On February 3, 2026, the Province of Nova Scotia announced a new First-time Homebuyers Program designed to reduce the upfront cost of purchasing a home.
The program lowers the minimum down payment to 2%, compared to the standard 5%, and is being launched as a pilot program in partnership with credit unions across the province.
This update is relevant for residents who are financially stable but have struggled to save a full down payment, including some permanent residents and provincially sponsored immigrants.
What Is the First-Time Homebuyers Program?
The First-time Homebuyers Program allows eligible buyers to purchase a home with a 2% down payment, with the Province acting as a mortgage guarantor.
Key features include:
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Minimum 2% down payment
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No separate mortgage insurance required
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Interest rates capped at prime + 2%
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Mortgages delivered through participating credit unions
The program is administered by Atlantic Central, the trade association for credit unions in Atlantic Canada.
Who Is Eligible?
To qualify, applicants must:
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Be a resident of Nova Scotia
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Have household income of $200,000 or less
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Pass the CMHC mortgage stress test
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Have a credit score of at least 630
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Be one of the following:
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Canadian citizen
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Permanent resident
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Immigrant with a sponsorship letter from a Nova Scotia provincial immigration program
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Previous homeowners may also qualify if they have not owned a home in the last four years.
Household partners can apply together if they have lived together for 12 months or more, or if they are newly married.
Home Price Caps Under the Program
The program includes purchase price limits:
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$570,000 in:
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Halifax Regional Municipality
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Municipality of East Hants
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$500,000 in all other parts of Nova Scotia
These caps are important, as properties above these limits are not eligible, even if the buyer meets all other criteria.
How the Province Supports the Mortgage
Under this pilot:
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The Province acts as a 90% guarantor
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If a borrower defaults and the home sells for less than the mortgage balance:
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The Province covers 90% of the shortfall
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The lender absorbs the remaining 10%
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This structure reduces lender risk and allows credit unions to offer lower down-payment mortgages without private mortgage insurance.
How to Apply
Nova Scotians interested in the program must:
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Contact a participating local credit union
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Apply directly through the credit union (not through the Province)
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Meet all lending and eligibility requirements
An official list of participating credit unions is available on the Nova Scotia government website:
🔗 https://novascotia.ca/first-time-home-buyers-program-pilot
Related Housing Context
According to the Province, housing starts are up 36% over the past two years, and more than 68,000 housing units have been enabled under Nova Scotia’s five-year housing plan.
Official housing plan resources include:
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Our Homes, Action for Housing: https://novascotia.ca/action-for-housing/
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Housing Plan progress update: https://news.novascotia.ca/en/2025/09/24/housing-plan-track-meet-or-exceed-goals
Reality Check: What This Program Does – and Does Not – Do
This program:
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✅Reduces the upfront cash needed to buy a home
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✅ Helps creditworthy buyers who are blocked by down payment requirements
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❌ Does not guarantee mortgage approval
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❌ Does not reduce monthly mortgage payments
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❌ Does not apply to homes above the price caps
Buyers should still carefully assess:
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Long-term affordability
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Interest rate risk
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Property prices in their target area
Before making any decision, applicants should speak directly with a participating credit union and review official provincial guidance.
Canadianow will continue to monitor this pilot program and publish updates if eligibility rules, price caps, or lender participation change.
