Along with your other financial goals, you should make a list of what you’re looking for in a mortgage product. To start, ask yourself a few questions:

• Does your monthly budget have room for you to increase your mortgage payment amount? (If so, review the monthly prepayment options in the terms and conditions.)
• Do you think you will receive any bonuses or inheritances that you could put towards your mortgage? (If so, you’ll also want to look at the lump sum prepayment options.)
• Do you think you will have the option to pay off your mortgage entirely, in this next term? (If that being the case, consider the prepayment penalties that go with fixed vs. variable rate mortgages.)
• Do you think you will want to borrow more money from your lender during this next term? (If that is the case, you will again want to consider the prepayment penalties involved in a refinance, or look at collateral mortgages instead.)
• Is there any chance you will be selling your home and/or moving in the next 5 years? (In that case you may need a mortgage that is portable or assumable.)
• Can I negotiate during renewal?

"You may as well hand your wallet over to the granter," says a buyer. If you identify that your current lender has the best mortgage features, advice and policies, ask your bank to match a competitor's lower rate.

"If you don't come right out and ask for a better rate, you won't get one," says a real estate lawyer in Toronto. He also claims that banks might be more desirous of lowering your rates if you transfer over other accounts or investments, such as an RRSP. Don't just fixate on the interest rate. The amortization period, the rate type (fixed or variable) and the flexibility of the payment schedule can be crucial to lowering your costs.