Can closing be delayed if financing is not
ready?
Can closing be pushed back when your mortgage isn’t ready? Read this before you sign.
Fast answer
Yes. Closing can be delayed — but only if the purchase agreement allows it or both parties agree. When financing is not ready, the buyer, seller and their lawyers must agree to an extension or rely on conditions in the contract. Act fast. Delay without written agreement risks losing deposit, legal exposure, and stress.
What usually causes a delayed closing
- Mortgage approval delayed or final documents missing
- Appraisal or title issues
- Missing closing funds or down payment timing
- Rate lock expiring or lender needing extra documents
These are common. They don’t automatically give you the right to push the closing date.
Who has control
The contract controls the closing date. Common clauses that matter:
- Financing condition (conditional approval vs. firm approval)
- Extension clause or mutual consent provision
- Waiver of financing condition (buyer assumes risk)
If the buyer waived financing, the buyer bears the risk. If the agreement includes a financing condition, the buyer may be protected. Always read the purchase agreement before relying on verbal promises.
How to delay closing correctly — step-by-step
- Notify the seller and their agent immediately, in writing. Explain the exact issue and timeline. Keep records.
- Get a clear timeline from your lender. Ask for final approval date and any outstanding documents.
- Propose a written extension amendment to the purchase agreement. Include new closing date and any compensation (e.g., rate for extension damages). Both parties must sign.
- Involve your lawyer or conveyancer. They will update closing statements, adjust funds release, and protect your deposit.
- Consider short-term bridge financing or a lender rate-hold if deadlines are tight.
- Confirm all changes with title insurance and your solicitor to avoid last-minute surprises.
Risks of delaying closing
- Seller can refuse and treat the contract as breached
- Deposit could be forfeited or litigation started
- Moving and storage costs increase
- Interest rate locks may expire, increasing monthly payments
Know these risks before you ask for an extension.
Practical tips to avoid delays
- Get firm mortgage approval before signing a firm offer
- Keep documents ready: identification, income proof, down payment proof
- Start the appraisal and title search early
- Communicate daily with your lender and lawyer
Final take and next steps
Delays happen. The difference between a smooth extension and a disaster is speed, documentation, and the right people on your side.
Tony Sousa is a local expert who handles delayed closings every month. If your financing isn’t ready, call or email now for a direct playbook and help negotiating an extension with the seller. Contact: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
