You know those people .. the ones that boast about how they got this great mortgage rate and you feel like a schmuck!

Well, the Bank of Canada conducted an extensive study on mortgage discounting and Canadian Mortgage Trends summarized their conclusions below. 

The Canadians who get the best mortgage rates are those who:

Bargain

• Banks don't offer their best rates up front.  They give better deals to skilled negotiators and well-informed borrowers.

Have larger mortgages

• ".....since few negotiate the renewal of their mortgage ... (this) provides lenders with an incentive to attract consumers with larger loans who have large outstanding balances at the time of renewal."

Use a Broker

• Report states that mortgage brokers lower the "search costs"of getting multiple quotes that translate into lower rates
• "Over the full sample the average impact of a mortgage broker is to reduce rates by 17.5 basis points."  That's $1,670 of interest savings on a typical $200,000 mortgage over a 5 year period.
• Bank "mortgage specialists offer convenience to consumers, although they do not reduce search costs.  This is because they work for one lender only."

Click Getting the Best Mortgage Rate