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How to buy a home in Canberra with no deposit

If you dream of owning a home in Canberra but don’t have a deposit saved, you’re not alone. Many first home buyers believe they need a 20% deposit before they can get started – but that’s not always the case.

There are genuine pathways that can help you buy a home in Canberra with no deposit saved. These include ACT government housing schemes and alternative lending options designed specifically to help first home buyers purchase with no deposit. 

Government schemes for first home buyers in the ACT (no deposit/low deposit)

First Home Guarantee (FHG)

This federal government scheme helps eligible first home buyers in the ACT purchase with as little as a 5% deposit. The government guarantees up to 15% of the loan, so you don’t need to pay lenders' mortgage insurance (LMI).

To qualify, your income must fall within set limits, and the property must be below the ACT’s price cap. While not a true no deposit home loan in Canberra, this scheme helps make entering the market more achievable.

Family Home Guarantee

This scheme supports single parents. Eligible applicants can buy a home with just a 2% deposit; the government guarantees the rest. 

ACT government-specific initiatives

The ACT government offers stamp duty concessions for eligible first home buyers. If you’re buying a property valued at $800,000 or less, you may qualify for a full exemption, depending on your household income and other criteria.

For full details, visit the ACT Revenue Office or speak to a Loan Market mortgage broker in Canberra.

Other ways to buy with a low/no deposit

Guarantor loans

A family member can use their property as security for your loan, allowing you to avoid a cash deposit and possibly LMI. It’s a useful option for buyers with strong income but low savings.

However, there’s a risk involved – if you can’t repay the loan, the guarantor’s property may be used to cover the shortfall.

Parental gift

Some first home buyers receive a financial gift from their parents to help cover the deposit. Lenders usually require a signed declaration confirming it’s a genuine gift, not a loan – otherwise, it could reduce your borrowing power.

It’s important to consider the legal implications. If the gift isn’t properly documented, disputes can arise later, particularly in cases of family breakdown or inheritance. Legal advice helps protect both parties and ensures expectations are clear. A broker can also explain how a gift may affect your overall affordability and loan options.

Personal loan for deposit

Most lenders won’t accept personal loans for deposits, as they increase your debt and reduce borrowing power. This option is rarely recommended.

Understanding the costs beyond the deposit

Even if you qualify for a low or no deposit loan in Canberra, there are still upfront costs to consider. These can impact your borrowing capacity and your settlement timeline.

Stamp duty in the ACT

Stamp duty is a government tax on property purchases, calculated based on the property’s value. It can add tens of thousands of dollars to your upfront costs. 

In the ACT, first home buyers may be eligible for a full or partial waiver depending on their household income and the value of the property. A broker can help you check your eligibility and estimate the amount.

Lenders mortgage insurance (LMI)

LMI is a one-off insurance premium that protects the lender (not you) if you default on your loan. It’s usually required if your deposit is less than 20%. Depending on your loan size and deposit, it can significantly increase your borrowing costs. Some government schemes, like the First Home Guarantee, can help you avoid paying LMI altogether.

Legal fees

You’ll need a solicitor or conveyancer to manage contracts and settlement. Costs vary, so it’s best to get a quote early.

Building and pest inspections

These are optional but recommended, especially for older homes. They can uncover hidden issues before you commit to buying.

Loan and application fees

Lenders may charge fees for processing your application or setting up the loan. A broker can help you compare and find competitive options.

Planning for these costs from the start can make your buying journey smoother – and a broker can guide you through what to expect.

Can any banks still take a 5% deposit without a guarantee?

Some lenders might allow it, but you’ll likely need to pay LMI and meet stricter criteria. In most cases, accessing government schemes in the ACT with no deposit is the safer and more affordable path.

FAQs about no deposit home buying in Canberra

Does the First Home Owners Grant count towards the deposit?

Generally, yes. But lenders may have rules around timing and usage.

Is there anything for non-new, already built first homes in the ACT?

Yes. The FHG applies to both new and existing properties.

What is the average deposit needed for a house in Canberra?

Canberra’s median property price in April was $864,343, according to Cotality. A 20% deposit based on this amount is $172,869. But a 5% deposit is a much lower $43,217. 

How much can I borrow in Canberra with no deposit?

It depends on income, expenses and whether you qualify for a scheme. A Loan Market broker can help assess your borrowing power.

Canberra homeownership can be a reality

Buying a home in Canberra without a deposit might seem out of reach, but there are genuine solutions available. Whether through a low deposit option or no deposit home loan in Canberra, a government-backed scheme or family support, many first home buyers in ACT with no deposit are finding a way forward.

Navigating the path to homeownership in Canberra with a low or no deposit can feel daunting, but you don't have to do it alone. Talk with a Loan Market broker today to understand which government schemes and lending options are right for your unique situation. We're here to help you take the next step towards your dream home.

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Published: 2/6/2025
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