Nova Scotia mortgage questions, answered

Nothing on a standard residential mortgage. The lender pays the brokerage a finder’s fee when the mortgage funds. A borrower fee applies only on some private or alternative-lender files, and under Section 22 of Nova Scotia’s Standards of Conduct regulations it must be disclosed in writing and cannot be collected until the lender has confirmed funding in writing and you have accepted the commitment.

The largest is municipal deed transfer tax, 1.0% to 1.5% of the purchase price depending on the municipality. Beyond that, budget legal fees of roughly $850 to $1,000, $100 per document to record the deed and mortgage, a $100 tax certificate in HRM, and title insurance typically under $300 on a purchase below $500,000. Confirm the figures with your lawyer.

It depends on the municipality, not the province. Halifax Regional Municipality, Cape Breton Regional Municipality, Truro, Kentville and most of the province charge 1.5%. Every municipality in Pictou County and Yarmouth County charges 1.0%, as do Antigonish County, Stewiacke, Clare, Digby district and Guysborough district. Berwick, the District of Lunenburg and St. Mary’s charge 1.25%. Your lawyer remits it on closing day.

4% of the mortgage amount at 90.01% to 95% loan-to-value, added to the mortgage rather than paid in cash. It falls to 3.1% at 85.01% to 90% and 2.8% at 80.01% to 85%. Nova Scotia does not charge provincial sales tax on the premium; only Quebec, Ontario and Saskatchewan do.

You must qualify at the greater of the contract rate plus 2% and 5.25%, whichever is higher, even though you pay the contract rate. On an insured mortgage the same qualifying rate applies through the insurer. The test caps how much you can borrow, which is why a pre-approval figure is sometimes lower than a bank’s online calculator suggests.

CMHC’s minimum for an insured mortgage is 600. The Nova Scotia First-time Homebuyers Program requires 630 and the Down Payment Assistance Program requires 650. Lenders have their own thresholds above these, and a score just over the line usually means a higher rate or a smaller mortgage rather than a decline. Below the minimums, an alternative lender may still work, at a cost.

Insured lenders use two ratios. Gross debt service, your housing costs as a share of gross income, is capped at 39%. Total debt service, housing plus all other debt payments, is capped at 44%. Both are calculated at the stress-test rate, and a car loan or student loan reduces the mortgage you qualify for more than most people expect.

Yes. Lenders and insurers qualify self-employed income on a two-year average of what you declared; CMHC recommends at least 24 months in business and allows a 15% gross-up of net income on a standard file. That means two years of Notices of Assessment and T1 Generals. If you write off most of your income, a bank-statement program with an alternative lender is the other route.

A provincial pilot launched 3 February 2026 that lets a first-time buyer put down 2% to 4% with no mortgage insurance premium; the province guarantees 90% of any shortfall instead. Household income must be under $200,000, credit 630 or better, and the price under $570,000 in HRM and East Hants or $500,000 elsewhere. It is delivered only through participating credit unions, and the rate is capped at prime + 2%.

An interest-free provincial loan of up to 5% of the purchase price, repaid over 10 years. Household income must be under $145,000 and credit 650 or better. Price caps are $570,000 in HRM and East Hants, $375,000 in West Hants, the Annapolis Valley and the South Shore, and $300,000 in Yarmouth County and the Northern and Eastern regions. You need an insured pre-approval first, and processing takes about 3 weeks.

Three that matter. The First Home Savings Account lets you save $8,000 a year to a $40,000 lifetime limit, deductible going in and tax-free coming out for a home. The Home Buyers’ Plan lets you withdraw up to $60,000 from an RRSP, repaid over 15 years. The Home Buyers’ Amount is a $10,000 claim on your tax return in the year you buy.

For the provincial First-time Homebuyers Program, someone who has not owned a home in the last four years, buying a primary residence. The federal definitions for the FHSA and Home Buyers’ Plan use their own four-year lookback with different details, so it is possible to qualify for one and not another. If you owned a home years ago and rented since, ask; you may still be eligible.

About four months before the term ends. Most lenders will hold a rate for 90 to 120 days, and moving to a different lender takes longer than signing the renewal letter your current lender mails you. Starting early means you can compare without the deadline forcing your hand. Signing the first offer without shopping is the most common way Nova Scotians overpay.

Not on a straight switch. Since 21 November 2024, OSFI exempts an uninsured mortgage moving from one federally regulated lender to another from the minimum qualifying rate, as long as the amortization and the balance do not increase; up to $3,000 can be added to cover penalties or fees. If you want more money or a longer amortization, that is a refinance and the stress test applies.

A renewal is a new term with your current lender at the same balance. A switch is a new term with a different lender at the same balance and amortization, usually with the new lender covering most transfer costs. A refinance changes the amount or the amortization, for example to pull out equity or consolidate debt; it is re-qualified in full under the stress test and needs an appraisal and a lawyer.

Yes, on the timeline more than the approval. Lenders on a rural Nova Scotia property typically want a water potability test and often a septic inspection, and the appraiser needs to find comparable sales, which takes longer outside HRM. Build a longer financing condition into a rural offer. The property itself is usually financeable; a seasonal cottage without year-round access or a heat source is the harder case.

Yes. The provincial non-resident deed transfer tax is 10% of the greater of the purchase price or assessed value on residential property of three units or fewer, including residential vacant land, on top of the municipal deed transfer tax. You are exempt if you move to Nova Scotia and make the property your primary residence; in August 2026 the province extended the proof-of-residency window to one year and the refund window to two years.

Yes. One to four units is residential, and CMHC insures up to 95% loan-to-value on one and two units and 90% on three and four units, with rental income counted toward qualifying. Five units and up is commercial, underwritten on the building’s income rather than yours, and goes through Indi Mortgage Commercial Division instead of this practice.

Nova Scotia’s Capped Assessment Program limits how much an assessment can rise each year for a long-term owner; the 2026 cap is 2.6%. The cap is removed in the year after a sale to anyone other than a family member, so the assessment resets toward market value and the tax bill can jump. Lenders qualify you on the uncapped estimate, and you should budget on it too.

In our experience, a pre-approval takes one to three business days once your documents are in. A full approval on a purchase takes five to ten business days from an accepted offer to a firm commitment, with the appraisal usually the longest step. Rural properties on well and septic, and construction files, take longer. Your lawyer wants the mortgage instructions roughly five to seven business days before closing.

For a pre-approval, four groups: government identification, income proof (recent pay stubs, a letter of employment, and two years of T4s or, if self-employed, Notices of Assessment and T1 Generals), 90 days of bank statements showing the down payment, and a list of your debts and any property you own. Once you have an accepted offer, the purchase agreement, MLS listing and property tax bill are added. Everything goes through a secure upload link, not email.

The rate hold that comes with it is typically 90 to 120 days depending on the lender. If rates rise while you shop you keep the held rate; if they fall you get the lower one at commitment. The hold is on a rate, not on an approval for a specific house, and if it lapses the pre-approval is refreshed with updated documents.

Yes. Riley holds Nova Scotia Associate Mortgage Broker licence 2025-3001134, issued 3 July 2026, with Indi, The Independent Mortgage Company Ltd., Nova Scotia Mortgage Brokerage licence 2025-3000688. Every Nova Scotia mortgage licence expires 31 October and is renewed annually. You can verify it on the provincial public register.

No. The office is at 30 Damascus Rd, Suite 212, Bedford, but nearly every file is handled remotely: a call, a secure upload link for documents, and e-signatures on the application and commitment. Riley works with borrowers from Yarmouth to Sydney the same way. The only in-person step is signing with your lawyer at closing.

Banks, credit unions, monoline lenders that deal only through brokers, and alternative and private lenders for files that do not fit the first three. The brokerage is not tied to any one lender’s products, which is what makes an honest broker-versus-bank answer possible. Riley will tell you when your own bank is the better route.