Mortgage contracts in Canada have a specified term that can range from 6 months to 25 years. However, most homeowners choose a term of 5 years. When a mortgage matures, a homeowner has the option to switch to another lender for lower rates and better conditions. Most Canadians renew with their current mortgage lender because they are not aware of the option to switch or they fear leaving their current lender in case they are not approved.
Most homeowners’ circumstances have changed for the better since they obtained their present mortgage loan, whether its increased income, or different objectives, or family structure. A re-evaluation of situation is highly desirable, particularly when one is considering extending a financial commitment.