What happens if my financing falls through after I have an accepted offer?
If you kept a financing condition and it fails within the deadline, you walk away and your deposit is returned. If you waived it, you must close anyway or breach the agreement, losing the deposit and exposing yourself to a claim for the seller's loss.
With a financing condition, the mechanism is clean: you notify the seller before the deadline that the condition is not satisfied, the agreement ends, and the brokerage releases your deposit. In practice both parties sign a mutual release.
Without the condition you have an unconditional contract. If you cannot fund it, you have breached. The seller keeps the deposit and can sue for their loss on resale, which in a falling market has produced Ontario judgments well beyond the deposit amount. Those cases are real and buyers have lost hundreds of thousands.
This is why waiving financing is a decision to be made with a number attached: how much cash could you actually produce if the appraisal came in low or the lender declined the property. If the answer is nothing, keep the condition.
Next questions
What conditions should I put in my offer?
Financing and inspection at minimum, plus status certificate review on a condo. Each is a dated right to walk away with your deposit, and each one you remove makes your offer stronger and your position worse.
Ontario
Can I back out of an accepted offer?
Only through a condition, before its deadline. Otherwise you are in breach: the seller keeps your deposit and can sue for their loss on resale, which Ontario courts have awarded well beyond the deposit amount.
Ontario
What happens if the appraisal comes in below what I agreed to pay?
The lender lends against the lower of price and appraised value, so the shortfall becomes cash you must find. With a financing condition you can walk; without one you must close or breach.
Canada-wide