With interest rates over 4 per cent lower than a year ago, house prices flattening and government incentives geared to help Kiwi's save, there's no doubt this is a golden opportunity to enter New Zealand's property market.

If you're looking to capitalise on the current market - or have a budding first home owner in the family - there's a number of ways to better your spending position and make more informed buying decisions. Here are some tips to get you on track to securing your first home.

Educate yourself - Knowledge is power and it always pays to do some preliminary fact finding before diving into the property market. Make sure you do plenty of research on the area you're interested in and find out exactly what government initiatives you are eligible for as a first home buyer, such as KiwiSaver. MM Mortgage Brokers has the information and details and benefits are just a phone call away.

Visit a broker - With loan data at our finger tips as well as solid experience assisting borrowers to secure property financing, a mortgage broker is an indispensable asset when entering the mortgage market for the first time. We'll be able to answer all your questions - regardless how silly they might seem to you - and we can also save you precious time shopping around for the deal that best suits your situation.

Get a pre-approval - We can help you arrange a pre-approved loan. This will not only offer an indication of exactly what you can afford, it will essentially give you the green light to make an offer on the right property as soon as you find it.

Know what you want - Once you know your price range, think carefully about what's important to you in your property. Different features come at different costs, for example consider whether four bedrooms are an essential over a pool and a double garage.

As interest rates have come down, a once-in-a-lifetime opportunity now exists for some households to get ahead.

If you had the chance to wipe more than $100,000 off your mortgage and pay it off in half the time would you? If the answer is yes, the good news is - it may be possible.

Since the Reserve Bank of New Zealand (RBNZ) started easing the cash rate in July last year the average household with a variable rate mortgage is now around $600 better off every month when it comes to loan repayments.

While some households may be enjoying the perks an extra hundred bucks or so a week delivers, those households who choose to use that extra cash wisely will be the ones enjoying the good life in the long term.

Here are just a few ways to stretch those extra dollars further. For complete, individually tailored advice be sure to give me a call and we'll discuss a strategy for you.

Reduce other debt: With such a substantial increase in cash flow take this opportunity to wipe out any other debts - particularly personal loans or credit cards, where interest rates may be more than double those on your home loan.

Save: If rising unemployment is a concern for you - or you're expecting significant changes to your lifestyle in the immediate future - it's wise to dedicate at least some of the reduced interest payments to a savings account. Not only are savings a worthwhile contingency plan they are great for unexpected costs - such as a new baby or illness, and a way to make small pleasures like holidays a reality.

Keep your repayments the same: If your repayments last year weren't sending you broke, the best thing you can do is continue to pay the same amount off your mortgage.

Take a $250,000 home loan on a 30 year term, for example. If your interest rate is 5.7 per cent instead of 9.7 per cent your repayments would decrease from around $2,140 to $1,450 per month over the life of your loan.

If, however, you made repayments of $2,000 every month you could save over $140,000 in interest over the life of the loan and pay your loan off in just 14 years!*

Remember, if you're on a fixed rate mortgage - which a lot of Kiwis are - and have not benefited from the RBNZ's drop in the official cash rate, it may be worthwhile assessing your current mortgage and whether there may be a more appropriate product available. Give me a call and we'll explore your options - you may be able to save considerably.

*Assuming your interest rate remains the same for the life of your loan.

You love the kitchen, the balcony's great and the building appears to be in ship-shape. Time to sign the dotted line? Wrong!

While a property may appear to be in good condition to you and well worth its asking price, only a professional can really ensure you're making a smart purchase.

To arrange an expert opinion - and give you peace of mind - organise a licensed builder to visit your property before you buy. They can check the condition of the interior, the roof, under-floor and inter-wall spaces to determine whether there are any significant building problems or hazards you need to be aware of. They'll then provide you with a detailed summary of the property's condition, usually in a checklist format.

What you'll gain
Such an inspection could save you thousands of dollars, in two key ways. First, if the property has some minor problems you may be able to drive down the purchase price. Second, the inspection could uncover more serious problems, which could see you incur substantial repair and maintenance costs in the long run, or even worse, threaten the value of the property. For this reason the inspection is vital!

What it will cost
The price of a pre-purchase inspection will depend on the property and the time taken to undertake the examination, but as a rule of thumb a standard report for a typical residential property should set you back around $500 - a worthwhile investment.

Don't forget, you will need to get the vendor's permission to have the property inspected.

If you're not sure how to arrange a pre-purchase inspection or have any questions give me a call - I can run you through the basics and even point you in the direction of a well-respected local builder.

The official cash rate is now at its lowest point since it was introduced in March 1999. While this highlights an economy whose health may be faltering, the flipside is that the interest rate on the typical standard variable rate mortgage is now dramatically lower than what is was last year. Moreover, new fixed rate mortgages are markedly down on years prior.

Kiwi households with variable rate mortgages are now up to $600 better off each month when it comes to mortgage repayments compared to June 2008 when rates started to nosedive. This reprieve from high interest rates can offer borrowers the perfect time to create a buffer in their mortgage by driving the principal component down; this can be done through keeping repayments consistent with what you were paying last year. This simple strategy can not only potentially save thousands in mortgage repayments it can take years off the life of your loan.

Another key tool to drive your principal down is to place any lump sum payments you receive direct into your mortgage - such as an inheritance or tax rebate. The more cash you place in your mortgage, the quicker you'll pay it down - and remember you can usually unlock any additional funds from your mortgage for future use.

Most importantly, review your home loan regularly to determine whether it still has the most competitive interest rate. As rates have come down there are now some very good fixed rate deals on the market.

If you'd like to discuss these as well as a number of other mortgage reduction strategies give me a call.

Rates continue downward slide

New Zealand's economy continues to suffer under the weight of the international downturn and the coming months look set to remain tough.

In a bid to shield the economy from the ongoing international turbulence the Reserve Bank of New Zealand (RBNZ) cut rates by another 50 basis points in March.

The cash rate now sits at an all time low of just 3 per cent - 5.25 per cent lower than its peak last July.

While the outlook for the global economy remains bleak RBNZ governor Allan Bollard said monetary policy measures, combined with extensive government stimulus initiatives now in the pipeline, could see domestic conditions start to improve in the second half of the year.

Overall economic growth for the year to March is now forecast to contract by 2.2 per cent but should return to positive growth in the following year.

In the housing market, activity remains slow however sales figures did pick up in February compared to the very weak numbers recorded in January.

Monthly sales rose to 5,228 in February compared to 3,706 in January, the Real Estate Institute of New Zealand (REINZ) said. Compared to the hey-days of 2007, sales are now down by around 40 per cent.

The good news for existing home owners is that house prices are continuing to hold steady in spite of the weak market. The median house price sat at $330,000 in February, according to the REINZ, only slightly lower than February 2008's $337,500 and February 2007's $335,000.

While house prices should hold their ground, there's no doubt the current recession and rising unemployment are the cause of stress to most home owners right now.

If you have any concerns about your ability to service your home loan be sure to give me a call - the quicker any servicing concerns are addressed the better. We can work through a number of ways to ease your mortgage pressure such as reducing repayments by increasing the term of your home loan.