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Your First Home Finance Checklist

Buying your first home in WA is exciting—but the finance side can feel like a maze. The good news? With a clear first home finance checklist, sensible budgeting, and the right broker in your corner, you can move from browsing to buying with confidence. This guide walks you through the practical steps: organising your money, understanding borrowing power, securing pre-approval, and making the most of grants and government guarantees (including key updates as of 1 October 2025). So, if you’re on the hunt for your very first home, start here.

1) Get your savings, spending, and budget in order

To kick off your first home finance checklist, start with a realistic snapshot of your cash flow. Map out income, bills, subscriptions, transport, groceries, and discretionary spend. Then set a target for:

  • Deposit (aim for 5–20% depending on your strategy and eligibility),
  • Buffer (3–6 months’ expenses for safety), and
  • Upfront costs (see Section 5). You could consider opening a separate high-interest account for your deposit, automate transfers, and trim non-essentials. Consistent savings matter—lenders scrutinise account conduct and regularity. If you use buy now pay later (BNPL) schemes or multiple credit cards, consider consolidating or closing unused limits as they can reduce borrowing capacity.

If you’re looking to get a head start in getting your living expenses together, feel free to use our free template (click here).

2) Borrowing power & pre-approval (know your numbers)

Your borrowing power depends on income, existing debts, living expenses, and lender policy. A broker can model scenarios across lenders (each lender is different) and show how tweaks—like paying down a credit card or increasing your deposit—can lift your capacity.

Pre-approval (a conditional loan approval) helps you shop with confidence and set a firm price ceiling. It also speeds up the contract stage and reduces the risk of finance falling through. Remember: pre-approvals have expiry dates (often ~90 days) and may be reassessed if your circumstances change (job, debts, dependants) or if rates move.

3) Line up a broker early (and why that matters)

An experienced broker (like McKinley Plowman’s Finance team) compares lenders, policies, rates, and fees—then manages paperwork from application through to settlement. Beyond “the rate,” we look at assessment rules, eligibility for government schemes, cash-backs (if available), product features (e.g. offset/redraw), and your medium-term plan (e.g., refinancing later if rates move). We’ll also coordinate with a settlement agent/conveyancer to keep the process moving.

4) Make the most of Government support (WA + national)

WA First Home Owner Grant (FHOG). Eligible buyers of new homes may receive a $10,000 grant. There’s no income test, but property value caps apply (different north/south of the 26th parallel) and you must live in the home for at least six months within 12 months of completion. Check the fact sheet and eligibility rules before you commit.

First Home Owner Rate of Duty & Off-the-Plan Duty Concessions (WA). Transactions from 21 March 2025 benefit from higher thresholds—potentially reducing (or eliminating) transfer duty for eligible first home buyers—and extended/expanded off-the-plan concessions through to 30 June 2026, with stepped concessions up to $750k. Always confirm current thresholds for your area and property type before signing.

Home Guarantee Scheme (HGS). From 1 October 2025, the Australian Government expands the Scheme for first home buyers: unlimited places, no income caps, higher property price caps, and simpler regional access. In WA, the Perth price cap rises from $600,000 to $850,000; “rest of WA” from $450,000 to $600,000. With as little as a 5% deposit, and no Lenders Mortgage Insurance (LMI) thanks to the Government guarantee, more buyers can enter sooner. Additionally, the HGS also lowers the lender ratio level to 80% which provides attractive interest savings and increased borrowing power. Apply to participating lenders via your broker, and they can guide eligibility and submission processes.

Note: Broadening access may increase competition for entry-level stock; acting with a sound budget and pre-approval remains essential.

5) Budget for the full cost of buying (not just the deposit)

Alongside your deposit, your first home finance checklist should plan for:

  • Transfer duty (check concessions/thresholds that may reduce or eliminate duty)
  • Settlement agent/conveyancer fees
  • Loan costs (application fees, valuation, lender legal—varies by lender)
  • Insurances (building before settlement if required; contents post-settlement)
  • Moving & connection costs
  • Strata levies / council & water rates (if applicable)
  • Fittings & minor works (window treatments, landscaping, fencing)

If you’re eligible for the HGS/FHBG, you may avoid LMI—a saving worth tens of thousands on some purchases. Your broker will model scenarios showing deposit vs. LMI trade-offs under current and post-October settings.

6) Choose property type & contract structure with eyes open

Each pathway has different finance timing and risks:

  • Established properties: Often quicker; finance and building/pest inspections within tight timeframes.
  • House & land packages: Two parts (land loan + construction loan); valuations, progress payments, and build contingencies matter. Also do your research on potential builders to ensure they have a good track record for delivering homes on time and on budget.
  • Off-the-plan apartments/townhouses: Longer lead-times; ensure sunset dates, specifications, and duty concessions are understood.

Government schemes have rules about eligible property types—always confirm before you sign.

7) Documentation: get “finance-ready”

A critical part of your first home finance checklist allows you to speed up approval by assembling:

  • Income (payslips, group certificates, tax returns if self-employed)
  • Bank statements (savings history, day-to-day)
  • Evidence of debts (statements for HECS/HELP, credit cards, personal/vehicle loans)
  • ID (passport/driver’s licence/Medicare)

8) Strategy: timing, competition & what changed on 1 Oct 2025

With WA’s new duty settings in place and the HGS expansion as of 1 October 2025, many first home buyers will find it easier to qualify—and compete. Price caps lifted to $850k (Perth) and $600k (rest of WA) broadens the pool of eligible properties, but more eligible buyers can mean more competition. Time is of the essence — a pre-approval and clear budget could help you move before the rush really picks up, while still leaving room to refinance later if rates ease.

How McKinley Plowman can help

  1. Borrowing Power & Plan: We’ll run the numbers across multiple lenders and outline a clear budget range.
  2. Pre-Approval: We prepare and submit a strong application—fast.
  3. Scheme Access: We’ll check and manage eligibility for FHOG, first-home duty concessions, Home Guarantee Schemes and more, and prepare applications with participating lenders.
  4. Settlement to Move-in: We coordinate with your settlement agent, track milestones, and keep things on schedule.

Your first home could be closer than you think—if you approach finance with a plan. Use this checklist, get your pre-approval sorted, and leverage WA and national support where eligible. For tailored advice and hands-on help from application to settlement, speak with the Finance team at McKinley Plowman today. Call (08) 9301 2200 or reach out via our website contact page. We’ll help you move from “looking” to “owning” with confidence.

 

References & Further Reading:

written by:

Paul has over 35 years of experience in finding financial solutions for homebuyers, investors and business owners.
A licensed broker and member of the Mortgage & Finance Association of Australia (MFAA), Paul’s extensive experience includes 20 years with a major bank, seven of which were as commercial banking manager.
Paul delivers a holistic financial solutions to achieve the best possible outcome for a client’s personal or commercial lending needs. Paul also provides a comprehensive financial consultancy to business owners on commercial, equipment and invoice finance.

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