When you’re making an offer on a property it’s always great if you can be pre-approved. This speeds up your approval process considerably and will lessen the amount of time your broker advises you to allow on a contract for your finance confirmation.
If you’re not pre-approved the recommended finance time frame is likely be 21 – 28 days at the moment depending on the complexity of your deal.
Now, what happens if the real estate agent recommends you put 14 days and suggests you just ask for an extension if you can’t get it through in time? Nine times out of ten this would probably be fine – BUT – what happens if you don’t get your finance through in 14 days? And what if during those first 14 days a cash buyer comes on the scene who loves YOUR property and wants to make a cash offer should your finance not come through? You guessed it – you could very well miss out – and not because your finance won’t get approved, just because it will take the time your broker said it would (currently some banks don’t even pick up a file for 10 days!)
If your agent is wondering why you need a 21 day finance clause, put them in contact with your broker who can advise them the reasons behind and reassure them.