What If the Buyer’s Finance Falls Through When Selling My Gold Coast Property?
Selling your home can feel like a big step. And when you finally get an offer, you naturally start planning what comes next. But what happens if the buyer’s finance doesn’t get approved?
It’s more common than most people realise, especially in today’s lending climate. But don’t panic. If you’re still weighing up whether to sell, knowing how this works (and how to recover from it) can give you a big edge.
First, What Does “Finance Falls Through” Actually Mean?
When a buyer makes an offer, they often include a finance clause in the contract. This gives them time, usually 14–21 days to get formal loan approval. If their bank says no, they can pull out of the deal, and the contract becomes void.
It’s legal. It’s in the contract. And yes, it can throw your timeline off track.
But there are ways to protect yourself.
Why It Happens (and What You Can’t Control)
Even if the buyer seems serious, their finance can fall over due to:
- Changing interest rates
- Low bank valuation of your property
- Their debt-to-income ratio being too high
- Issues with the lender’s timing or paperwork
None of these are your fault. But being aware helps you plan.
What You Can Control
You can’t force a buyer’s loan to get approved. But you can take steps before and during the contract period to lower the risk and bounce back faster if it does happen.
Here’s how.
1. Ask About Pre-Approval (Before Accepting)
It’s perfectly reasonable to ask your agent:
“Has the buyer provided a copy of their pre-approval?”
A solid pre-approval doesn’t guarantee final finance, but it’s a good sign they’ve done the groundwork.
2. Shorten the Finance Clause (When Possible)
Standard is 14–21 days, but depending on the buyer and their bank, a shorter clause might be achievable.
A tighter timeframe:
- Reduces your time in limbo
- Lets you move on quicker if it falls through
You can also include a condition that requires them to notify you as soon as they know either way, not just at the last minute.
3. Stay on the Market During the Clause Period
If you’re still within the finance approval period, you don’t have to go quiet.
You can:
- Keep marketing the property
- Let others know it’s under contract – finance pending
This gives you options if the first buyer doesn’t come through.
4. What to Do If the Buyer Pulls Out
If the buyer’s finance is declined and they exit during the agreed timeframe, here’s what happens next:
- The contract is cancelled
- Their deposit (if any) is refunded
- You’re free to sell to someone else
Yes, it’s frustrating. But if you’re prepared, it doesn’t have to be a disaster.
5. Don’t Blame Yourself (or Panic-Discount)
A failed contract doesn’t mean your price is too high or the property won’t sell. Most of the time, it’s just finance red tape.
What matters now is how quickly you relist, reconnect with buyers, and keep your momentum going.
6. Have a Backup Sale Plan Ready
It pays to plan for the “what if.” A good backup strategy includes:
- A shortlist of other interested buyers
- Scripts your agent can use to re-engage them
- Understanding your legal options if needed
That way, if something falls over, you’re not starting from scratch.
Thinking of Selling But Not Quite Ready?
You don’t have to have all the answers yet. But knowing how to handle things like finance failure can give you the confidence to start having conversations, without pressure.
If you’re not sure when to list or just want to feel more prepared, let’s chat. No sales pitch. Just real answers, so you can move forward on your terms.
Author – Craig Douglas
Please Note: The information contained in this document is for general information purposes only and does not constitute legal advice. The laws and regulations governing the sale of property in Queensland are complex and constantly changing. It is important to seek the advice of a qualified property lawyer or conveyancer before making any decisions about the sale of your property. This document does not take into account your individual circumstances and may not apply to your situation. By reading this document you agree that you have not relied on the information contained herein and that you will seek independent legal advice before taking any action.
Are you ready for a casual chat?
Let’s get you Selling
LET’S GET YOU SOLD!
Phone me now, Craig Douglas 0418 189 963
Professional | Knowledgeable | Experienced
Some of the suburbs that I proudly sell homes in:
Bonogin
This page was proudly created by Craig Douglas, your local independent Gold Coast real estate agent, working for a Boutique Real Estate Agency. Selling residential and commercial properties, from those that are awe-inspiring, through to a diamond-in-the-rough, otherwise known as a “renovator’s delight“.
I negotiate and sell on behalf of property owners who want to get the best possible price, with the least amount of hassle. Let’s talk about the process of selling your property over a coffee to get you started – 0418 189 963
