Nova Scotia’s two first-time buyer programs, compared
The province runs two programs at once and neither government page mentions the other. One lends you the down payment; the other lets you buy with less of one. Here is what each requires, which one fits which buyer, and the honest answer for the many buyers who fit neither.
What first-time home buyer programs does Nova Scotia have?
Two. The First-time Homebuyers Program (launched 3 February 2026) lets you buy with a 2–4% down payment through a credit union, with no mortgage insurance, if household income is under $200,000 and the price is under $570,000 in HRM or $500,000 elsewhere. The Down Payment Assistance Program lends you 5% interest-free over 10 years if income is under $145,000.
Side by side
| First-time Homebuyers Program | Down Payment Assistance Program | |
|---|---|---|
| What it is | A mortgage with a 2–4% down payment and no mortgage insurance; the province guarantees 90% of any shortfall to the lender | An interest-free loan of 5% of the price to use as your down payment, repaid over 10 years |
| Who delivers it | Atlantic Central and participating Nova Scotia credit unions — the only lenders offering it | Housing Nova Scotia; you still need an insured mortgage pre-approval from any approved lender |
| Household income | Under $200,000 | Under $145,000 |
| Credit score | 630 or higher | 650 or higher |
| Price cap | $570,000 in HRM and East Hants; $500,000 everywhere else | $570,000 HRM and East Hants; $375,000 West Hants, Annapolis Valley, South Shore; $300,000 Yarmouth County, Northern and Eastern regions |
| Mortgage insurance | None — no CMHC/Sagen/Canada Guaranty premium | Required (the mortgage is a standard insured mortgage) |
| Interest rate | Set by the credit union, capped at prime + 2% | Loan is interest-free; the mortgage is at the lender’s rate |
| Stress test | Applies | Applies |
| First-time buyer test | No home owned in the last four years | First-time buyer; primary residence |
| Residency | Canadian citizen or permanent resident living full-time in NS (or an immigrant with a provincial endorsement) | Canadian citizen or permanent resident living full-time in NS |
| How you apply | Through the credit union’s mortgage application — no separate government form | Provincial application form with documents; about 3 weeks to process; apply at least 3 weeks before your financing deadline |
| Can a broker arrange it? | No — credit unions only | Yes — the mortgage can be placed with any approved lender |
Which one applies to you
- Income under $145,000, credit 650+, price under the DPAP cap for your region → you likely qualify for both. Compare the cost: DPAP means paying the insurance premium but borrowing 5% interest-free and keeping the wider lender market; the FTHB Program means no premium but a larger mortgage and a credit-union-only product. Run both; the answer depends on the price and the rate offered.
- Income between $145,000 and $200,000, or price over the DPAP cap but under $500,000 / $570,000 → only the FTHB Program. Talk to a credit union; ask them to state the rate against prime.
- Credit under 630, income over $200,000, price over the caps, or you need something a credit union won’t write (a rental suite, a self-build, a purchase-plus-improvements, an out-of-province income) → neither program. That is where a broker earns the file: see below.
A worked example at $400,000, outside HRM
| Route | Cash for down payment | Insurance premium | Mortgage amount |
|---|---|---|---|
| FTHB Program at 2% down | $8,000 | $0 | $392,000 |
| DPAP: 5% lent by the province | $0 (repay $20,000 over 10 years, $167/month) | $15,200 added to the mortgage | $395,200 |
| Standard insured, 5% down | $20,000 | $15,200 added to the mortgage | $395,200 |
Deed transfer tax (1.0–1.5% depending on the municipality — table here), legal fees and closing costs apply on every route and cannot be borrowed inside the mortgage.
What to do if neither program fits
Most first-time buyers we talk to fall outside at least one line of these programs — a household income over $200,000 in two-professional homes, a Halifax price over $570,000, a credit score bruised by a student-loan slip, or a self-employed income the credit union reads conservatively. None of that is a dead end. The standard route is an insured mortgage with 5% down on the first $500,000 and 10% on the rest, placed with whichever of the banks, credit unions and monoline lenders reads your file best, at no fee to you. On a new build, first-time buyers can take a 30-year amortization under CMHC Home Start, which lowers the payment enough to change the qualifying result. And the federal layers below stack on top of whichever route you take.
Federal layers that stack on any route
- First Home Savings Account — contribute up to $8,000 a year and $40,000 lifetime, deductible going in and tax-free coming out for a first home.
- Home Buyers’ Plan — withdraw up to $60,000 from your RRSP; for withdrawals in 2026–2028, repayment starts in the fifth year after the withdrawal year, over 15 years.
- Home Buyers’ Amount — a $10,000 claim on your tax return in the year you buy.
- GST rebate on new homes — up to $50,000 for first-time buyers, full rebate on homes at or below $1,000,000 and phased out to $1,500,000.
Questions people ask
Can I use both Nova Scotia first-time buyer programs together?
No. The Down Payment Assistance Program requires an insured mortgage from an approved lender, and the First-time Homebuyers Program is an uninsured credit-union mortgage backed by a provincial guarantee. They are two different routes to the same closing table; you pick one.
Do I have to use a credit union for the 2% down program?
Yes. The First-time Homebuyers Program is delivered only by Atlantic Central and participating Nova Scotia credit unions. There is no separate government application — eligibility is assessed as part of the credit union's mortgage application. A broker cannot originate it, which is why the comparison here has no conflict of interest.
What if my household income is over $200,000?
Then neither provincial program applies — the First-time Homebuyers Program caps household income at $200,000 and DPAP at $145,000. You use a standard insured mortgage with 5% down (5% of the first $500,000 and 10% of the rest), or 20% down to avoid insurance, and the federal layers — FHSA, Home Buyers' Plan, the Home Buyers' Amount — still apply.
What if the house costs more than the program cap?
The First-time Homebuyers Program cap is $570,000 in HRM and East Hants and $500,000 elsewhere; DPAP caps are $570,000, $375,000 and $300,000 by region. Above the cap you are back to a standard insured mortgage, which works up to a purchase price just under $1,500,000.
Is the 2% down program a good deal, or just a low down payment?
It removes the mortgage insurance premium — 4.00% of the loan at 95% financing on a standard insured mortgage — and the rate is capped at prime plus 2%. The trade-off is a mortgage on 96–98% of the price, so the balance is higher and equity builds more slowly, and you are limited to the credit union’s product. For a buyer who cannot reach 5%, it is a real improvement; for a buyer who can, run both numbers.
Does the 2% program still require the stress test?
Yes. The province’s announcement says applicants must pass the stress test, so you qualify at the greater of your contract rate plus 2% and 5.25%, the same as any other mortgage.
Changelog
- 2026-09-15 — Both program pages and the 3 February 2026 news release re-read. Note: the program page states a 2–4% down payment; the news release says 2%. This page uses the program page’s range with 2% as the minimum.
Not sure which program you fit?
Send your income, credit range, the town and the price you are looking at. You get back which program applies, what the alternative costs, and the cash you need to close — no fee, no obligation.