Real Estate

For pre-approvals you are not going to use, do you need cancel them?

  • Last Updated:
  • Mar 5th, 2020 5:05 pm
[OP]
Newbie
Apr 6, 2009
20 posts
5 upvotes
Ottawa

For pre-approvals you are not going to use, do you need cancel them?

Our situation is this. Got a pre-approval from National Bank via a broker. However, broker could not get the lowest rate (even with the rate drop), and we have decided to go with HSBC. HSBC has completed the final approval, but no document yet as the underwriters are swamped (heard this is a common occurrence).

The broker has e-mailed us concerning the pre-approval from National Bank, we informed her that we are most likely going with HSBC, and now she has send several e-mails to confirm that we will cancel the pre-approval.

So my question is:

1. Any reason why is the broker so insistent on canceling the pre-approval? Any issues with leaving it there just on the extremely unlikely chance HSBC gets delayed or pulls at last minute?
2. What happens if I don't explicitly cancel the pre-approval, or use it?

Thanks.
2 replies
Member
Aug 22, 2016
371 posts
202 upvotes
You just let it lapse. if you are not dealing with the same broker for the HSBC deal, you just don't give any additional info the broker. When you need them back just call them back.
Member
Jun 15, 2015
229 posts
273 upvotes
Thornhill, ON
The broker just wants to clear it off his/her inventory list. Otherwise, he/she will need to keep following up with you. You are under no obligation to take the mortgage.

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