First home buyers in the Australian Capital Territory should assess their deposit pathway and scheme eligibility before they commit to a purchase contract.
This article sets out the principal challenges faced by first home buyers in Canberra. It also describes the concessions and schemes that apply under ACT and Australian Government rules, as at November 2026. This article is general information only and does not constitute personal financial, legal or tax advice.
What Is the Biggest Challenge for First Home Buyers in Canberra?
A significant challenge for many first home buyers is assembling a deposit and meeting the costs that sit outside the loan. These costs include legal and conveyancing fees, inspection and valuation fees, mortgage registration fees and building insurance.
A buyer should prepare a first home buyer budget that separates the deposit from these acquisition costs. A lender will assess borrowing capacity against income, liabilities and living expenses. A review of borrowing capacity before property searches commence reduces the risk of bidding above an approved limit.
How Does the ACT Home Buyer Concession Scheme Work?
For transaction dates from 1 July 2026, no conveyance duty is payable on a home or vacant residential land for eligible buyers under the ACT Home Buyer Concession Scheme. The property price cap and income threshold have been removed.
The scheme covers new homes, established homes and vacant residential land. It applies to first home buyers and to people who have not owned property in the last five years. All buyers must be individuals aged 18 or over, and companies, trustees and partnerships cannot claim. At least one buyer must own and live in the home as a principal place of residence continuously for at least one year, starting within one year of settlement or the certificate of occupancy and use.
Buyers and their domestic partners must not have held an interest in any property in the ACT, elsewhere in Australia or overseas in the five years before the transaction date. Limited exemptions apply. Claims are self-assessed and records must be kept for five years. The ACT Revenue Office confirms the application of these rules in individual cases.
The ACT first home owner grant ceased on 1 July 2019, so no ACT grant is available.
What Deposit Options Exist for Canberra First Home Buyers?
A buyer may apply for the Australian Government 5% Deposit Scheme, which allows eligible first home buyers to purchase with a 5% deposit. Eligible single parents or legal guardians may purchase with a 2% deposit.
Housing Australia backs the lender for the part of the loan between the deposit and 20% of the property value, so LMI is not payable. There are no income caps. In the ACT the price cap is $1,000,000 for all areas. Both the purchase price and the home's value as assessed by the participating lender must be at or below that cap.
The principal trade-off is that the backing protects the lender and not the buyer. The buyer remains responsible for all loan costs and repayments. The buyer must move in within six months of settlement and continue living there while the backing is active, or the lender may require LMI to be paid. Applications are made only through a participating lender. A broker can assist in comparing home loan options across that panel.
Can a Buyer Use Super for a Deposit?
Yes. The First Home Super Saver scheme allows eligible voluntary super contributions to be released toward a first home deposit. The scheme is administered by the Australian Taxation Office (ATO).
Contributions are limited to $15,000 in any financial year and $50,000 in total from 1 July 2017. The ATO states that the maximum release amount is 100% of eligible non-concessional contributions plus 85% of eligible concessional contributions plus associated earnings. A determination must be requested before ownership of any real property transfers to the buyer. Released concessional amounts are assessable income and tax is withheld on release. If the buyer does not enter a contract or recontribute within the time limits and notify the ATO, additional FHSS tax of 20% of the assessable released amount applies. Buyers should obtain advice from their accountant before making contributions.
What Does a Deposit Scheme Look Like in Practice?
A buyer who meets the scheme's eligibility criteria, and who is approved for a loan by a participating lender after its serviceability assessment, can buy with a 5% deposit and without LMI. The contract price and the lender's assessed value must both be at or below the ACT cap of $1,000,000.
Consider a couple purchasing an established home within that cap. They hold a 5% deposit and have obtained conditional approval from a participating lender. The lender assesses the home's value, which may differ from the contract price. The couple confirm that the contract price and the assessed value are both at or below $1,000,000.
For illustration only, a loan of $500,000 at an example rate of 6.75% p.a. over 30 years requires monthly principal and interest repayments of approximately $3,243. This figure is illustrative and is not a rate offer. A lender's actual rate will vary with the lender and the buyer's circumstances. The couple use the repayment figure to test their budget before signing. The outcome is a purchase made with a deposit buffer retained for acquisition costs and a repayment level confirmed against income. The trade-off is that a smaller deposit produces a larger loan and greater total interest over time.
Why Is Pre-Approval Important for First Home Buyers?
Pre-approval gives a buyer an indicative borrowing limit from a lender before an offer is made. It is conditional and does not oblige the lender to lend.
Some schemes make approval a formal requirement. Under Help to Buy, a buyer must obtain home loan approval from a participating lender before Housing Australia approves the contribution. Housing Australia advises that a buyer should not place a deposit or bid at auction without conditional approval. A buyer who intends to use a scheme should confirm lender participation before applying. Applications for Help to Buy cannot be made directly to Housing Australia.
Can Help to Buy Be Used in the ACT?
Help to Buy is a shared equity scheme operating in all States and Territories, and the ACT price cap is $1,000,000. The Australian Government contributes between 5% and 30% of the purchase price of an existing home, and between 5% and 40% for a newly built home.
For the period from 1 July 2026 to 30 June 2027, the income threshold is $103,000 for an individual who is not a single parent and $165,000 for joint applicants or a single parent. Housing Australia has no authority to override this requirement. The buyer must contribute a deposit of at least 2% from savings. A buyer who can purchase using savings, assets and borrowing capacity alone is not eligible.
The principal obligations include living in the home, maintaining insurance and notifying Housing Australia before selling, renovating or refinancing. The Government's share moves with the property's market value. Help to Buy cannot be combined with other shared equity or loan backing schemes, but ACT concessions and the First Home Super Saver scheme may still be used.
What Should a First Home Buyer Compare Before Applying?
A buyer should compare the loan features and the interest rate structure, in addition to the deposit pathway. A variable interest rate may change over the loan term. A fixed interest rate offers certainty for a set period but may restrict extra repayments. An offset account may reduce interest charged, although some loans with this feature carry higher fees or rates.
As a general guide, features available to buyers using government schemes vary by lender, and Housing Australia's published materials do not state which loan features apply under the 5% Deposit Scheme. Buyers should confirm features directly with the lender. The first home buyers page outlines how OAUM Securities supports this process.
How Is a First Home Loan Application Prepared?
A strong application presents stable income, documented savings and clear liabilities. A broker can compare these items against lender policy before submission, which may help identify issues earlier. Approval remains at the lender's discretion.
Buyers planning to build should also consider construction loans, which operate differently from standard purchase loans.
Call one of our team or book an appointment at a time that works for you, and we will review your deposit pathway, scheme eligibility and borrowing position in a structured assessment.
Frequently Asked Questions
Is stamp duty payable by first home buyers in the ACT?
For transaction dates from 1 July 2026, no conveyance duty is payable on a home or vacant residential land for eligible buyers under the Home Buyer Concession Scheme. The property price cap and income threshold have been removed. Eligibility conditions apply, including a one-year occupancy requirement.
Is there an ACT first home owner grant?
No. The ACT first home owner grant ceased on 1 July 2019. Buyers may still use the Home Buyer Concession Scheme and Australian Government schemes.
What is the price cap for the 5% Deposit Scheme in the ACT?
The price cap is $1,000,000 for all areas of the ACT. Both the purchase price and the lender's assessed value must be at or below the cap.
Can a buyer use Help to Buy and the 5% Deposit Scheme together?
No. Help to Buy participants cannot receive help from other schemes, including loan backing provided by the Australian Government. ACT concessions and the First Home Super Saver scheme can still be used.
