The bitter truth is that some Canadians like to renew their mortgage as often as they renew their magazine subscriptions. There are many that simply sign the renewal notice that arrives in the mail. Beyond any doubt, signing a renewal notice without understanding the revised terms and conditions is an approach that can cause a serious impact on your financial situation. Anything from interest rates to your financial situation can transform between the time you took up the mortgage and your first renewal.

Re-evaluate your Requirements: Ask yourself the following questions at the time of mortgage renewal.

• Do the services of your existing lender satisfy you?
• Do you wish to vary your payment routine?
• Can you afford to make extensive prepayments?
• Do you want to employ other options for mortgage?

When you ask yourself the above mentioned questions, you get a better idea of your mortgage needs. Furthermore, you realize what you should demand in your mortgage renewal.

Make Efforts: The amount of time and effort you spend while shopping for a mortgage should also be utilized for renewing it. You, as a homeowner, should not accept the first mortgage rate that your current lender offers as he/she may not offer you the best rate in your renewal notice. If you just sign up for the market rate without much negotiation, you may end up paying unnecessary costs on your mortgage.

Shop Around: Make sure to consult different brokers and lenders to look for a new mortgage that best fits your interests and needs. The involved terms and conditions should have the potential to work in your favour. In this aspect, you need to plan ahead and start shopping months before the renewal date. Homeowners have an option of renewing their mortgage terms by mail, phone, or online. However, most financial experts opine that personally visiting a potential mortgage lender is the most valuable strategy.

One of the biggest expenses that a majority of Canadians support is their mortgage. In this scenario, it is important to utilize the most feasible mortgage terms and interest rates. Simply relying on your existing lender and not shopping around can put your finances in jeopardy. Therefore, search different mortgage options at renewal time so that you can save a significant amount of money over the span of your loan.

If you do not take appropriate actions to renew your mortgage, it might be renewed for an additional term on its own. It implies that you may not be in a position to get the conditions and interest rates that you possibly could.