They die because of conditions.
In 2026, one of the most common phrases homeowners hear is:
“You’re approved — subject to conditions.”
It sounds like good news.
But behind the scenes, the conditions list is where many mortgage deals quietly fall apart.
What Is a Mortgage Conditions List?
When a lender issues a conditional approval, they attach a list of requirements that must be satisfied before funds are released.
This list can include:
Additional income documents
Updated bank statements
Appraisals
Proof of debt repayment
Letters of explanation
Legal confirmations
On paper, it looks routine.
In practice, it’s often where reality collides with policy.
Why Conditions Matter More Than Approval
A conditional approval is not a guarantee.
Every condition is a risk checkpoint.
Miss one, delay one, or fail to satisfy it perfectly — and the lender can:
Reduce the approved amount
Add new conditions
Re-underwrite the file
Or quietly withdraw the approval
Many borrowers never realize the deal is in trouble until the last minute.
The Conditions That Kill Deals Most Often
❌ Updated Income Verification
Lenders frequently ask for:
Recent pay stubs
Year-to-date income confirmation
Employer letters
If income has changed, fluctuated, or can’t be verified cleanly, approvals unravel fast.
❌ Appraisal Conditions
An appraisal isn’t just a value check.
If it comes in:
Lower than expected
With property issues
With zoning or use concerns
The lender may cut the loan amount or walk away entirely — even if equity still exists.
❌ Proof of Debt Repayment
Borrowers are often told:
“Pay this off and we’ll proceed.”
But once debt is paid:
Credit files update
Ratios change
New waiting periods appear
Ironically, doing what the bank asks can trigger new conditions.
❌ Bank Statements & Large Deposits
Large deposits raise questions.
If funds:
Can’t be sourced clearly
Came from family, business, or cash
Were recently moved between accounts
The lender may pause or re-review the file.
❌ Property & Title Issues
Conditions tied to:
Tenants
Secondary units
Title changes
Easements or encroachments
Often require legal sign-off — and delays here kill timelines.
Why These Conditions Aren’t Explained Upfront
Banks don’t front-load conditions because:
They rely on automated approvals
Risk is reassessed later
Policies change mid-file
Multiple departments review conditions separately
To the borrower, it feels like the rules are changing as you go.
To the bank, it’s risk management.
The Most Dangerous Part: Timing
Conditions are usually reviewed right before funding.
That means:
Little time to fix issues
No backup plan
Renewals or closings at risk
This is why deals collapse days before completion — not weeks.
How Private Lending Handles Conditions Differently
Private lenders still use conditions — but they work differently.
They:
Identify issues before issuing terms
Focus on property value and exit strategy
Avoid unnecessary document loops
Make decisions early, not at funding
Fewer surprises.
Clear expectations.
Where Lendworth Fits In
At Lendworth, we treat conditions as deal-breakers unless addressed upfront.
We:
Pre-review files the way lenders do
Flag condition risks early
Structure solutions that actually fund
Step in when bank conditions stall or collapse deals
Most failed deals weren’t bad deals — they were over-conditioned deals.
The Bottom Line
Mortgage deals rarely fail loudly.
They fail quietly — condition by condition.
If your approval feels fragile, stalled, or overloaded with requests, it’s a sign the deal may not fund as expected.
Understanding the conditions list — and planning around it — is often the difference between closing and starting over.
📞 Concerned your mortgage conditions won’t clear?
Call 905-597-1225 or visit www.lendworth.ca
Your equity deserves more™