In Quebec, the purchase offer is the document by which a buyer commits to acquiring a property. The financing clause plays a central role: it makes that commitment conditional on obtaining a mortgage. In the 2026 rate context, which we cover in our summer 2026 market outlook, understanding this clause is essential to buying with confidence. Here is what you need to know before you submit your offer.
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1. What the Financing Clause Is For
The financing clause makes the purchase offer conditional on obtaining a mortgage on the terms you specify (amount, rate type, term). If, despite genuine efforts, your lender refuses to finance the property, you can withdraw from the transaction without penalty and recover your deposit. It is the buyer’s single most important protection: it prevents you from being legally bound to purchase a home you cannot finance. It applies in particular when the lender’s appraisal comes in below the agreed price.
2. The Deadline to Obtain the Loan
The clause sets a deadline — typically 7 to 15 days after the offer is accepted — to obtain a firm answer from the lender. This deadline must be realistic: long enough for the file to be reviewed (income proof, appraisal, loan insurance), but not so long that your offer becomes less attractive than another. A deadline that is too short risks missing the cutoff; one that is too long weakens your position with the seller. The right balance is set with your broker, based on your file and the competition for the property.
3. The Link with Pre-Approval
Beware of a common confusion: the financing clause does not replace pre-approval. Pre-approval is a preliminary assessment of your borrowing capacity, obtained before you start shopping; the clause protects your offer once you have found a property. The two are complementary. A solid pre-approval speeds up the final loan, reassures the seller and reduces the risk that the clause is triggered. Without pre-approval, you sometimes discover too late that your real capacity is lower than you expected.
4. The 2026 Rate Context
In 2026, the Bank of Canada holds its policy rate at 2.25%. On the mortgage side, the variable rate sits around 3.3% and the fixed rate around 4%. This context directly affects qualification: the lender tests your ability to repay at a rate higher than your contract rate. A gap between the rate you expect and the one the lender uses can reduce the amount granted — which is exactly why a well-drafted financing clause matters, giving you an exit if the final financing does not match your projections.
5. The Risks of an Offer Without the Clause
In a competitive market, some buyers drop the financing clause to make their offer stronger. It is a risky bet: without it, you are legally bound to purchase even if your loan is refused, and you risk losing your deposit and facing damages. You should only waive it with financing already firm, or the cash to pay outright. Our advice: get pre-approved, set a realistic deadline, keep the clause unless you are absolutely certain, and always have your purchase offer drafted by an OACIQ-certified broker.