In short: In the ACT there is no first home owner grant, but the income-tested Home Buyer Concession Scheme can reduce duty to nil on any home, new or established, at any price. Combine that with the First Home Guarantee (5% deposit, no LMI, cap $1,000,000) and a newly permanent Nepali family in Canberra can buy with about 5% of the price in cash.
Key takeaways
- PR removes your foreign-person status. FIRB approval and the ACT's foreign-owner land tax surcharge no longer apply, and neither does the federal established-dwelling ban (to at least 30 June 2029).
- The Home Buyer Concession Scheme (HBCS) is income-tested. Eligible buyers pay no duty regardless of the property's price or whether it is new or established.
- There is no ACT first home owner grant.
- The Guarantee cap is $1,000,000 for the whole ACT, with no income cap.
- All ACT residential land is held on 99-year Crown leases. Lenders are used to it, but your conveyancer will explain the lease terms.
Canberra has a Nepali community out of proportion to its size, built on public-service and university jobs, hospitality, aged care and the ACT's own skilled nomination program, which has been a well-used 190 and 491 route for Nepali applicants. The territory does housing policy its own way: leasehold land, no separate grant, and a duty concession that depends on your income rather than the property's price. This guide explains what that means once your PR is granted.
The ACT's rules at a glance
| Scheme | Rule at the time of writing | Notes |
|---|---|---|
| First Home Guarantee | 5% deposit, no LMI, no income cap; cap $1,000,000 | Citizens and PRs; owner-occupiers; no property owned in Australia in the last 10 years |
| Home Buyer Concession Scheme | Duty reduced to nil for eligible buyers; eligibility depends on household income thresholds set by the ACT Revenue Office | New or established, any price; residence conditions apply |
| First home owner grant | None | The HBCS replaced it |
| Foreign owner land tax surcharge | Applies to foreign persons | PRs exempt |
| Established-dwelling ban | Foreign persons blocked until at least 30 June 2029 | Not applicable to PRs or spouses of citizens and PRs |
Income thresholds for the HBCS change each year and depend on how many dependent children you have. Check the current figures at the ACT Revenue Office and the Guarantee rules at Housing Australia.
Worked example: a $750,000 townhouse in Gungahlin
A Nepali couple, one an APS clerk and the other a hospitality supervisor, both permanent residents since February, buy a three-bedroom townhouse in the Gungahlin district for $750,000. Their combined income is under the HBCS threshold for their household, so the concession applies.
| Item | Amount |
|---|---|
| Purchase price | $750,000 |
| Deposit (5%) | $37,500 |
| Loan | $712,500 |
| Duty | $0 (Home Buyer Concession Scheme, income-eligible) |
| LMI | $0 (Guarantee) |
| Conveyancing, building report, registration | Roughly $3,000 to $5,000 |
| Monthly repayment, for illustration at 6.00% p.a. over 30 years | About $4,272 |
If their income sat above the HBCS threshold, ordinary ACT duty would apply, and on $750,000 that is a five-figure sum. That is why timing matters in Canberra: a family expecting a pay rise or a second income to start may be better off buying before it lands, and a family close to the threshold should check where a bonus or overtime puts them. The ACT also charges annual rates on all properties and land tax on properties that are not your home, so hold costs are higher than the mortgage alone. Use the borrowing power calculator with a conservative expense figure.
For a townhouse or apartment, body corporate fees go into the serviceability test, and lenders treat some high-density Canberra apartment complexes conservatively. A freestanding house in the outer suburbs of Gungahlin, Belconnen or the Molonglo Valley usually values more predictably.
Where Nepali families live in Canberra
Gungahlin and Belconnen are the two districts with the largest Nepali populations, followed by Tuggeranong and the inner north near the universities. Nepali grocers and momo restaurants have opened in the Gungahlin and Belconnen town centres, and the community is well organised: the Canberra Nepali associations run Dashain and Tihar programs, football and cricket tournaments, blood drives and a weekend Nepali school, and the Hindu temples and Buddhist centres in the region host the major festivals. Because many families arrived through ACT nomination, the associations are a good source of advice on the 190 and 491 pathways and on which suburbs suit families with school-age children. See our Canberra and ACT pages for area notes.
Lender and document notes for new PR holders in the ACT
- Status. Passport and PR grant notice; the lender checks VEVO. From PR onward mainstream lenders assess you as they would a citizen.
- Public-service income. APS and ACT Government employment is well regarded by lenders; probation on a permanent role is accepted by most. Non-ongoing (contract) APS roles need a history of renewals or a longer contract period.
- Hospitality and care income. Shift penalties and overtime are counted at 80% to 100% depending on the lender; casual work needs six to twelve months.
- Genuine savings. 5% held for three months with most lenders; rent paid on time may substitute. See genuine savings explained.
- Source of funds. Nepal Rastra Bank does not permit capital transfers out of Nepal to buy property abroad, and lenders require a lawful, documented source. Use Australian savings, gifts from family in Australia with a gift letter, or NRN-compliant funds; get legal advice on anything else.
- Leasehold title. All ACT land is on a 99-year Crown lease. Lenders lend on it without fuss, but ask your conveyancer about the lease purpose clause and any building covenants before you sign.
- Buffer. Every lender tests at your rate plus 3 percentage points, and regular remittances in your statements count as living expenses.
Gather the documents checklist and get pre-approval before you attend an auction; Canberra sells a lot of property that way. Our first home buyer loans page covers the full process.
Frequently asked questions
What if we are just over the HBCS income threshold?
Then ordinary duty applies to the whole purchase. The threshold is a cliff, not a taper, so check the current figure for your household size on the ACT Revenue Office site before you commit. If one partner's income is variable, the lender's assessment and the HBCS assessment may use different figures, so get both checked.
Can I use the Guarantee on a Canberra apartment?
Yes, if it is under $1,000,000 and the lender accepts the building. Some lenders limit LVR on apartments in large complexes or under a certain floor area, which can push you outside the 95% lending the Guarantee relies on. Check the specific building with your broker before paying a deposit.
Does the leasehold system affect my loan or resale?
Not in practice. ACT Crown leases run for 99 years and are renewed as a matter of course; lenders treat them like freehold for lending purposes and buyers treat them the same at resale. What does matter is the lease purpose clause (residential use) and any covenants on newer estates.
I am on ACT-nominated 491. Can I buy now?
As a temporary resident you can buy a new home or land with FIRB approval, but not an established home, and you cannot use the Guarantee or the HBCS concessions reserved for eligible buyers. Once your 191 is granted, all options open. Our temporary resident guide explains what is possible in the meantime.
Talk to GNT Finance
GNT Finance arranges home loans in the ACT by phone, video and e-signature from our Melbourne office, in English, Nepali or Hindi. We can check HBCS eligibility timing, lender policy on your building and the Guarantee in one conversation. Book a free consultation or call 0426 403 703; there is no cost to you for our home-loan service in most cases. See also Australia-wide, Sydney and Victoria.
This is general information, not migration, legal, tax or credit advice. Migration rules change often — confirm with a registered migration agent (MARA) or the Department of Home Affairs. Duty and Guarantee figures are as at the time of writing; confirm them with the ACT Revenue Office and Housing Australia.
Written by Gorakh Timilsina
Founder, CEO & Senior Mortgage Consultant at GNT Finance. Gorakh started as a broker assistant, spent years as a senior credit officer assessing loan applications, and now helps Melbourne families get the right loan approved. English, Nepali and Hindi spoken.