The Dos and Don'ts of a First Home Buying Checklist

Before you start shopping around for the perfect beachside property in Halls Head, you need to know what pieces of your financial life will be examined and what can actually wait until later.

The biggest mistake first home buyers make is preparing everything in isolation and then discovering halfway through that a lender wants something different, or that a grant they planned to use doesn't apply to the property they've chosen. The checklist that matters isn't the one that covers every possible scenario. It's the one that gets you from decision to settlement without backtracking.

Check Your Borrowing Capacity Before You Fall in Love With a Property

Your borrowing capacity determines how much a lender will approve you for based on your income, expenses, debts, and deposit. This figure should be locked in before you start attending open homes or making offers.

Consider a couple in Halls Head both working full-time with a combined income around $120,000. They assume they can borrow enough to cover the median house price in the area, but after a broker runs their numbers, their actual borrowing limit sits lower due to a car loan and regular childcare costs. They adjust their search to townhouses and older units closer to the Halls Head Foreshore, and within three weeks they're under contract on a property they can comfortably afford. That only happened because they knew their limit before they started looking.

Checking your capacity early also means you can take steps to improve it if needed, whether that's paying down a personal loan, adjusting your expenses, or waiting another few months to increase your savings.

Do Confirm Which Grants and Concessions Apply to the Property Type You're Buying

Not every property qualifies for every grant. Most cash grants in Western Australia apply only to new homes, and stamp duty concessions differ depending on whether you're buying an established home, a house and land package, or vacant land.

Western Australia offers a First Home Owner Grant for new homes valued up to $800,000, plus stamp duty exemptions on pre-construction purchases up to the same threshold. If you're buying an established property in Halls Head, the grant doesn't apply, but you may still qualify for other state concessions or the federal First Home Guarantee, which lets eligible buyers purchase with a 5% deposit and no Lenders Mortgage Insurance.

In a scenario where a buyer assumes they'll receive the full WA grant on a renovated 1980s home near the beach, they'll be disappointed. The grant is for new builds only. That's the kind of detail that changes your budget and your shortlist, so confirm it early with a broker who knows how each scheme stacks with the others.

Don't Wait Until You Find a Property to Get Pre-Approval

Pre-approval tells you exactly how much a lender will lend you and locks in that amount for a set period, usually three to six months. It also signals to sellers and agents that you're a serious buyer with finance ready to go.

Without it, you're making offers on hope. Halls Head has a mix of retirees, young families, and investors, and in a competitive market, sellers will always favour a buyer who can show pre-approval over one who says they'll sort it out later.

Pre-approval also uncovers any issues with your application before you're under time pressure. If a lender wants more evidence of savings, or if there's a discrepancy in your employment history, you have time to fix it without holding up a contract.

Do Gather Your Genuine Savings Evidence Early

Most lenders require you to have held at least 5% of the purchase price in genuine savings for a minimum of three months. Genuine savings means money you've accumulated over time, not a lump sum transferred from a family member last week.

Acceptable evidence includes bank statements showing regular deposits, term deposits, or savings withdrawn from your superannuation under the First Home Super Saver Scheme. The FHSS lets you contribute up to $15,000 per year and withdraw up to $50,000 total, taxed at a concessional rate, which can make a material difference to your deposit size.

If you're relying on a gift from family, some lenders will accept it, but they'll want a signed declaration that the money is a gift and not a loan. Others will still require a portion of genuine savings on top of the gift. Knowing which lenders accept what will shape how you structure your deposit.

Don't Assume Your Credit File Is Fine Just Because You Pay Everything on Time

Your credit file might contain defaults you didn't know existed, or accounts you thought were closed but are still listed as open. Even a small unpaid bill from a gym membership or phone plan can show up as a black mark.

Before you apply for a home loan, pull your credit report from one of the major agencies and check it line by line. If something looks wrong, dispute it. If there's a genuine default, get it paid and ask for a letter of clearance. Lenders will see the same report, and they'll ask you to explain anything that doesn't look right.

Your credit score also matters. Some lenders reserve their lowest interest rates and best loan features for borrowers with strong credit histories. If your score sits lower than expected, a broker can match you with lenders who are more flexible or help you take steps to improve it before applying.

Do Understand the Difference Between Fixed and Variable Rates Before You Lock Anything In

A fixed rate gives you certainty for a set period, usually one to five years, while a variable rate moves with the market and usually comes with features like an offset account or redraw.

If you fix your rate and then need to refinance or sell before the fixed period ends, you may face break costs. If you go variable and rates rise, your repayments will increase. Neither option is automatically superior. It depends on your tolerance for risk, how long you plan to hold the property, and whether you value flexibility or predictability.

Many borrowers in Halls Head split their loan between fixed and variable, locking in part of the rate for stability while keeping access to an offset account on the remainder. That setup works well if you're likely to receive irregular income, bonuses, or lump sums that you want to park in offset to reduce interest.

Don't Forget to Budget for Costs Beyond the Deposit

Your deposit is just one part of what you'll need at settlement. You'll also pay for conveyancing, building and pest inspections, loan application fees, and potentially Lenders Mortgage Insurance if your deposit is below 20% and you're not using the First Home Guarantee.

In Western Australia, eligible first home buyers may pay reduced or zero stamp duty depending on the property value and type, but you should still confirm the exact amount with your conveyancer before signing anything. Even a small miscalculation can leave you scrambling for extra funds at settlement.

Other costs include removalists, connection fees for utilities, and council rates from settlement day onward. If you're buying a strata property near the Halls Head Marina, you'll also have quarterly strata fees. Factor all of this into your budget so there are no surprises when the invoice arrives.

Do Ask About Offset Accounts and Redraw Before You Choose a Loan

An offset account is a transaction account linked to your home loan. Every dollar in the offset reduces the balance on which you're charged interest, which can cut years off your loan term and save tens of thousands in interest over time.

Redraw lets you access any extra repayments you've made above the minimum, but it's not as flexible as offset. Some lenders charge redraw fees, limit how much you can withdraw, or delay access by several days.

If you're the kind of buyer who will keep a buffer in your account or regularly deposit extra income, an offset account will serve you much longer than redraw. If the loan you're considering doesn't offer offset, ask your broker to compare it against one that does and run the numbers over five or ten years.

Don't Apply for New Credit in the Months Before You Lodge Your Application

Every credit application leaves a footprint on your file, and multiple applications in a short window can make lenders nervous. If you're planning to buy a car, open a new credit card, or sign up for buy-now-pay-later, do it well before you start the home loan application process or wait until after settlement.

Lenders assess your borrowing capacity based on your commitments at the time of application. A new car loan or credit card limit will reduce how much they're willing to lend, even if you don't plan to use the full limit. If that reduction drops you below the amount you need for the property you want, you'll either need to pay out the debt or walk away from the purchase.

If you've already applied for credit recently, let your broker know. They can explain it to the lender upfront rather than having it discovered during the assessment and treated as a red flag.

Call one of our team or book an appointment at a time that works for you. We'll walk through your situation, confirm which grants and schemes apply, and make sure your checklist is built around the property and loan structure that actually suits your circumstances.

Frequently Asked Questions