Nova Scotia’s New 2% Down Payment Program: What First-Time Home Buyers Need to Know
Buying your first home in Nova Scotia just became more achievable with the Provinces New First-Time Buyers Downpayment program!
In 2025, the Province of Nova Scotia launched a First-Time Home Buyers Program Pilot that allows eligible buyers to purchase a home with as little as 2% down. For many renters and first-time buyers, this program removes one of the biggest barriers to homeownership: saving a large down payment.
If you’re wondering whether you qualify, how it works, or whether it’s the right move for you, here’s a clear breakdown plus what to watch for before jumping in.
What Is the Nova Scotia 2% Down Payment Program?
The First-Time Home Buyers Program Pilot is designed to help eligible Nova Scotians enter the housing market sooner by reducing the required down payment.
Instead of the traditional 5% minimum, qualified buyers can purchase a home with just 2% down, as long as they meet specific income, credit, and residency requirements.
👉 Official program details:
https://novascotia.ca/first-time-home-buyers-program-pilot/
Who Is Eligible for the 2% Down Payment Program?
To qualify, buyers must meet all of the following criteria:
• Household income under $200,000
• Be a first-time home buyer
• Be a Canadian citizen or permanent resident
• Live in Nova Scotia
• Have a credit score of 630 or higher
• Be able to cover 2% down payment plus closing costs
• Qualify under the federal mortgage stress test
• Purchase a home that will be their primary residence
This program is not available for investment properties, short-term rentals, or second homes.
Purchase Price Limits You Need to Know
The program includes price caps, depending on location:
• Up to $570,000 in HRM
• Up to $500,000 elsewhere in Nova Scotia
These caps align well with many entry-level homes, townhouses, and condos — especially for buyers searching in suburban HRM or regional markets.
If you’re actively browsing affordable options, you may also find these helpful:
- https://makehalifaxhome.ca/2025/11/25/top-5-tips-for-first-time-home-buyers-in-a-slower-halifax-market/
- https://makehalifaxhome.ca/2025/11/19/halifax-homes-under-500000-first-time-buyers/
- https://makehalifaxhome.ca/2025/02/07/halifax-home-buyers-choose-local-a-guide-by-your-local-expert/
Important Lending Rules (This Part Matters)
There are a few key conditions buyers should understand before applying:
You Must Use a Participating Credit Union
The mortgage must be obtained through a participating credit union, not a traditional bank. Each credit union may apply slightly different underwriting standards.
Switching Lenders Later Could Cost You
If you refinance or switch lenders in the future, mortgage default insurance may be required, even if it wasn’t at purchase. This is an important long-term consideration that should be discussed with your broker and REALTOR® upfront.
Why This Program Is a Big Deal for First-Time Buyers
For many Halifax-area buyers, the hardest part of buying a home isn’t qualifying — it’s saving the down payment while rent keeps rising.
This program:
• Shortens the time needed to buy
• Keeps buyers closer to their preferred neighbourhoods
• Allows savings to stay available for emergencies or improvements
• Makes ownership possible sooner, not “someday”
That said, 2% down isn’t right for everyone. Monthly payments, long-term costs, and flexibility all matter.
Should You Use the 2% Down Payment Program?
This is where personalized advice becomes critical.
Some buyers are better served by waiting, saving more, or choosing a different mortgage structure. Others benefit enormously from entering the market earlier and building equity sooner.
If you’re unsure, I recommend starting with education first:
- https://makehalifaxhome.ca/blog-list/first-time-home-buying-tips/
- https://makehalifaxhome.ca/blog-list/down-payment-strategies-halifax/
- https://makehalifaxhome.ca/blog-list/halifax-buyers-guide/
Final Thoughts: Get Clarity Before You Commit
Nova Scotia’s 2% down payment program is a powerful new option — but like any financial decision, it works best when paired with good advice and clear planning.
If you’re thinking about buying your first home in Halifax or anywhere in Nova Scotia and want to understand:
• Whether you qualify
• What homes fit the price caps
• How this compares to traditional financing
• What your long-term costs look like
I’d be happy to walk through it with you, no pressure, just clarity.
Nick Ogden | REALTOR
Call or Text: 902-240-0635 | Email: nogden@pressrealty.ca