Several factors could prevent you from automatically renewing with your current lender.

• You’ve missed mortgage payments over the term.

• The lender becomes aware that you’ve recently claimed bankruptcy.

• The lender becomes aware that you’re going through a separation or divorce.

• The lender becomes aware that you lost your job.

• Someone on the initial mortgage contract has passed away.

• The lender no longer likes the economic climate and/or geographic location of your property.

• The lender is no longer licensed to lend money in Canada

So how do you protect yourself?

Well, the first plan of action is to get out in front of things. At least 120 days before your mortgage term expires, you should be speaking with an independent mortgage professional to discuss all of your options. By giving yourself this lead time and seeking professional advice, you put yourself in the best position to proactively look at all your options and decide what’s best for you.

When assessing your options at the time of renewal, even if the lender offers you a mortgage renewal, staying with your current lender is just one of the options you have. Just because your current lender was the best option when you got your mortgage doesn’t mean they are still the best option this time around. The goal is to assess all your options and choose the one that lowers your overall cost of borrowing. It’s never a good idea to sign a mortgage renewal without looking at all your options.