How long is a typical finance clause?

Generally 7, 14 or 21 days. Longer gives more breathing room to get formal approval; shorter can make your offer more attractive to a seller.

Is a 7 day finance clause too short?

Not if your pre-approval is already done properly. Once the contract's signed, the bank mostly needs to value the property and sign off, which generally takes a couple of days.

Does a shorter finance clause make my offer stronger?

It can. When a seller has several offers at a similar price, they look at the terms, and a shorter finance clause means less time for the deal to fall over.

What happens if the valuation comes in low during the finance clause?

There may be a gap between the price and what the bank will lend against. A longer clause gives more time to sort that out, which is the trade-off with going short.

What is the cooling off period in NSW?

Five business days for most residential contracts. If you withdraw in that time you pay the seller 0.25% of the price, and there's no cooling off when you buy at auction.

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Straight Answers · First home

How long should my finance clause be when I'm making an offer?

Bayley Clarke · Mortgage broker on the road · Last checked 11 November 2026 · 3 min read

The short answer

Generally you can do 7, 14 or 21 days. As a broker, 21 days is great because it's cruisy: there's more than enough time to get your loan approved, and nobody's running around like headless chickens trying to get a bank to sign off inside a week.

But when a seller has a few buyers at the same price, they start looking at the terms. A seven-day finance clause can make your offer the more attractive one, and I'm happy to do seven days as long as your pre-approval is already done.

The 60 second version, filmed from the driver's seat. The rest of this page is the detail underneath it.

Why longer feels safer

A finance clause, sometimes called a subject to finance condition, gives you a set number of days to get formal approval from the bank. If the bank says no inside that window, you can generally walk away without losing your deposit. The longer the window, the more breathing room there is for things like the valuation, any extra questions from the bank and the paperwork.

That's why 21 days is the comfortable option. There's time for the bank to do its job properly, time to sort out any curly questions, and nobody's under pressure. If the seller is happy to accept it, it's generally the easiest path for everyone.

Why shorter can win you the house

Put yourself in the seller's shoes. If the market is competitive and there are a number of buyers reviewing offers, and the prices they're getting are all roughly the same, the seller starts looking at the offer terms. Someone giving them seven-day finance and seven-day building and pest is probably going to look more favourable than someone asking for 21 days, because it means less time for the deal to fall over.

So the length of your finance clause is a negotiating tool. When it's quiet, ask for the longer one and enjoy the breathing room. When there's competition, a shorter clause can be worth as much to a seller as a little more money.

Why seven days works when the groundwork's done

The reason I'm comfortable with seven days is that the hard work happens before you make the offer. With a full pre-approval already in place, the bank has generally checked your income, your expenses and your credit. Once you've got a signed contract, what's left is mostly the property: the bank orders a valuation, signs off on the property and the contract, and you'll generally get approved within a couple of days.

If your pre-approval is only a quick estimate, or something in your situation has changed since it was done, a seven-day clause is a lot riskier. That's when I'd push for longer, or get the pre-approval firmed up before you offer.

The honest bit: the valuation is the wildcard

Even with a solid pre-approval, a short clause leans on the valuation coming in where it needs to. If the bank values the property below the price, there may be a gap to fill, and less time to sort it out.

In New South Wales there's also a cooling off period of five business days on most residential contracts, though walking away in that window costs 0.25% of the price, and there's no cooling off at auction. Know your state's rules, and know your numbers, before you sign.

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Next question

Do I get my deposit back if finance falls through?

It depends on the state. In NSW there's generally no finance clause, so you lose the 0.25% cooling-off deposit.