21 tips for Canberra first-home buyers: making your dream home a reality
June 16, 2025
Buying your first-home in Canberra is an exciting journey. It's a big decision that takes careful planning and is made easier with some expert guidance. The Canberra property market has its own unique features, and 2025 is no different. With property prices changing and government schemes evolving, staying well informed is key.
This is where a mortgage broker can be a useful support as you look for your home. We have a deep understanding of the market, and can offer advice tailored to you. We can help you explore your financial choices to avoid common pitfalls. This keeps you on track to finding your dream home.
Ready to unlock the door to your first property? Keep on reading for the 22 essential tips we've put together especially for you to guide your homeownership experience.
Current property market trends in Canberra
In 2025, Canberra's property market continues to see steady growth, mostly driven by the city’s strong economy and low unemployment rate.
Demand remains high, especially for houses, as families and professionals look for the lifestyle benefits Canberra offers. However, supply is tight, particularly in established suburbs, which has kept prices on an upward path.
Interestingly, there is greater demand for units and apartments. This is especially true for first-home buyers looking for affordability without giving up proximity to the city centre. According to Domain’s latest data, the median house price in Canberra is around $927,000, while units are generally more accessible, with a median price of approximately $562,000. These figures are approximate and can change.
The city's ongoing infrastructure projects, like the expansion of light rail and new commercial developments, are also playing a part in shaping buyer interest and property values.
Popular suburbs for first-home buyers
Some suburbs in Canberra have become popular spots for first-home buyers because they offer a good balance of affordability, amenities and potential for growth.
- Gungahlin: Known for its family friendly atmosphere and generally affordable housing, Gungahlin has a median house price of approximately $880,000. It offers good schools, shopping centres and easy access to the city via the light rail.
- Belconnen: With a median house price around $790,000, Belconnen is a popular choice for young professionals. It offers proximity to the University of Canberra, many parks and the Westfield Belconnen shopping centre.
- Tuggeranong: Offering more space and value for money, Tuggeranong's median house price sits around $800,000. It’s ideal for those looking for a quieter lifestyle with access to nature reserves and larger property sizes.
- Woden Valley: While a bit more expensive, with a median house price of around $1,100,000, Woden Valley appeals to buyers looking for established homes close to the city centre and Canberra Hospital.
These suburbs offer a mix of affordability, convenience, and potential for future growth, making them appealing choices for first-time buyers. The prices mentioned are approximate and can change.
Average property prices in key areas
Understanding the average property prices in different parts of Canberra can help you refine your property search. Here's a snapshot of the current median prices in key areas according to Cotality:
- Inner North (for example Braddon, Dickson): The median house price in these popular suburbs is around $1,200,000. Braddon, in particular, is popular among younger buyers for its trendy cafes and nightlife.
- Inner South (for example Kingston, Narrabundah): Known for its historic charm and proximity to Lake Burley Griffin, the Inner South has higher prices, with median house prices around $1,500,000. Units in Kingston, however, are more accessible, with prices around $600,000.
- Gungahlin: As mentioned earlier, the median house price is approximately $880,000, with units averaging around $500,000.
- Belconnen: The median house price here is about $790,000, while units average around $460,000.
- Tuggeranong: Offers some of the most affordable choices, with houses at a median of $800,000 and units around $480,000.
Please remember that all property prices listed are approximate and subject to market fluctuations.
21 tips for first-home buyers in Canberra
Understanding market trends, popular suburbs and average property prices will give you a solid foundation as you start your property search. Your first-home is also a big investment. To help ensure you make the right property investment decision, and avoid costly mistakes, here are our top tips that will help you move forward in the buying process with confidence.
1. Consult a mortgage broker
A mortgage broker can provide valuable guidance throughout the buying process. They can help you compare loan options, understand different loan terms, and navigate the loan application process.
With access to a wide range of lenders, a mortgage broker can help find competitive interest rates that suit your financial situation.
2. Know your budget
Knowing your budget and understanding your financial circumstances should be a top priority on your home buying journey. Your borrowing power is calculated based on your current income, savings and expenses.
A mortgage broker can help you estimate how much you could borrow and what your loan repayments might look like. Always remember to factor in extra costs such as bank fees, stamp duty, and insurance when you are calculating your budget.
3. Get pre approval
Before you start your property search, it is a good idea to secure pre approval from your lender. This step in the loan application process can give you a clear idea of your borrowing limit. It can also make you a more attractive buyer to sellers.
Keep in mind that pre approval does not guarantee final loan approval, but it is a strong step towards securing your dream home.
4. Research Canberra suburbs
Choosing the right suburb is important. Things like the property cycle, local amenities and future development plans can significantly impact your investment. It is a good idea to decide early on what kind of location would suit your current or target lifestyle.
Whether you are interested in a quieter suburb like Woden Valley or a more vibrant area like Belconnen, research is key to making an informed decision. Talking with a real estate agent or an experienced mortgage broker who knows these areas well can also be helpful.
5. Understand government schemes
As a first-home buyer, it is a good idea to learn about various government schemes available in Canberra, such as the First-Home Guarantee and stamp duty concessions . Eligibility criteria apply.
6. Start saving early
Start saving early for a house deposit. A larger house deposit can increase your borrowing power and potentially reduce your loan repayments. Saving at least 20% will help you avoid lenders mortgage insurance (LMI).
7. Be mindful of your debt to income ratio
Lenders will look at your debt to income ratio when assessing your loan application. This ratio compares your monthly debt payments to your gross monthly income and helps lenders determine your borrowing power. Keeping this ratio low will increase your chances of securing a loan with suitable terms.
8. Consider different loan types
There are various home loan and investment loan types available, each with its own advantages and disadvantages. Variable rates offer flexibility but can fluctuate with the market, while fixed rate loans provide stability but may come with higher interest rates.
A mortgage broker can help you explore different loan options to find a suitable fit for your financial circumstances.
9. Check your credit score
Your credit score plays an important role when you apply for a loan. A higher score could give you access to more competitive interest rates and better mortgage terms. Check your credit report for any errors and work on improving your credit file if needed.
It is a good idea to avoid taking on new personal loans or maxing out credit cards, as this could negatively impact your credit history.
10. Get a building inspection
It is a good idea to get a building and pest inspection once you have chosen a property. These reports can uncover issues that might not be visible during a standard property viewing. Spending a few hundred dollars upfront could save you if there are any structural problems with the property.
11. Plan for extra costs
Apart from the purchase price, there are many other costs involved when you buy a house. These can include legal fees, land tax, transfer duty and ongoing costs like maintenance and insurance. Budgeting for these extra costs will help you avoid financial strain after the purchase.
12. Consider future growth
Look for suburbs with good growth potential. Areas with planned infrastructure developments, like new schools or transport links, are likely to see property values increase. Even if you plan to live in the home long term, buying in an area with growth potential can enhance your likelihood of growing equity.
13. Consider different types of properties
From vacant land to house and land packages, there are various types of property available. Each comes with its own set of pros and cons.
For instance, buying vacant land gives you the flexibility to build your dream home, but it also comes with the responsibility of managing the construction process and potential land tax. House and land packages, on the other hand, can offer a more streamlined buying process.
14. Hire a good conveyancer
A conveyancer will handle the legal aspects of your purchase, from reviewing the contract of sale to helping ensure a smooth settlement period. Choose someone with experience in the Canberra market to help you avoid any complications.
15. Be prepared to compromise
In a competitive market like Canberra, you may not find a property that ticks every box. Be prepared to compromise on certain things, like the size of the property or its distance from the city centre. However, do not compromise on your non-negotiables, such as your budget.
16. Monitor interest rates
Interest rates can have a significant impact on your loan repayments. Keep an eye on announcements from the Reserve Bank of Australia (RBA) and consider whether fixed or variable rates are suited to your financial situation.
17. Look beyond the property’s presentation
It is easy to be swayed by a beautifully presented home, but try to look beyond the surface. Consider the type of property you are buying and its long-term potential. A well constructed home that needs a little cosmetic work might be a better investment than a perfectly presented but expensive property.
18. Avoid costly mistakes
Some mistakes homebuyers can make include underestimating extra costs or not getting a pre purchase inspection. It pays to do your research and talk to your mortgage broker and buyers agent (if you have one) who can guide you through the process and help you avoid any costly mistakes.
19. Understand the contract of sale
The contract of sale is a legally binding document that outlines the terms of your property purchase. Make sure you understand all the details, including any conditions of sale, settlement period, and the inclusions and exclusions list. It is wise to have your conveyancer review this document or get assistance from your broker before signing.
20. Get formal loan approval
Once you have found a property, it is time to secure formal loan approval. This involves providing your lender with detailed information about your financial circumstances, including bank statements, your credit report, and evidence of your deposit (you may have already prepared this for the pre approval). Your loan application will also require a valuation of the property to help ensure it meets the lender's criteria.
21. Plan for the settlement period
The settlement period is the time between signing the contract of sale and the official transfer of ownership. During this time, you’ll need to arrange your finances, complete a final inspection, and prepare for moving day. Help ensure you are aware of the settlement date and what is required of you during this time.
Frequently asked questions (FAQs)
What is the best advice for first-time homebuyers?
It is a good idea to speak to a mortgage broker and consider getting pre approved for a loan before you start making offers. Understand available government grants or schemes. Stick to your budget and do not rush the process.
Do first-home buyers pay stamp duty in Canberra?
Eligible first-home buyers in Canberra may be exempt from stamp duty under the Home Buyer Concession Scheme. Income and property value limits apply.
How much deposit do I need when buying a house in Canberra?
Generally, for a house deposit, a 20% deposit is ideal to help you avoid lenders mortgage insurance (LMI). However, some lenders accept as low as 5% with LMI.
Can I buy a house with a $10,000 deposit?
It could be possible with government schemes or low deposit loans, but options may be limited. You’ll also need to cover extra costs like legal fees and inspections.
Should I buy a house or an apartment in Canberra?
This depends on your budget, lifestyle and long-term goals. Houses generally offer more space and growth potential, while apartments are more affordable and require less maintenance.
What are the biggest mistakes first-home buyers make?
Common mistakes include underestimating extra costs and skipping building inspections.
Wrapping up
Your first home in Canberra is a big life achievement, and with thoughtful planning, it can be a smooth and rewarding journey. By using these helpful tips and staying up to date with the latest market insights, you are set to make confident, informed decisions to help you achieve your first property.
Should you need personalised guidance or assistance in finding suitable loan options, our team is here to help. Contact our expert mortgage brokers today.