Nova Scotia's New First-Time Homebuyer Program: What It Actually Means for Halifax Buyers
Wednesday, Feb 04, 2026
Nova Scotia's New First-Time Homebuyer Program: What It Actually Means for Halifax Buyers
Nova Scotia's new first-time homebuyer program cuts the down payment to just 2% of purchase price—less than half the standard 5%. Delivered through credit unions with a $570K HRM cap and prime + 2% rate cap. Here's who qualifies and what it costs. Sandra Pike, Halifax REALTOR®.
The Province of Nova Scotia launched an entirely new first-time homebuyer program today—one that cuts the required down payment to just 2% of the purchase price. This isn't a tweak to an existing program. This is a fundamental restructuring of how first-time buyers can access homeownership in Nova Scotia.
The Headline, Stripped Down
What is Nova Scotia's new first-time homebuyer program?
Launched February 3, 2026, the First-time Homebuyers Program is a pilot initiative delivered through Atlantic Central and participating Nova Scotia credit unions. It allows qualified buyers to purchase a home with only 2% down—less than half the standard 5% minimum for insured mortgages in Canada.
Let me be direct: this is the single most aggressive first-time buyer policy Nova Scotia has ever introduced. With Halifax's average residential sale price at approximately $600,000—which sits above the program's $570,000 HRM cap—the 2% down payment on properties within the cap translates to substantial cash savings. For a $570,000 home (the maximum eligible), the difference between a standard 5% down payment ($32,000) and the program's 2% requirement ($11,400) is $20,600 in upfront cash. For many dual-income households earning under $200,000—the program's income cap—that's the difference between buying this year or waiting another 18–24 months.
This program fundamentally changes the affordability equation for first-time buyers in Halifax. You need 60% less cash on hand to get into the market. The trade-off? You're carrying a larger mortgage—and you must go through a credit union, not a big bank.
How the Program Actually Works
This is a pilot program, administered through Atlantic Central and participating credit unions across Nova Scotia. You cannot access this program through a traditional bank—it's credit union only. Here's the structure:
The Mechanics
Who Qualifies?
| Requirement | Details |
|---|---|
| Buyer Status | First-time homebuyer OR previous owner who has not owned in the last 4 years |
| Residency | Nova Scotia resident; Canadian citizen, permanent resident, or immigrant with NS provincial sponsorship letter |
| Household Income | Must not exceed $200,000 |
| Credit Score | Minimum 630 |
| Stress Test | Must pass CMHC stress test to determine maximum mortgage capacity |
| Purchase Price Cap | $570,000 in HRM and East Hants; $500,000 elsewhere in NS |
| Lender | Must obtain mortgage through participating credit union (list at novascotia.ca) |
Household partners can apply together provided they've lived together for at least 12 months, or are newlyweds. This opens the door for common-law couples and marriage-equivalent partnerships to combine income and qualify jointly.
The Numbers That Matter: What 2% Actually Looks Like in Halifax
Context is everything. Here's where Halifax actually stands as of February 2026, and how the program's $570,000 cap fits within the current market.
Down Payment Comparison: Standard vs. New Program
| Purchase Price | Standard (5%) | New Program (2%) | Cash Savings |
|---|---|---|---|
| $450,000 | $22,500 | $9,000 | $13,500 |
| $500,000 | $25,000 | $10,000 | $15,000 |
| $550,000 | $30,000 | $11,000 | $19,000 |
| $570,000 (HRM cap) | $32,000 | $11,400 | $20,600 |
On a $570,000 home—the program's maximum in HRM—a first-time buyer needs just $11,400 down instead of $32,000. That's a 64% reduction in upfront cash required. For households earning $150,000–$200,000 who can pass the stress test but haven't accumulated a large savings cushion, this is transformational.
You're putting down less, so you're borrowing more—and the interest rate cap (prime + 2%) is higher than best market rates. On a $558,600 mortgage at 6.45% over 25 years, you'll pay roughly $3,750/month. At 3.84%, it would be $2,825/month. That's a $925/month premium. The program caps at $570K in HRM—below the $600K average—excluding many single-family homes in high-demand areas.
How This Program Layers With Federal Incentives
The new First-time Homebuyers Program doesn't replace federal incentives—it stacks with them. Sandra Pike and her team at Royal LePage Atlantic routinely advise first-time buyers on layering provincial and federal programs to minimize upfront costs and maximize purchasing power. Here's what the full toolkit looks like in February 2026.
| Program | Level | Benefit | Max Value / Details |
|---|---|---|---|
| First-time Homebuyers Program | Provincial | 2% down payment mortgages through credit unions | $570K cap (HRM/East Hants) |
| RRSP Home Buyers' Plan | Federal | Tax-free RRSP withdrawal for down payment | $60,000 / buyer ($120K joint) |
| First Home Savings Account (FHSA) | Federal | Tax-free savings account for first home | $40,000 lifetime, $8K/year |
| Home Buyers' Amount | Federal | Non-refundable tax credit | Up to $1,500 |
| Down Payment Assistance Program | Provincial | Interest |
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