New First-Time Homebuyers Program Lowers Down Payment Requirement

A new program launched on February 3 is aimed at helping more Nova Scotians buy their first home sooner.

The First-Time Homebuyers Program reduces the required down payment to just two per cent of the purchase price, which is less than half of the usual minimum. The Province is working with Atlantic Central and credit unions across Nova Scotia to deliver this pilot program. The goal is to make it easier for people to overcome one of the biggest challenges to homeownership—saving for a down payment.

Who Can Apply

To qualify, applicants must:

• Live in Nova Scotia

• Have a household income of $200,000 or less

• Pass the Canada Mortgage and Housing Corporation stress test

• Have a credit score of at least 630

• Be a Canadian citizen, permanent resident, or an immigrant with an endorsement from Nova Scotia’s provincial immigration program

People who have not owned a home in the past four years may also be eligible.

Home Price Limits

There are maximum purchase prices under the program:

• $570,000 in Halifax Regional Municipality and the Municipality of East Hants

• $500,000 in the rest of the province

Nova Scotians who are interested should contact a participating local credit union for more details and to apply.

How the Program Works

The Province will act as a guarantor for mortgages issued through this program. If a borrower defaults and the home sells for less than what is still owed on the mortgage, the Province will cover 90 per cent of the remaining amount.

This initiative is part of the Province’s five-year housing plan. Over the past two years, housing starts have increased by 36 per cent, and conditions have been created for more than 68,000 new housing units across Nova Scotia.

Quick Facts

• The standard minimum down payment is five per cent for homes up to $500,000. For homes up to $570,000, it is five per cent on the first $500,000 and 10 per cent on the remaining amount.

• Atlantic Central was selected through a competitive process to administer the pilot program.

• Couples can apply together if they have lived together for at least 12 months or are newly married.

• Borrowers will not need separate mortgage insurance, which is typically required when the down payment is less than 20 per cent.

• Interest rates are capped at prime plus two per cent.

Source: Province of Nova Scotia – First-Time Homebuyers Program news release (February 3, 2026).