How to Buy a House in Canberra: A Simple Step-by-Step Process

Buying a home is exciting, but many people feel overwhelmed when figuring out how to buy a house in Canberra. With property prices, loan options, and legal costs to consider, knowing the essentials is key to making informed decisions. 

Missing important steps during the homebuying process can lead to extra costs, delays, or even losing out on your dream home. Our brokers at Home Loan Broker Canberra help simplify your financing options and find the best loan for your needs. We handle pre-approval, loan documents, and government grants so you can focus on your property search and house purchase with confidence. 

Ready to take the next step? Let’s break down everything you need to know about buying a house in Canberra.

Canberra Property Market in 2025: Why Buy a House in Canberra?

Canberra’s property market remains strong in 2024, with a median house price of $970,000 (CoreLogic). Despite market fluctuations, property prices are projected to grow between 0-3% in 2025, making it a stable choice for homeownership and investment.

With low vacancy rates of 1.1% and strong rental yields averaging 4.2%, Canberra is ideal for both first-home buyers and investors (SQM Research). Suburbs like Gungahlin, Belconnen, and Tuggeranong offer great value, access to public transport, and strong local infrastructure.

As Australia's capital, Canberra benefits from high employment rates, a strong local economy, and continued government-backed development. With solid market conditions and steady demand, now is a great time to consider buying a house in Canberra.

Steps on How to Buy a House

Buying a house in Canberra requires careful planning and informed decisions. Follow these essential steps to simplify the home-buying process and avoid costly mistakes.

#1  Assess Your Financial Situation

Before starting your property search, review your income, expenses, and credit history. Understanding your borrowing capacity helps set a realistic budget and ensures you meet lender requirements.

Practical Tip: Reduce outstanding debts and avoid major purchases before applying for a loan, as lenders check your credit history and financial commitments.

#2  Get Pre-Approval for a Home Loan

Pre-approval from a financial institution confirms how much you can borrow and strengthens your position as a buyer. It also helps avoid surprises in the approval process and ensures you stay within your budget.

Practical Tip: Compare financing options or home loans from different lenders or work with a mortgage broker to find the best loan structure for your personal circumstances.

#3  Set Your Budget and Factor in Additional Costs

Beyond the purchase price, consider stamp duty, mortgage registration fees, legal costs, and lenders mortgage insurance (LMI) if your deposit is below 20%. Understanding these additional costs prevents unexpected financial strain.

Practical Tip: Use a home loan calculator to estimate your mortgage repayments and factor in potential changes to interest rates.

#4  Research the Property Market and Choose a Location

Explore suburbs like Belconnen, Gungahlin, and Tuggeranong based on lifestyle, amenities, and market conditions. Look at property types, including apartments, townhouses, and standalone homes, to match your needs.

Practical Tip: Consider proximity to public transport, schools, and shopping centres to ensure long-term convenience and strong resale value.

#5  Start Your Property Search and Attend Inspections

Use real estate websites and engage a real estate agent to find properties within your budget. Attend open homes and schedule property inspections to identify hidden issues before making an offer.

Practical Tip: Hire an independent building inspector to check for flood damage, structural defects, and compliance with building regulations.

#6  Make an Offer and Negotiate the Price

Submit an offer based on property valuation and current market trends. Be prepared to negotiate with the seller to secure the best deal while staying within your borrowing power.

Practical Tip: Research recent sales in the area to justify your offer and strengthen your negotiation position.

#7  Hire a Conveyancer and Finalise Legal Documents

A conveyancer reviews the contract, explains special conditions, and ensures a smooth transfer of property ownership. They also handle the stamp duty process and ensure compliance with ACT property laws.

Practical Tip: Read all legal documents carefully and ask questions about any unclear terms before signing.

#8  Finalise Your Home Loan and Secure Formal Approval

After your offer is accepted, your lender will conduct a final review of your financial situation. If everything checks out, you’ll receive formal loan approval and be ready for settlement.

Practical Tip: Avoid making financial changes, like switching jobs or applying for new credit cards, during this stage, as it could impact loan approval.

#9  Pay the Deposit and Prepare for Settlement

Once your loan is approved, you’ll need to pay the deposit and settle all outstanding fees. Your conveyancer will guide you through the transfer process and ensure everything is legally finalised.

Practical Tip: Keep extra funds available for unexpected expenses, like minor repairs or moving costs.

#10  Complete Settlement and Move In

On settlement day, ownership of the property officially transfers to you, and you receive the keys to your new home. Congratulations—you are now a homeowner in Canberra!

Practical Tip: Update your address for utilities, council rates, and insurance to avoid service disruptions.

Buying a house involves many steps, but working with a mortgage broker can make the process much easier. They can help with pre-approval, government grants, loan documents, and finding the best financing options based on your personal circumstances.

FAQs

How much do you need to earn to buy a house in Canberra?

You’ll need an annual income of approximately $120,000–$140,000, depending on the purchase price and your deposit size.

How much deposit do I need to buy a house in Canberra?

A minimum deposit of 5% is required, but a 20% deposit helps avoid lenders mortgage insurance.

Is it worth buying a house in Canberra?

Yes! Canberra offers excellent job security, infrastructure, and high rental yields for investors.

Can I buy a house with $10,000 deposit?

Unlikely. Most lenders require a higher minimum deposit. Consider saving for additional costs like stamp duty and mortgage registration fees.

What is the cooling-off period for buying property in Canberra?

It’s five business days, allowing buyers to cancel the contract without financial penalties.

Are there stamp duty exemptions in Canberra for first-home buyers?

Yes, eligible first-time buyers may receive concessions or exemptions based on property price.

What are common issues to look for during a building inspection?

Inspect for flood damage, structural issues, and compliance with building codes to avoid unexpected costs.

Conclusion

Buying a house in Canberra in 2025 is an exciting step toward homeownership, but it requires careful planning and informed decisions. From budgeting and pre-approval to property search and settlement, each step plays a crucial role in a smooth home-buying process. With property prices expected to grow, now is a great time for first-time buyers and investors to enter the market. 

Home Loan Broker Canberra offers expert guidance on home loans, government grants, and financing options to help you make confident decisions. Book a free consultation today by calling 02 6173 6397 or visiting Home Loan Broker Canberra, and take the first step toward owning your dream home!