Fire Service assistant area commander Darryl Papesch was on site overseeing the training exercise.
He said the house would continue to be burned in sections - with one last burn scheduled to take place around 2pm.
"We will let it burn down to the ground, to ashes, or pretty close to it."
Mr Papesch said the controlled burn provided an invaluable training session that was safer than a real, uncontrolled house fire.
"We have many safety measures in place; it's a big rigmarole."
He said it wasn't uncommon for people to offer their houses to be set alight.
"These opportunities come up more than you think, but to have one in your own town, from your own brigade, that's the first I've ever seen."
It's understood Ms McKay plans to build two new houses on the soon-to-be cleared land.