In a Real Estate market that has multiple bidders considering the same property with a short timeline and limited inventory, a seller may choose to opt-out of putting in conditions or subjects in order to make an aggressive offer to guarantee that bid

Generally, subject-free offers are more frequent in a highly active real estate market where there are substantially more buyers than active inventory.

There are two types of pre-approvals:

1. Verified with documents, income, and credit reviewed. (This is a true pre-approval)

2. A pre-qualification, which refers to an online calculator or file which has not been fully reviewed.

A true-pre-approval is meant to provide a buyer with confidence due to the fact that they are aware of any income credit or down payment concerns and fully understand their lending options in advance of making an offer.

In Canada, if you are putting less than 20% down, you require mortgage insurance. Since there are only three insurers, if they do not approve you, you will not have options. We do NOT recommend a subject-free offer with less than 20% for down payment.

If your down payment is less than 20% down, you should never make a subject-free offer.

There are simply more reasons for an insurer AND a lender to opt not to lend on a strata property than a typical single-family detached home. 

For this reason, it is more difficult to provide an insurance for qualification on this type of property

An appraisal is a KEY factor of a bank's lending criteria. A lender will lend based on the appraised value not the purchased value of a property.  

Consider ordering an appraisal in advance of your offer for your maximum offer price, this can prepare you for potential issues including the economic life of a property, red flags, property value, and structural issues.

The inspection can uncover potential issues and expenses and can include wiring, plumbing, or other concerns

The inspection can confirm that your potential home is insurable. Additionally, it may provide you with more comfort of any challenges, making it less likely to regret when making a purchase.

1. If you have more than 35% down payment as well as the comfort of losing your deposit if your property is not within lending guidelines.

2. If you have completed a TRUE PRE-APPROVAL and verified your income, credit, assets, and liabilities.

3. Prepare and understand a backup plan which may consist of alternative lending solutions, family support, or cash.

4. If you have completed your appraisal and home inspection