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First Home Buyers' Guide to Building in Canberra

If you’re a first home buyer building in Canberra and unsure about where to begin, this guide will walk you through each step of the process. 

Building your first home in Canberra is an exciting experience. Unlike buying an established home, building a new home in Canberra allows you to tailor your home to your lifestyle, preferences and budget. 

But, understandably, first home buyers can find the process overwhelming. In this guide, we simplify the process, clearly outlining the steps required to build a new home in Canberra.

Understanding Canberra's property market for new builds

The ACT Government’s Indicative Land Release Program (ILRP) aims to release land to build and deliver 21,422 homes in Canberra by 2029. 

Some of the suburbs earmarked for new builds in Canberra include:

  • Molonglo Valley, including Denman Prospect, Whitlam, Wright and Coombs.
  • Gungahlin District, including Taylor, Throsby, Jacka and Kenny.
  • Ginninderry Development, including Macnamara and Strathnairn.

These areas are Canberra’s main future growth corridors in greenfield locations, unlocking a significant supply of Canberra land for sale to first home buyers over the next four years.

First home buyer grants and schemes for new builds in the ACT

It can be challenging for first home buyers to break into the Canberra property market. To make building a home more achievable, there are some state and federal first-home buyer grants for building in the ACT. These are the

  • Home Buyer Concession Scheme
  • First Home Guarantee Scheme

The Home Buyer Concession scheme 

The Home Buyer Concession Scheme (HBCS) has been in place since 1 July 2019, helping eligible buyers purchase residential property, including vacant land, new builds and established homes.

HBCS offers full or partial stamp duty exemptions for properties valued up to $1,455,000. To qualify, you must meet income thresholds and not have owned property in the past five years.

The First Home Guarantee (FHG) scheme 

FHG helps eligible first home buyers purchase a property with as little as a 5% deposit, without needing to pay lender’s mortgage insurance.

The government guarantees up to 15% of the property’s value, allowing buyers to avoid the usual 20% deposit requirement.

To qualify, the property must be priced at $750,000 or less, and income limits apply.

The building process: a step-by-step guide for first home buyers

Finding land

Securing the right block of land isn’t just about size or price. It’s also about the surrounding area, infrastructure and land topography. Steep slopes, for example, can significantly increase your construction costs due to additional excavation and site preparation work. 

In Canberra, first-home buyers can explore land options through listings provided by the ACT Government’s Suburban Land Agency, real estate listing platforms and smaller local agents. 

When reviewing potential sites, consider factors such as zoning regulations, easements and covenants. Covenants are restrictions placed on what or how you may build. For example, specific building materials, building height, or architectural design that fits the standard or aesthetics of the neighbourhood. 

Choosing a builder

When reviewing builders’ credentials, check that they have the following: 

When you've found a potential builder, carefully review the building contract, paying close attention to inclusions, exclusions and all fine print. You should also clarify whether you’re entering into a fixed-price or cost-plus contract, as this can significantly impact costs.

Financing your new build

To finance building a new home Canberra, you’ll need a construction loan. Construction loans work differently from standard home loans. You won’t receive the full loan upfront. Instead, funds are released at different stages of your build as it progresses.

Loan Market Canberra can guide you through this process, helping you negotiate loan terms and clearly outlining the conditions and timeline of each drawdown. 

To determine your borrowing capacity, use Loan Market’s "how much can I borrow?" tool. Having a clear budget and pre-approved finance will help you confidently manage your building project and avoid construction setbacks due to financing delays.

Hidden costs you should budget for

When building your first home in Canberra, there are other expenses that may come up along the way. These include costs for:

  • Site excavation and preparation. If your block has challenging soil or topography, site preparation becomes more costly.  
  • Utility connections for water, electricity and gas.
  • Council approvals, planning permits, and certification fees.
  • Fencing, driveways and landscaping are usually not included in the base price.

It’s advisable to include a financial buffer of at least 10-15% to cover these and any other unexpected expenses that may arise. 

FAQs about building your first home in Canberra

Do I need a big deposit to build in Canberra as a first home buyer?

Most lenders require a 10-20% deposit for a construction loan. However, by taking advantage of the FHG Scheme, you may be able to secure a loan with a deposit of just 5%. It’s worth speaking to a mortgage broker to explore your options.

How long does it typically take to build a house in Canberra?

Building a house in Canberra generally takes between six and twelve months for a standard single dwelling. The timeframe depends on factors such as house size, design complexity, weather delays, city approval processes, and supply chain delays, particularly for imported materials. Custom homes or larger builds may take longer.

Can I get a grant for an already built first home in Canberra?

The Home Buyer Concession Scheme and the First Home Guarantee Scheme apply to both new builds and established homes.

What are the differences between fixed-price and cost-plus building contracts?

In a fixed-price contract, the total cost is agreed upon upfront and will only change if you vary the scope of work, providing more certainty around costs. In a cost-plus contract, you pay the actual cost of labour and materials plus a builder's margin, which can be more flexible but makes final costs harder to predict.

Your Canberra building journey starts here

Ready to take the first step towards building your first home in Canberra? Speak to a local Loan Market mortgage broker today to discuss your options and get expert guidance on grants, financing and the building process. We're here to help make your building journey as smooth as possible.

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Published: 25/6/2025
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