If you’re a first home buyer in Canberra, the landscape just shifted in a meaningful way. (And if you haven’t spoken to a mortgage broker lately, now is genuinely a great time to do so.)
Let’s start with the big one…
Stamp duty will be abolished for ACT first home buyers from 1 July 2026.
Yep, you read that correctly.
The ACT has just become the first jurisdiction in Australia to abolish stamp duty for all first home buyers. There are no price caps, no income thresholds to qualify. If you buy your first home in Canberra from 1 July 2026 onwards, you won’t pay a dollar in stamp duty.
This is not a small thing. A buyer purchasing around the $850,000 mark (who was previously ineligible for a concession) could save roughly $10,000 in stamp duty. For higher price points, the savings become even more significant.
For many first home buyers, this stamp duty change will allow buyers to get into the market much sooner, because you’ll be able to purchase with a smaller deposit.
What else is available to you as a first home buyer?
The 5% Deposit Home Buyer Scheme is still available for ACT purchases up to $1million
The Federal Government’s 5% Deposit Home Buyer scheme allows eligible first home buyers to purchase a property up to $1 million in Canberra with just a 5% deposit, without needing to pay Lenders Mortgage Insurance (LMI). This can also provide a real $ saving, as LMI can run into tens of thousands of dollars (depending on the purchase price).
The 5% Deposit Scheme does have eligibility requirements, so it’s worth checking whether it applies to your situation. If you’re eligible, it can significantly change what’s possible for you right now. Especially when this scheme is combined with a full waiver of stamp duty.
“Great, I’ll go buy myself a house now.”
Hang on a second, not so fast!
Despite the attractive incentives available to first home buyers, securing finance for a new home purchase is a little more complex than that….
Rates have increased three times this year (February, March, and May 2026) and living expenses have also increased. Not only are you likely to have experienced increases in your own expenditure (as evidenced by bank statements), the Household Expenditure Measure (HEM) index lenders use in their servicing calculators has also formally increased. These factors directly affect how much you can borrow, and therefore what type of property you can ultimately buy.
Borrowing capacity differs between lenders. And different lenders can offer you different rates, depending on how eager they are for new lending that week.
It’s never been more beneficial for you to buy your first home with the help of a local team of mortgage brokers, a team who understand the ins and outs of the current market and can help ensure you take advantage of the opportunities available to you.
We work with Canberra first home buyers every week. It’s what we’ve done each and every day for more than 25 years now. We can give you a straight picture of where you currently stand, and what’s possible for you right now. Reach out to team here to get started.
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