What happens if I waive my financing condition but then can't get a mortgage in Ontario?

Once you waive your financing condition, you are committing to purchase the property regardless of whether you ultimately secure financing. If your lender later declines your mortgage — even for reasons outside your control, such as a low appraisal or a change in your employment — you are still legally obligated to close.

If you cannot close, the seller has options. They can sue you for damages, which could include the difference between your agreed purchase price and the price the seller eventually gets from a new buyer, carrying costs during the delay, legal fees, and potentially your deposit. Depending on the circumstances, those damages can be substantial.

Some buyers waive the condition believing their pre-approval protects them. It does not — a pre-approval is conditional on the lender's final underwriting review of the specific property. Only a firm, unconditional mortgage commitment from your lender should be treated as secured financing. If you are under pressure to waive the financing condition, speak with a real estate lawyer about the risk before you do.