What has to happen before my conditional offer becomes a firm deal?

From pre-approval to commitment letter

Once the offer is accepted, the lender underwrites this property: it orders an appraisal, confirms income and down payment again, and, for a high-ratio mortgage, obtains default insurance approval. The result is a commitment letter setting the amount, rate, term and the conditions the lender still requires, such as proof of insurance or an updated pay stub, with an expiry date.

Read the conditions before you waive financing. The lender then sends instructions to your lawyer. Between now and closing do not change jobs, take on new credit or move large sums without a paper trail; lenders re-check before advancing funds.

When the appraisal comes in low

The lender lends against the lower of the purchase price and the appraised value. If the appraisal is short, you make up the difference in cash, ask the seller to reduce the price, or, if your financing condition is still open, end the agreement. A financing condition worded as satisfactory to the buyer covers this; a firm offer does not, and a buyer who cannot fund the gap is in breach. In competitive markets this is the risk buyers take when they drop financing conditions.

The home inspection: no licence, so choose carefully

Ontario passed the Home Inspection Act, 2017 but it has never been proclaimed, so as of September 2026 anyone may call themselves a home inspector. Ask about training, errors and omissions insurance and a sample report. A standard inspection is visual and non-invasive; it will not open walls or test what is hidden.

Add specialised inspections where the home calls for them: a WETT inspection for a wood stove, a septic inspection and well tests in the country, an oil tank check, and questions about knob-and-tube wiring or asbestos that affect insurance. If the report finds problems, you can negotiate a price change or repairs by amendment, fulfil the condition, or walk away by the deadline.

Condominium: the status certificate review

For a resale condominium the corporation must deliver the status certificate within ten days of the request and fee. We review the money, the reserve fund, insurance, litigation and the rules and report in plain language within your condition window. Our condo status certificate page and checklist go through every item.

Waiving or fulfilling: the paperwork that makes it firm

Each condition ends with a written notice, delivered the way the agreement says, before the deadline. A notice of fulfilment says the condition was met; a waiver gives it up regardless. If a deadline cannot be met, both sides must sign an amendment extending it before it passes; a verbal promise is not enough.

Once every condition is dealt with the agreement is firm. Some agreements require a further deposit at that point. Arrange home insurance now, because the lender will want a binder naming it before closing, and send us the amendments and notices so our file matches the deal.