Buying a home in Canberra comes with some upfront costs, but there are now more ways to reduce them than many buyers realise.
If you’ve been searching for the First Home Owner Grant in the ACT, there’s a reason you haven’t found much. The ACT’s traditional First Home Owner Grant is no longer available for property purchases. Instead, eligible buyers may now be able to access stamp duty concessions, purchase with a smaller deposit without paying Lenders Mortgage Insurance (LMI), or take advantage of other government and lender initiatives.
Some of these schemes have also changed significantly in 2026.
So, if you’re planning to buy in Canberra, here are some of the options worth knowing about before deciding how much you need to save.
Eligible Canberra buyers can now pay no stamp duty
One of the biggest upfront costs when buying property is conveyance duty, more commonly known as stamp duty.
From 1 July 2026, the ACT Government made significant changes to its Home Buyer Concession Scheme.
For eligible buyers, there is now:
- no property price cap
- no income threshold
- no stamp duty payable.
That means an eligible buyer purchasing an established home, new home or vacant residential land can pay $0 stamp duty, regardless of the purchase price.
There are still eligibility requirements.
Generally, buyers and their domestic partners must not have owned property within the previous five years. At least one buyer must also live in the property as their principal place of residence for at least 12 months, commencing within one year of settlement.
This means the scheme isn’t necessarily limited to someone buying for the very first time. If you’ve owned property previously but have been out of the market for long enough, it’s worth checking whether you could qualify.
Buying new or off-the-plan? There may be a duty exemption
There are also separate ACT duty exemptions for eligible owner-occupiers purchasing certain new or off-the-plan properties.
From 1 July 2026, eligible buyers purchasing an off-the-plan unit can pay no stamp duty, with the previous property price cap removed.
This can apply to unit-titled properties such as new apartments and townhouses purchased before the units plan has been registered.
There is also a Newly Unit Titled Duty Exemption for eligible buyers purchasing certain newly built, ready-to-occupy unit-titled properties directly from the developer after the units plan has been registered. This exemption also has no property price cap.
Unlike the Home Buyer Concession Scheme, you don’t need to be a first home buyer or have been out of the property market for a set period to qualify for these exemptions.
You do, however, need to meet the relevant eligibility requirements, including living in the property as your home for the required period.
So, if you’re comparing an established property with a new apartment or townhouse, it’s worth understanding the different duty rules that could apply before you buy.
You may not need a 20% deposit
This is probably one of the biggest misconceptions we still hear from first home buyers.
You don’t necessarily need a 20% deposit to buy a home.
For eligible buyers, the Australian Government 5% Deposit Scheme can make it possible to purchase with a minimum 5% deposit without paying Lenders Mortgage Insurance (LMI).
For eligible single parents or single legal guardians with at least one dependent child, the minimum deposit can be as little as 2%.
The scheme changed significantly from October 2025 and now has:
- no income caps
- unlimited places
- no waiting list
- no LMI for eligible purchases.
For the first home buyer pathway, you may be eligible if you’re buying your first home or haven’t owned property or land in Australia within the previous 10 years.
There are still other eligibility requirements, and property price caps apply. In the ACT, the current property price cap is $1 million.
You also still need to qualify for the home loan itself. The government guarantee helps eligible buyers purchase with a smaller deposit, but the participating lender will still assess your income, expenses, debts and overall ability to repay the loan.
What is Lenders Mortgage Insurance (LMI)?
Lenders Mortgage Insurance, or LMI, is insurance that protects the lender, not the borrower.
Under standard lending arrangements, it may apply when you’re borrowing more than 80% of a property’s value.
Depending on the size of the loan and deposit, LMI can be a significant additional cost. That’s why government schemes and lender policies that allow eligible buyers to purchase with a smaller deposit without LMI can make such a difference to the upfront cost of buying.
There may be other ways to buy with a smaller deposit
The Australian Government 5% Deposit Scheme isn’t the only pathway worth exploring.
Some lenders have their own policies that allow certain borrowers to purchase with a smaller deposit without paying LMI.
For example, some lenders offer LMI waivers or reduced deposit requirements to eligible professionals in fields such as medicine, accounting, law, engineering and some allied health professions.
Exactly who qualifies varies between lenders. Your profession, income, qualifications, professional memberships and the amount you’re borrowing can all affect eligibility.
There is also the Australian Government Help to Buy Scheme, which is different from the 5% Deposit Scheme.
Help to Buy is a shared equity scheme. Eligible buyers can purchase with a minimum 2% deposit, with the Australian Government contributing up to 30% of the purchase price of an existing home or up to 40% for a new home.
In return for its contribution, the Australian Government holds a corresponding equity share in the property, which means it shares proportionally in any increase or decrease in the property’s value.
Unlike the 5% Deposit Scheme, Help to Buy has income limits and different eligibility requirements, so it won’t suit everyone.
The important point is that 20% isn’t the only number that matters anymore.
Before deciding you need another few years to save, it’s worth finding out which options may actually be available to you.
The right lender can matter just as much as the scheme
Government assistance is only one part of applying for a home loan.
Every lender has its own policies around things like:
- how much you can borrow
- overtime, bonuses and allowances
- casual and contract employment
- self-employed income
- existing debts
- HECS-HELP
- property types
- apartments and high-density developments.
This can be particularly relevant in Canberra, where we regularly work with public servants, Defence employees, contractors, professionals and self-employed buyers whose income may not always fit neatly into a standard box.
A lender that suits one buyer may not suit another, even when they’re purchasing a similar property at a similar price.
That’s where working with a mortgage broker can help.
At Clarity Home Loans, we have access to more than 55 lenders, allowing us to compare different lending policies and products based on your circumstances.
And we’re a little different from most mortgage brokers.
Most mortgage brokers are paid commissions. Ours aren’t.
Our brokers are salaried. They don’t personally receive a larger commission depending on which lender you choose or how much you borrow, so their recommendation isn’t influenced by what a lender pays.
We’ll look at your income, deposit, borrowing capacity, property plans and any schemes you may qualify for, then narrow down the lenders and loan options that suit your circumstances.
Can you use more than one home buyer scheme?
In some circumstances, yes.
For example, an eligible Canberra first home buyer may qualify for the ACT Home Buyer Concession Scheme and also use the Australian Government 5% Deposit Scheme.
They are separate schemes with separate eligibility criteria, so qualifying for one doesn’t automatically mean you’ll qualify for another.
This is one reason it’s useful to look at your options before you start seriously property hunting. Understanding your deposit, borrowing capacity and likely upfront costs gives you a much clearer idea of the price range you can comfortably work within.
Your Canberra home buyer options at a glance
ACT Home Buyer Concession Scheme
Eligible buyers can pay $0 stamp duty, with no income or property price cap from 1 July 2026.
Off-the-plan Unit Duty Exemption
Eligible owner-occupiers buying certain off-the-plan units can pay $0 stamp duty.
Australian Government 5% Deposit Scheme
Eligible first home buyers can purchase with a minimum 5% deposit and no LMI.
Single Parent / Legal Guardian Pathway
Eligible single parents or legal guardians can purchase with a minimum 2% deposit and no LMI.
Professional LMI waivers
Some eligible professionals may be able to purchase with a smaller deposit without paying LMI, depending on lender policy.
Help to Buy
Eligible buyers may purchase with a minimum 2% deposit with an Australian Government shared equity contribution.
Before you start looking, find out what applies to you
There are more pathways into the Canberra property market than simply saving a 20% deposit and applying to your bank.
The right starting point is understanding what you qualify for.
We can look at your deposit, income, borrowing capacity and property plans, check which schemes and lender policies may apply, and give you a clear idea of your options before you start making offers.
Frequently asked questions
No. The ACT no longer offers the traditional First Home Owner Grant for property purchases.
Instead, eligible buyers may have access to other forms of assistance, including the ACT Home Buyer Concession Scheme and Australian Government home buyer schemes.
No.
A 20% deposit can allow you to avoid LMI under many standard lending arrangements, but it’s not the minimum deposit required for every home loan.
Depending on your circumstances, you may be able to purchase with a considerably smaller deposit through a government scheme or particular lender policy.
It can depend on the participating lender and your circumstances.
Lenders have their own credit policies in addition to the eligibility requirements of the government scheme, so the way your deposit has been accumulated may still be relevant.
Your broker can check both the scheme requirements and the lender’s policy before recommending where to apply.
The ACT Home Buyer Concession Scheme and Australian Government 5% Deposit Scheme have owner-occupier requirements.
If you’re buying an investment property, different lending policies and options apply.
Don’t automatically assume you’re ineligible.
Under the ACT Home Buyer Concession Scheme, previous ownership rules generally look at whether you or your domestic partner have owned property within the previous five years.
For the first home buyer pathway of the Australian Government 5% Deposit Scheme, you may still qualify if you haven’t owned property or land in Australia within the previous 10 years.
Other eligibility requirements apply to both schemes.
Potentially.
The ACT Home Buyer Concession Scheme and Australian Government 5% Deposit Scheme are separate programs, so you’ll need to meet the eligibility requirements for each.
If you qualify for both, you may be able to purchase with a smaller deposit without paying LMI while also paying no ACT conveyance duty.
Want to know what this means for you?
You don’t need to have everything figured out before you talk to us. Start with a cost and obligation-free chat with one of our brokers.
We’ll take the time to understand your situation, answer your questions and help you get a clearer picture of your options and what to do next.
