three finance items:

• Finance amount: how much you need to borrow.
• Financier: the lender. This can be a named bank or a general description, such as “any financier”.
• Finance date: the deadline for finance approval.

If these items are left blank, the contract may not be subject to finance at all. Check they’re filled in correctly before you sign.

What you must do

You must take all reasonable steps to get finance approval. The condition protects you if a genuine loan application fails or the terms aren’t acceptable. It isn’t a general right to walk away because you’ve changed your mind or found another property. In practice, you should:

• apply for the loan promptly, ideally as soon as you sign
• apply to the lender named in the contract, if you named one
• respond quickly to your lender’s requests for documents
• arrange access for the lender’s valuer
• keep records of what you did and when.

If you’re not reasonably satisfied with your approval

Under the REIQ contract, you can end the contract if you’re not reasonably satisfied with your finance approval. That’s a lower bar than in most other states. But the word “reasonably” matters. If your lender offers the loan you applied for on ordinary terms, it will be hard to show you weren’t reasonably satisfied.

If you name a lender, apply to that lender

If the contract names a particular lender, apply to that lender. Courts have found that a buyer who doesn’t apply to the named lender may not have taken all reasonable steps, and may not be able to rely on the finance condition. A general description such as “any financier” gives you more room.

The finance date and giving notice

The finance date is negotiated. It’s often 14 to 21 days after the contract date, but your lender’s turnaround times should drive it, not the agent’s preference.

By 5pm on the finance date, you should give the seller written notice that:

• finance approval hasn’t been obtained, and you terminate the contract
• the finance condition is satisfied, or
• you waive the finance condition and go ahead without its protection.

Notice must be in writing and given the way the contract requires. We usually send it to the seller’s lawyer or agent for you.

There’s no automatic extension

The REIQ contract doesn’t give you a right to extend the finance date. If your lender needs more time, ask for an extension well before 5pm. It only works if the seller agrees in writing. If the seller says no, you still need to give one of the notices above by the deadline.

What happens if you miss the finance date

Many buyers assume a missed deadline ends the contract, or makes it unconditional. Under the standard REIQ terms, neither happens automatically.

• The seller can terminate. If you haven’t given notice by 5pm, the seller can end the contract by written notice.
• You can still act. Until the seller terminates, you can still give notice that you terminate, or that the condition is satisfied or waived.
• It becomes a race. If the seller has a better offer, they may terminate quickly. You could lose the property even if your loan is approved the next day.

The bigger danger is ending the contract when you haven’t taken reasonable steps. If your termination isn’t valid, the seller may treat you as being in default. That puts your deposit at risk and can expose you to a claim for the seller’s losses.

Is conditional approval enough?

Usually not. Lenders give several kinds of approval:

Read your approval letter carefully. If it still says “subject to valuation” or similar, talk to your lender and to us before you confirm the finance condition is satisfied. Once you do, you’re bound to settle, even if the lender later changes its mind.

Finance conditions and cooling-off

The cooling-off period and the finance condition are separate protections. For most private sales of residential property, you have a 5 business day cooling-off period, starting on the contract date. If you cool off, the seller can keep up to 0.25% of the price. On an $800,000 purchase, that’s up to $2,000. There’s no cooling-off if you buy at auction, and you can waive or shorten it by written notice.

Since 1 August 2025, most Queensland sellers must also give you a disclosure statement before you sign. Read it early and share the relevant parts with your lender or broker. Body corporate levies, zoning and flood information can all affect how a lender values the property.

Practical tips for Queensland buyers

Our step-by-step guide to buying in Queensland explains where the finance condition fits in the whole process.

Frequently asked questions

This article is general information only and is not legal advice. It reflects Queensland law at the date of publication. Please contact us for advice about your circumstances.

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