22 Tips for Canberra First Home Buyers: Make Your Dream Home a Reality

Buying your first home in Canberra is an exciting journey, but it’s also a decision that requires careful planning and expert guidance. The Canberra property market has unique characteristics, and Canberra in 2025 is no exception. With property prices fluctuating and federal government schemes evolving, it’s crucial to stay well-informed. 

This is where expert mortgage brokers such as the team at Home Loan Broker Canberra becomes your best ally in your home-buying journey. With their deep understanding of the market, a broker can offer tailored advice, present the best financial options, and help you avoid common pitfalls to keep you on track to securing your dream home.

Ready to unlock the door to your first property? Keep on reading for the 22 essential tips we've compiled especially for you to guide you in your homeownership experience.

Current Property Market Trends in Canberra

In 2025, Canberra's property market continues to experience steady growth, largely driven by the city’s strong economy and low unemployment rate.

Demand remains high, especially in the detached housing segment, as families and professionals seek the lifestyle benefits Canberra offers. However, supply is tight, particularly in established suburbs, which has kept prices on an upward trajectory.

Interestingly, units and apartments are seeing increased interest, particularly from first home buyers looking for affordability without sacrificing proximity to the city centre. According to Domain’s latest data, the median house price in Canberra is around $927,000, while units are more accessible, with a median price of approximately $562,000. 

The city's ongoing infrastructure projects, including the expansion of light rail and new commercial developments, are also playing a role in shaping buyer interest and property values.

Popular Suburbs for First Home Buyers

When choosing where to buy in Canberra, location is key. Some suburbs have become hotspots for first home buyers due to their balance of affordability, amenities, and potential for capital growth.

1. Gungahlin: Known for its family-friendly atmosphere and relatively 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.
2. 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, numerous parks, and the Westfield Belconnen shopping centre.
3. Tuggeranong: Offering more space and value for money, Tuggeranong's median house price sits around $800,000. It’s ideal for those seeking a quieter lifestyle with access to nature reserves and larger property sizes.
4. Woden Valley: While slightly 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 attractive options for first-time buyers.

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 CoreLogic:

1. Inner North (e.g., Braddon, Dickson): The median house price in these sought-after suburbs is around $1,200,000. Braddon, in particular, is popular among younger buyers for its trendy cafes and nightlife.
2. Inner South (e.g., Kingston, Narrabundah): Known for its historic charm and proximity to Lake Burley Griffin, the Inner South commands higher prices, with median house prices around $1,500,000. Units in Kingston, however, are more accessible, with prices around $600,000.
3. Gungahlin: As mentioned earlier, the median house price is approximately $880,000, with units averaging around $500,000.
4. Belconnen: The median house price here is about $790,000, while units average around $460,000.
5. Tuggeranong: Offers some of the most affordable options, with houses at a median of $800,000 and units around $480,000.

22 Tips for First Home Buyer 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 considered as your investment - you wouldn't want to purchase a property and have a buyer's remorse later on because of so many factors such as property price, features, locations, and so on!

To ensure you end up with the right property investment decision - and avoid making a costly mistake - here are the top key tips that will help you move forward in the buying process with confidence.

1. Know Your Budget

Having a budget in mind and understanding your financial circumstances should be at the top of your list of priorities in your home-buying journey. Determine your borrowing power by assessing your current income, savings, and expenses.

Tools like a mortgage broker's calculator can help you estimate how much you can borrow and what your loan repayments might look like. Always factor in extra costs such as bank fees, stamp duty, and insurance when calculating your budget.

2. Get Pre-Approval

Before starting your property search, secure pre-approval from your lender. This formal loan application process will give you a clear idea of your borrowing limit and make you a more attractive buyer in the eyes of sellers.

Keep in mind that pre-approval doesn’t guarantee final loan approval, but it’s a strong step towards securing your dream home.

3. Research Canberra Suburbs

Choosing the right suburb is crucial. Factors like the property cycle, local amenities, and future development plans can significantly impact your investment. Better yet, decide early on what kind of location would suit your existing or target lifestyle.

Whether you're interested in a quiet suburb like Woden Valley or a more vibrant area like Belconnen, research is key to making an informed decision. Consulting with a real estate agent or an experienced mortgage broker who is knowledgeable on these areas can also be beneficial.

4. Understand Government Schemes

As a first-time home-buyer, one of your best moves is to take advantage of various federal government schemes available in Canberra, such as the First Home Loan Deposit Scheme (FHLDS) and the First Home Owner Grant (FHOG).

These initiatives can help you with your house deposit, especially when you're pressed to secure a major upfront payment. Additionally, check out stamp duty concessions available in the ACT, which can save you thousands on buying costs.

5. Start Saving Early

Start saving early for a large house deposit. A large house deposit can increase your borrowing power and reduce your loan repayments. Aim for at least 20% to avoid Lenders Mortgage Insurance (LMI). Consider setting up a high-interest savings account or an offset account to grow your savings faster.

6. 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 the best fit for your financial circumstances.

7. Check Your Credit Score

Your credit score plays a crucial role in the loan application process. A higher score can 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.

Avoid taking on new personal loans or maxing out credit cards, as this can negatively impact your credit history.

8. Don’t Skip Building Inspections

Never forgo a building and pest inspection once you've selected your property. These reports can uncover issues that might not be visible during a standard property viewing. Spending a few hundred dollars upfront can save you from costly mistakes later on.

9. Plan for Extra Costs

Aside from the purchase price, there are many other costs involved in the house-buying process. These 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.

10. Consider Future Growth

Look for suburbs with strong 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 a growth area can enhance your investment property prospects.

11. Hire a Good Conveyancer

A conveyancer will handle the legal aspects of your purchase, from reviewing the contract of sale to ensuring a smooth settlement period. Choose someone with experience in the Canberra market to avoid any complications.

12. Get Formal Loan Approval

Once you've found a property, it's 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. Your loan application will also require a valuation of the property to ensure it meets the lender's criteria.

13. 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 aspects, like the size of the property or its distance from the city centre. However, don't compromise on your non-negotiables, such as your budget or the condition of the property.

14. 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 best suited to your financial situation.

15. Look Beyond the Property’s Presentation

It’s easy to get swayed by a beautifully presented home, but try to look beyond the surface. Consider the type of property you’re 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.

16. Avoid Costly Mistakes

First-time homebuyers often make common mistakes like underestimating extra costs or not getting a pre-purchase inspection. Learn from others’ experiences and avoid these pitfalls. Additionally, work closely with a property expert, buyers agent or mortgage broker who can guide you through the process and help you avoid any costly mistakes.

17. Consider the Property Cycle

Property markets go through cycles of growth, stability, and decline. Being aware of where Canberra is in the property cycle can help you make informed decisions. For instance, buying in a declining market could mean getting a better deal, but it might take longer for your property to appreciate in value.

18. 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’s wise to have your conveyancer review this document or get assistance from your broker before signing.

19. 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.

20. 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. Ensure you’re aware of the settlement date and what’s required of you during this time.

21. 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 favourable terms.

22. Consult a Mortgage Broker

A mortgage broker, such as Home Loan Brokers Canberra, can provide valuable guidance throughout the buying process. They can help you compare loan options, understand different loan terms, and navigate the formal loan application process.

With access to a wide range of lenders, a mortgage broker can find competitive interest rates that suit your financial situation.

Frequently Asked Questions (FAQs)

What is the best advice for first time home buyers?

Get pre-approved for a loan early and research government grants or schemes. Stick to your budget and don’t 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 avoid lenders mortgage insurance (LMI). However, some lenders accept as low as 5% with LMI.

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

It’s 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.

What is the First Home Owner Grant in Canberra?  

The First Home Owner Grant is a federal government scheme providing financial assistance to first-time homebuyers. In the ACT, this one-off grant is up to $7,000 for new homes.

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-time homebuyers make? 

Common mistakes include not securing pre-approval, underestimating extra costs, and skipping building inspections. Working with a property expert or buyers agent can help you avoid these costly mistakes.

Wrapping Up

Your first home in Canberra represents a major life achievement, and with thoughtful planning, it can be a smooth and rewarding journey. By applying these expert tips and staying up-to-date with the latest market insights, you're set to make confident, informed decisions to keep you on-track to achieving your first property. 

Should you need personalised guidance or assistance in finding the best loan options, our team is here to help. Contact our expert mortgage brokers at Home Loan Broker Canberra at (02) 6173 6397 today.