It really helped. The first time we were looking to buy a house we called all of these different banks and gave them our information so that they could check our credit . What happened was the next bank would ask questions like "How come there are so many financial institutes listed checking your credit? Were you declined credit?" We of course had been trying to get the best possible mortgage rate without realizing how much damage we were doing.

    A mortgage broker will  print up your credit information once and then they will let other banks and financial institutes compete for your business by providing your information......this means that only one institute (the mortgage broker) will show up as checking your credit and he/she will provide that information to the banks.

    4 1/2 years ago we ended up with a 4% interest rate...however  we are due for renewal this July 2007 and we will be going through a mortgage broker again to get the best possible deal.

     Also what we found so very helpful is that we had our mortgage payments changed to pay biweekly accelerated opposed to paying our mortgage once a month....not only does it put a bit of extra on the mortgage which really adds up in a big way but it helped us from feeling overwhelmed by having to pay such a larger lump sum once every month.

Great ideas about saving on the mortgage.  There is one other thing that you can do...change the amortization period.  We currently have a 5 year mortgage that is amortized over 25 years. My mortgage company allows me to renew my mortgage at anytime to take advantage of great rates, so I am going to probably go for a 10 year mortgage with a 10 year amortization (as soon as I can!).  It will cost me a few hundred more dollars every month, but I will be shaving about 14 years off of how long I am paying, thus saving thousands in interest.  Most bank websites have mortgage calculators on them, so renew early if you can and take advantage of lower rates!

Kristina,

Which bank are you using to allow you to renew at anytime?  Sounds like a good plan.

We are using First National...they are a mortgage company that we were introduced to through our mortgage broker.  Their website is http://www.firstnational.ca.  

I agree... always go with a Broker and he/she will find you the best rates. Never go straight to a bank and take what they are offering...they can do way better.

In addition to bi-weekly payments, most mortgages out there also offer pre-payment options. This allows you to pay a large chunk of money towards your mortgage even if you have a closed mortgage and you can also increase your mortgage payments a few times a year. It may not seem like much but it will save years off your mortgage in the end and save you Thousands in interest payments.
Most banks dont really remind their clients about these options much obviously as the quicker you pay off your mortgage, the less money they make off you.

http://www.free-your-money.com/mort_tips.htm