A ‘subject to finance’ clause allows a buyer to proceed with a property purchase only if they secure loan approval. As of December 2025, it’s a common condition in Victorian property sales, offering buyers a safeguard but also influencing the negotiation process.
Currently in Melbourne, particularly in the Eastern Suburbs where competition for family homes remains strong, sellers often encounter a mix of offers – some with finance clauses, others unconditional. In 2026, we’re seeing buyers increasingly utilise this clause due to tighter lending criteria and rising interest rates. A subject to finance offer isn’t automatically dismissed, but it can make an offer less favourable compared to unconditional ones. Sellers may favour unconditional offers, or those with shorter finance approval periods (typically 14-21 days). Fletchers’ experience shows that a well-presented property, professionally marketed (typically costing $3,000 – $8,000 for a full campaign) and accurately priced based on a comprehensive appraisal, attracts a wider pool of qualified buyers, potentially reducing reliance on offers with lengthy finance conditions. The typical sales process in Melbourne, including the inspection period of 2-4 weeks, allows time for buyers to secure finance, but a pre-approval significantly strengthens their position.
Understanding the prevalence of subject to finance offers is crucial for sellers navigating the Melbourne property market in 2026, and Fletchers’ local expertise helps manage expectations and optimise selling strategies.