Smart Ways to Approach Your First Home Checklist

What a First Home Buyer Checklist Actually Covers

A first home buyer checklist isn't a generic to-do list you print and ignore. It's a working document that keeps your deposit, approval, and settlement tasks in order so nothing falls through at the last minute. For buyers in Hillarys, where beachside properties and newer estates both attract first-timers, the checklist needs to reflect WA-specific grants, federal schemes, and the practicalities of getting finance locked in before you make an offer.

You're looking at three main stages: working out what you can borrow and what help is available, getting pre-approval sorted, and then managing the actual purchase and settlement process. Each stage has its own set of tasks, and missing one can mean delays, higher costs, or losing the property you want.

Getting Your Borrowing Capacity and Budget Sorted

Your borrowing capacity depends on your income, existing debts, living expenses, and the deposit you've saved. Lenders assess this before they tell you how much they'll lend, so it's worth running the numbers early rather than falling for a property you can't finance.

Consider a buyer who's been renting in Hillarys and has saved a 10% deposit. They earn a combined household income that qualifies them for the expanded First Home Guarantee, which means they can borrow with a smaller deposit and avoid paying Lenders Mortgage Insurance. Once they know their borrowing limit, they can focus their search on properties within that range and avoid wasting time on homes that don't fit their budget.

In WA, the First Home Owner Grant has been increased, with the property cap now sitting at $800,000 for new builds. Stamp duty concessions apply to pre-construction dwellings up to $800,000 with no duty payable, and a 50% concession on homes up to $900,000. If you're buying an established property in one of the older pockets near Hillarys Marina or along Flinders Avenue, the duty concession won't apply, so you need to factor full stamp duty into your upfront costs.

Documents You'll Need When You Apply for a Home Loan

Lenders want proof of income, savings history, identification, and details of any debts or liabilities. For most employed buyers, that means recent payslips, tax returns, and bank statements showing where your deposit came from. If part of your deposit is a gift, lenders will ask for a signed statutory declaration from the person who gave it to you, confirming it's not a loan that needs to be repaid.

If you've been using the First Home Super Saver Scheme to build your deposit, you'll also need to show the ATO release documentation. The scheme lets you contribute up to $15,000 per year and withdraw a total of up to $50,000, taxed at a concessional rate when you pull it out. It's one of the more useful federal initiatives for first-timers, but you need to apply for the release through your super fund well before settlement.

Pre-Approval and Why It Matters Before You Make an Offer

Pre-approval gives you conditional approval from a lender before you find a property. It's not a binding commitment, but it shows real estate agents and sellers that you're serious and have the financial backing to proceed. In Hillarys, where properties close to the beach or near Westfield Whitford City can move quickly, having pre-approval in place means you can make an offer without the risk of losing the property while you wait for finance.

Pre-approval is usually valid for three to six months, depending on the lender. It's based on the documents you provide at the time, so if your income or circumstances change, the lender may reassess. The application process involves a credit check, so it's worth making sure your credit file is clean before you apply. Small debts like buy-now-pay-later accounts or overdue phone bills can affect your borrowing capacity more than you'd expect.

How WA First Home Buyer Grants Stack with Federal Schemes

WA's increased First Home Owner Grant now applies to new homes up to $800,000, and you can combine this with the federal First Home Guarantee if you're buying with a deposit of 5% to 10%. The Guarantee covers the lender's risk, so you don't pay Lenders Mortgage Insurance, which can save several thousand dollars upfront.

If you're buying a house and land package in one of the newer developments around Whitfords or closer to the Mitchell Freeway, you could access both the WA grant and the stamp duty exemption on pre-construction properties. That combination can reduce your upfront costs significantly and make the purchase more realistic on a first home buyer budget.

The catch is that most WA grants apply to new builds only. If you're buying an established home near the Hillarys Boat Harbour or in one of the older streets near the beach, you won't qualify for the grant, and you'll need to budget for full stamp duty unless you meet one of the narrower concession criteria.

Choosing Between Fixed and Variable Interest Rates

When you're filling out your home loan application, you'll need to decide whether to lock in a fixed interest rate or stick with a variable rate that moves with the market. A fixed rate gives you certainty for a set period, usually one to five years, which can make budgeting simpler when you're adjusting to mortgage repayments for the first time.

A variable rate gives you more flexibility. Most variable loans come with an offset account, which lets you park your savings in a linked transaction account and reduce the interest you pay on the loan balance. If you're disciplined with your cash flow, an offset account can save you more over time than a slightly lower fixed rate.

Some buyers split their loan, fixing part of it for stability and leaving the rest variable for flexibility and offset access. It's not the right fit for everyone, but it's worth discussing with your broker if you want a bit of both.

What Happens Between Offer Acceptance and Settlement

Once your offer is accepted, the lender will order a property valuation to confirm the purchase price aligns with market value. If the valuation comes in lower than the price you've agreed to pay, the lender may reduce the amount they're willing to lend, and you'll need to cover the gap with a larger deposit or renegotiate the sale.

You'll also need to arrange building and pest inspections, organise settlement insurance, and confirm the final loan documents with your lender. In WA, settlement periods are usually 30 to 60 days, which gives you time to get everything in order, but it can feel tight if you're waiting on grant approvals or final loan documents.

If you're using a government scheme like the First Home Guarantee, your lender will need to confirm your eligibility and lodge the application before settlement. Any delays in that process can push back your settlement date, so it's worth staying on top of what's been submitted and what's still pending.

Knowing When to Lock in Your Interest Rate

Most lenders let you lock in your interest rate once your loan is formally approved, which is usually after the property valuation comes back. The rate lock period is typically 90 days, so if settlement is more than three months away, you may need to extend it or accept whatever the rate is at settlement.

If rates are moving up, locking in early can protect you from paying more. If rates are stable or falling, you might prefer to wait and see. There's no universal answer, but it's a decision you'll need to make before settlement, and your broker can talk you through what's happening in the market at the time.

Call one of our team or book an appointment at a time that works for you. We'll walk through your checklist, make sure you're accessing the grants and schemes that apply, and get your first home loan application moving without the back-and-forth that slows things down.

Frequently Asked Questions