What Are the Steps to Buy Your First Home in the ACT?

Buying your first home in the ACT starts with understanding what you can borrow and what you'll actually pay.

The Australian Capital Territory removed the property value cap and income threshold for the Home Buyer Concession Scheme from 1 July 2026. Eligible buyers are now fully exempt from conveyance duty regardless of the value of the property purchased and regardless of household income. You need to own and occupy the property as your principal place of residence continuously for at least one year commencing within 12 months of settlement.

How Much Deposit Do You Need?

The Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase with a 5% deposit. Housing Australia guarantees the difference between your deposit and 20% of the property value, which means you don't pay Lenders Mortgage Insurance. In the Australian Capital Territory, the property price cap is $1,000,000. Both the purchase price and the lender's assessed value must sit at or below that cap.

If you're buying in Belconnen, Gungahlin, or Tuggeranong and the property falls within the cap, you can access the scheme through a participating lender. The scheme has no income limits and no annual place caps. You apply through your lender, not directly through Housing Australia. Fixed, variable, and split loan structures may be available depending on which lender you use.

Consider a buyer purchasing a house in Gungahlin. They find a property within the $1,000,000 cap and apply through a participating lender under the 5% deposit scheme. They provide a 5% deposit, the scheme covers the gap to 20%, and they avoid LMI. The duty exemption under the ACT Home Buyer Concession applies regardless of the purchase price, so no conveyance duty is payable. The buyer moves in within 12 months and commits to living there for at least one year.

What About Higher Deposits?

Some buyers prefer a 10% or 20% deposit to reduce the loan amount or access a wider panel of lenders. A 10% deposit still attracts LMI unless you meet eligibility for an LMI waiver through your profession or lender. A 20% deposit removes LMI entirely and may unlock rate discounts. In our experience, buyers who have saved a larger deposit often want to preserve some cash for renovations or offset funds rather than sink everything into the purchase, so the structure you choose depends on what you're planning to do with the property after settlement.

Can You Use Gifted Funds or the First Home Super Saver Scheme?

Most lenders accept gifted deposits from immediate family members, but the gift must be declared and accompanied by a statutory declaration confirming it's not a loan. The First Home Super Saver Scheme allows first home buyers to make voluntary concessional and non-concessional contributions into their superannuation fund and apply to release eligible amounts toward a home deposit. Up to $15,000 of personal contributions from any one financial year can be released, with a total cap of $50,000. You need to obtain a determination from the ATO before signing a purchase contract, so factor that timeline into your planning.

How Does Pre-Approval Work?

Pre-approval gives you a conditional commitment from a lender before you make an offer. It's not a guarantee, but it confirms your borrowing capacity and signals to vendors that you're a credible buyer. You'll need to provide proof of income, savings history, identification, and a statement of liabilities. The lender assesses your application and issues a pre-approval valid for three to six months, depending on the lender.

In a scenario like this: a buyer working in the public service in Canberra applies for pre-approval with payslips, tax returns, and bank statements showing regular savings. The lender confirms capacity and issues pre-approval. The buyer then searches for properties within their approved range, makes an offer, and moves to full approval once a contract is signed. The property is valued, final loan documents are signed, and settlement occurs within the agreed timeframe.

What Loan Features Should You Consider?

A variable rate loan with an offset account lets you park savings against the loan balance and reduce interest without losing access to your funds. A fixed rate locks your rate for a set term, usually one to five years, which can help with budgeting but limits flexibility if you want to make extra repayments. A split loan combines both: part fixed, part variable. Redraw facilities allow you to access extra repayments you've made, though some lenders charge fees or impose restrictions.

Offset accounts are particularly useful if you're planning to hold the property long term and want to retain liquidity. Redraw is less flexible because the funds technically belong to the lender once paid, and access can be restricted if your circumstances change.

Does the ACT Offer a First Home Owner Grant?

The ACT closed its First Home Owner Grant on 1 July 2019 and replaced it with the Home Buyer Concession Scheme. No cash grant is available, but the duty exemption is more valuable than a $10,000 or $15,000 grant in most cases, particularly on higher-priced properties. The removal of the value cap and income threshold from 1 July 2026 means more buyers qualify and the concession applies across the full range of residential property in the territory.

Can You Combine the 5% Deposit Scheme with the Duty Concession?

State and territory grants and stamp duty concessions can generally be used alongside the Australian Government 5% Deposit Scheme. The ACT duty exemption and the federal deposit scheme are separate programs administered by different levels of government, so you can access both if you meet the eligibility criteria for each. Confirm your eligibility with your broker and conveyancer before exchanging contracts.

What Happens After You Exchange Contracts?

Once contracts are exchanged, the lender orders a property valuation to confirm the purchase price aligns with market value. You'll receive a formal loan offer, sign loan documents, and arrange settlement through your conveyancer or solicitor. Settlement usually occurs four to six weeks after exchange, depending on the terms agreed in the contract. On settlement day, funds are transferred, you receive the keys, and the property title is registered in your name.

You need to move into the property within 12 months of settlement and live there continuously for at least one year to satisfy the residency requirement under the Home Buyer Concession Scheme. If you don't meet this requirement, the duty exemption can be clawed back.

Should You Consider Rentvesting Instead?

Some buyers in Canberra choose to rent in the suburbs they want to live in and buy an investment property elsewhere in the ACT or in another state where property is more affordable. Rentvesting allows you to enter the market sooner and build equity while maintaining your preferred lifestyle, but you don't receive the duty concession or access to the 5% deposit scheme because those are reserved for owner-occupiers. You also forgo the capital gains tax exemption on your principal place of residence. Whether rentvesting suits you depends on your timeline, income, and whether you're willing to remain a tenant while owning property elsewhere.

If your priority is living in a specific part of Canberra and you can afford to buy there under the current price caps and concessions, purchasing as an owner-occupier is usually the more tax-effective path. If affordability is the barrier, rentvesting gives you access to the property market without waiting.

Call one of our team or book an appointment at a time that works for you. We'll assess your situation, compare home loan options, and structure a loan that fits your deposit, income, and timeline. If you're ready to move forward with getting pre-approval, we'll walk you through the documentation and lender panel so you can make offers with confidence.

Frequently Asked Questions