- 20% waives LMI: Saving a 20% deposit will generally avoid lender’s mortgage insurance (LMI), while buying with 5% or 10% may allow you to enter the Canberra market with less saved.
- ACT conveyance duty applies: Your deposit isn’t your entire upfront budget. Conveyance duty, where applicable, plus conveyancing, inspections and ACT land title costs also need to be considered.
- Support options exist: Government schemes, profession-based LMI waivers and guarantor home loans may help eligible Canberra buyers purchase with a smaller deposit.
Understanding Canberra’s property deposit baseline
The amount you need for a deposit for a Canberra property depends heavily on what you’re buying. Cotality data as at 31 August 2026 puts Canberra’s median house value at $1,007,652, compared with $585,937 for units.
That difference matters. Buyers targeting houses generally face a much larger savings hurdle than those considering apartments or other unit-titled properties, so a percentage alone doesn’t tell you whether your deposit target is realistic.
“Canberra buyers can have very different deposit requirements depending on the type of property they’re targeting. Someone who is struggling to build a deposit for a house may find that looking at a unit changes the numbers considerably. Property choice is therefore an important part of the finance conversation, particularly for first home buyers trying to work out where they can realistically enter the market,” said Jessie Chen of Loan Market Canberra.
For buyers, the starting point should be a realistic property budget. From there, you can calculate what different deposit percentages mean in dollars and how they affect your loan.
Deposit tiers: 5%, 10% and 20% scenarios in Canberra
|
Property |
Median value |
5% deposit |
10% deposit |
20% deposit |
|
Canberra house |
$1,007,652 |
$50,383 |
$100,765 |
$201,530 |
|
Canberra unit |
$585,937 |
$29,297 |
$58,594 |
$117,187 |
A 5% deposit Canberra scenario creates the lowest savings hurdle. For buyers who have the income to service a home loan but haven’t accumulated a large deposit, that could potentially bring a purchase forward considerably. The trade-off is a 95% loan-to-value ratio (LVR), which generally means a larger loan and LMI unless the buyer qualifies for a government scheme, professional waiver or another eligible arrangement.
Increasing the deposit to 10% halves the amount being borrowed above an 80% LVR. LMI may still apply, but its cost could be lower than at 95% LVR, depending on the lender and loan. This is why a 10% deposit Canberra buyer should compare actual lender scenarios rather than assuming the only meaningful choice is between 5% and 20%.
Reaching 20% generally removes LMI and substantially reduces the amount borrowed, but the extra savings required are significant. On a median Canberra house, moving from 10% to 20% means finding roughly another $100,765. For a median unit, the difference is about $58,594.
ACT fees to calculate on top of your deposit
Canberra buyers need to consider conveyance duty as well as their deposit, although major changes introduced on 1 July 2026 mean many eligible home buyers can now avoid it entirely. Other costs can include conveyancing, inspection reports, title registration and ACT-specific leasehold enquiries.
For buyers who don’t qualify for an exemption, ACT conveyance duty varies according to the property’s value and whether the transaction qualifies for owner-occupier rates. For example, based on current rates, an eligible owner-occupier buying an $850,000 property without a further concession would pay approximately $25,108 in duty.
The ACT Home Buyer Concession Scheme is particularly significant. From 1 July 2026, the previous property value and income limits were removed, so eligible buyers pay no conveyance duty regardless of the property’s value. To qualify, buyers and their domestic partners generally must not have owned property during the previous five years, while at least one buyer must live in the property as their principal residence for at least 12 months, commencing within one year of settlement.
Canberra’s leasehold system also creates some additional administrative considerations.
Your conveyancer or solicitor may need to review the Crown lease, title, rates and other property information, while Access Canberra charges fees for land title searches and registration. The current fee to register a property transfer, for example, is $496.
Building and pest inspections, strata or units plan information for apartments and legal or conveyancing fees should also be allowed for. These costs won’t necessarily change your deposit percentage, but they do change how much cash you need before settlement.
Options for buying in Canberra with a smaller deposit
A 20% deposit isn’t the only route into the Canberra market. Government support, profession-based LMI waivers and guarantor loans can potentially reduce the amount some buyers need to save.
Australian Government 5% Deposit Scheme
The Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase with a minimum 5% deposit without paying LMI. There are no income caps or waitlists, but applicants still need to satisfy their participating lender’s credit requirements.
Applicants generally need to be at least 18, an Australian citizen or permanent resident and either a first home buyer or someone who hasn’t owned property or land in Australia during the previous 10 years. The property must be owner-occupied and the loan must meet the scheme requirements.
The current property price cap is $1 million throughout the ACT. Both the purchase price and lender-assessed value need to be within that limit.
That threshold is worth noting against the Cotality figures. Canberra’s $1,007,652 median house value sits just above the cap, while its $585,937 median unit value sits comfortably below it. Of course, individual properties vary considerably around those medians.
Profession-based LMI waivers
Canberra’s professional workforce creates another avenue worth investigating. Some lenders offer LMI waivers or higher-LVR lending to eligible professionals, which can potentially allow them to borrow more than 80% without paying LMI.
Doctors and certain other medical professionals are commonly included in these policies, while some lenders also offer options for eligible lawyers, accountants and other professionals. Eligibility isn’t based on occupation alone. The lender may consider qualifications, professional registration, income, employment status, loan size and the property being purchased.
“Canberra has a large professional workforce, so it’s worth checking whether your occupation changes your lending options before assuming you need a 20% deposit. Some medical, legal and other professionals may qualify for lender policies that waive LMI at a higher LVR. The policies differ quite a bit between lenders, so the value is in knowing which lenders recognise your profession and what their specific criteria are,” said Jarod Gilmarton, a mortgage broker at Loan Market Canberra.
Guarantor home loans
A guarantor home loan may be another option where the buyer can service the loan but hasn’t accumulated a large deposit. An eligible family member, commonly a parent, provides additional security using equity in their own property.
Depending on the lender and structure, this can potentially reduce the buyer’s cash deposit requirement and avoid LMI. The borrower must still satisfy the lender’s servicing and credit criteria, while the guarantor must meet separate eligibility requirements.
The guarantee may be limited to part of the loan rather than the entire debt and may potentially be released once sufficient equity has been established, subject to lender requirements. However, acting as guarantor carries financial risk, including the possibility of becoming responsible for the guaranteed amount if the borrower defaults, so independent legal and financial advice should be considered.
Ready to check your borrowing capacity in Canberra?
Working out your deposit goals makes searching for a Canberra property much easier. A Loan Market broker can review your financials, explain ACT concessions and compare suitable loan options, including government schemes, profession-based LMI waivers and guarantor lending where relevant.
Get in touch with a Loan Market broker today to learn more.
FAQs about Canberra property deposits
Can I buy a Canberra unit with a 5% deposit?
Potentially. Some lenders offer loans to eligible buyers with a 5% deposit, although LMI would generally apply unless you qualify for an exemption or alternative arrangement. Eligible first home buyers may also be able to use the Australian Government 5% Deposit Scheme, which has a current ACT property price cap of $1 million.
How does the ACT Home Buyer Concession Scheme work?
From 1 July 2026, eligible buyers can receive a full conveyance duty exemption, with the previous income and property value caps removed. Buyers and their domestic partners generally must not have owned property in the previous five years and at least one buyer must meet the principal residence requirements.
Is LMI expensive on a Canberra house loan?
It can be a substantial cost, particularly on larger loans with high LVRs, but there isn’t one standard LMI price. The amount depends on factors including the loan size, deposit, LVR and lender, so it is worth obtaining actual figures rather than estimating the cost from the property price alone.
