Five years is a long time to lock in, especially if no one is actively managing your mortgage. Many homeowners opt for the “safe” 5-year fixed-rate mortgage with their bank, thinking it’s their best option.

However, in many cases, there is zero discussion from the bank about your actual goals and what your plans are for the next five years. A lot can change in that time, including moving to a new home, and market rates may be completely different down the road.

If at any point you need to break your mortgage, you may be hit with a massive penalty on that 5-year fixed contract. Your bank won’t let you know when it’s best to break your mortgage to pay less of a penalty, or if there’s ever a savings opportunity. When you go directly to the bank for your mortgage, it’s entirely up to you to self-manage it as proactive management is usually non-existent.