The biggest monthly expense for most Canadians is their mortgage payment.

Yet according to an Angus Reid survey, almost 27 per cent of households automatically renew their mortgages when the term is up instead of trying to find a better deal.

Here are six tips to help you lower your payments come renewal time.

Get going early
Start shopping around for a better rate four to six months before your mortgage is up for renewal.

That's the longest lenders will guarantee a discounted rate, says Vancouver's Robert McLister, editor of Canadian MortgageTrends.com. "If [your current lender's] rates rise, you've got your guaranteed rate to fall back on. If they drop, you simply renegotiate a lower rate."

Do your homework
Before negotiating a lower rate from your bank, find out what other lenders are offering. Plenty of websites post current rates from all the banks (canadamortgage.com is a good one), which can vary widely.

For example, at press time, Scotiabank's rate for a five-year closed-term fixed rate mortgage was 5.29 per cent, while ING Direct's was 3.59 per cent.

Never accept the bank's posted rate
"You might as well hand your wallet over to the lender," says McLister. If you determine 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 Alan Silverstein, a real estate lawyer in Toronto and author of The Perfect Mortgage: Cutting the Cost of Home Ownership (Stoddart, 1995). He also notes that banks may be more willing to lower your rate if you transfer over other accounts or investments, such as an RRSP.

Negotiate on other available options
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.

Change lenders
"A lot of people renew with their lender and don't even think about switching to another one, despite the fact that they could do better," says Silverstein. And there's no penalty if you switch at renewal time.

Broker a deal
If you don't like negotiating and don't have the time to research rates, a mortgage broker will do the legwork for you -- usually without charging you anything, since they are paid a commission from the lenders.

According to the Bank of Canada, people who use a broker usually pay less than those who don't.

Using a broker can typically save $1,670 of interest on a $200,000 mortgage over five years. "The results of using a good broker are twofold," says McLister. "Better rates and a less restrictive mortgage."

Did you know
Saving even half a percentage point on your mortgage rate can save you up to $10,000 over 25 years (based on a $150,000 mortgage).

Anne Bokma is exactly four years and six months away from paying off her mortgage and is dreaming of all the things she'll be able to do with the extra money.

This story was originally titled "Up for Renewal" in the May 2012 issue. Subscribe to Canadian Living today and never miss an issue!