Can I cancel my home loan after it's unconditionally approved?

Yes. You don't have to sign the loan documents, and even after signing you can generally withdraw before settlement. Some costs, like valuation or rate lock fees, may not come back.

Can I pull out of buying a house after the contract is unconditional?

Not without consequences. Once the purchase contract is unconditional, walking away can mean losing your deposit, and the vendor may be able to pursue further losses.

What's the difference between the loan and the purchase contract?

The loan is between you and the bank. The purchase contract is between you and the vendor. Pulling out of one doesn't release you from the other.

When should my purchase contract go unconditional?

Ideally once your loan is unconditionally approved in writing. Your finance clause should give enough time to get there.

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Straight Answers · First home

Can I pull out once my loan is unconditionally approved?

Bayley Clarke · Mortgage broker on the road · Last checked 11 November 2026 · 2 min read

The short answer

From the loan, yes. You can pull out of the loan contract if you want to, you just don't sign it. And even after you've signed, you can generally withdraw the application before it settles.

Your loan and your purchase are two different contracts. If you're unconditional on a contract to buy a property, you can't just pull out of that one, because you may be at risk of losing your deposit.

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

Pulling out of the loan

A loan approval isn't a commitment to borrow. Once you're unconditionally approved, the bank sends out the loan documents, and nothing is locked in until you sign them and the loan settles. If you decide you don't want it, you just don't sign.

If someone's done the hard work to get you approved and you want out because something's wrong with the property, or it just doesn't feel right, look, stuff happens. You're better off looking after number one, which is you. If that means pulling out of the loan, then do it. Even after you've signed, you can generally withdraw the application before settlement. Depending on the loan there can be some costs, like a valuation fee or a rate lock fee you've already paid, so ask before you assume it's free.

Pulling out of the purchase

This is the one that matters. When you buy a property, your contract with the vendor usually has a finance clause or a cooling off period, and while those are running you've got a way out. Once the contract goes unconditional, that's gone, and you've agreed to buy the place whether you go ahead with that loan or not.

If you then walk away from an unconditional contract, you may be at risk of losing your deposit, and the vendor may be able to come after you for more if they end up selling for less. So you can absolutely say no to a loan, but saying no to the loan doesn't get you out of the purchase. If you're unconditional on a signed contract to buy, there are a few more things to think about, and your conveyancer is the first call.

The honest bit: get your timing right before you go unconditional

Most of the pain here comes from going unconditional on the purchase before the loan is actually unconditional. If the loan wobbles after that point, you're exposed.

So the order matters. Get the finance clause long enough to get the loan through, and only let the contract go unconditional once the bank has said yes in writing. That's the bit I line up with your conveyancer.

Signing a contract soon?

A 30 minute call. We go through your finance clause, where your approval is at, and the timing between the two so you're not exposed.

Book a 30 minute call Call 0437 189 939

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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.