02/03/2026
**** NS Gov Release
New First-Time Homebuyers Program Reduces Minimum Down Payment
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A new program launched today, February 3, will make it easier for Nova Scotians to become homeowners, faster.
Through the First-time Homebuyers Program, the required down payment is two per cent of the purchase price, which is less than half the usual minimum down payment. The Province is partnering with Atlantic Central and credit unions across Nova Scotia to deliver this pilot program as a way to help Nova Scotians overcome one of the barriers to buying a home.
“Nova Scotians told us that in today’s rental market, they are struggling to save the down payment to buy a new home,” said Housing Minister John White. “This program is making it more affordable to come up with a down payment and easier to make the dream of homeownership a reality.”
To qualify for the program, the borrower must be a resident of Nova Scotia and also meet the following criteria:
- have a household income of $200,000 or less
- pass the Canada Mortgage and Housing Corp. stress test to determine the maximum mortgage they can carry
- have a credit score of 630 or higher
- be a Canadian citizen, permanent resident or an immigrant with a sponsorship letter from the Nova Scotia provincial immigration program.
Previous homeowners who have not owned a home in the last four years may also be eligible.
There is a cap on the price of homes for buyers in the program – $570,000 in Halifax Regional Municipality and the Municipality of East Hants and $500,000 in the rest of the province.
Nova Scotians interested in obtaining a mortgage through the First-time Homebuyers Program should contract their local participating credit union. More information on the program, including a list of participating credit unions can be found at: https://novascotia.ca/first-time-home-buyers-program-pilot
The Province is acting as a guarantor for mortgages through the program. If a buyer defaults and the lender ends up reselling the home at a price lower than the outstanding mortgage, the Province will cover 90 per cent of the shortfall.
Housing starts are up 36 per cent over the past two years, and in the first two years of the Province’s five-year housing plan, every goal has been exceeded, with the conditions created for more than 68,000 new housing units. The plan is working to reduce barriers, speed up development and get thousands of people in housing need in new homes, faster.
Quotes:
“This partnership with the Province of Nova Scotia reflects a shared recognition across the credit union system that there is a growing group of people who are capable, responsible and ready for homeownership, but who need the right support to take that next step. That is why Atlantic Central is proud to support the participating credit unions who are helping make this program a reality, because it aligns directly with who we are and what we exist to do.”
— Paul Masterson, President and CEO, Atlantic Central and League Savings and Mortgage
Quick Facts:
- the minimum down payment on homes up to $500,000 is typically five per cent; for homes costing up to $570,000, it would be five per cent on the first $500,000 and 10 per cent on the remainder
- Atlantic Central is the trade association for member credit unions in Atlantic Canada; the organization was selected through a competitive process to administer the pilot program
- household partners can apply together provided they have lived together for at least 12 months or are newlyweds
- borrowers will not be required to obtain separate mortgage insurance, which is typically required for mortgages with less than a 20 per cent down payment
- interest rates will be capped at prime plus two per cent
Additional Resources:
Our Homes, Action for Housing: https://novascotia.ca/action-for-housing/
News release – Housing Plan on Track to Meet or Exceed Goals: https://news.novascotia.ca/en/2025/09/24/housing-plan-track-meet-or-exceed-goals
Atlantic Central: https://atlanticcentral.ca/
