First-Time Home Buyer Grants
in Nova Scotia

Nova Scotia’s newest and most powerful program lets qualifying first-time buyers purchase a home with as little as 2% down — half the standard minimum. The government provides a deficiency guarantee to the lender, replacing the need for CMHC mortgage insurance at no cost to the buyer. Mortgages are delivered exclusively through participating credit unions across the province. This is a four-year pilot launched February 2026.

• Minimum down payment: 2% of purchase price (vs standard 5%)
• No mortgage insurance required — government guarantee covers the risk
• Available through 14 participating Nova Scotia credit unions
• Income limit: < $200,000 total household income
• Credit score: 630 or higher
• Must be a first-time buyer, Canadian citizen/PR, NS resident
• Price cap: $570,000 in Halifax Regional Municipality and East Hants
• Price cap: $500,000 throughout the rest of Nova Scotia
• Property must be your primary residence
• Can renew with a major bank once you reach 20% equity
• Apply directly through a participating credit union — no government form required

The Down Payment Assistance Program is a government loan covering 5% of your home’s purchase price, interest-free, repayable over 10 years. Unlike the 2% Pilot, DPAP is a separate program administered directly by the Province. You can stack DPAP with a regular insured mortgage from any lender. The maximum loan is $25,000. Apply at least 3 weeks before your financing deadline.

• Loan amount: 5% of purchase price (interest-free)
• Maximum loan: $25,000
• Repay over 10 years (via pre-authorized payments)
• Income limit: household income < $145,000
• Credit score: 650 or higher
• Must have lived in Nova Scotia for at least 12 months
• Price cap HRM / East Hants: $570,000
• Price cap Annapolis Valley / South Shore / West Hants: $375,000
• Price cap Yarmouth / Northern / Eastern NS: $300,000
• Must be pre-approved for an insured mortgage (NHA-approved lender)
• Apply directly to the Province; allow 3 weeks for approval
• Download the DPAP Form from novascotia.ca

If you’re buying a newly constructed home in Nova Scotia, the provincial First-Time Home Buyers’ Rebate Program returns up to $3,000 — calculated as 18.75% of the provincial portion of the HST paid on your new build. This is a rebate on top of any federal GST/HST rebate you may also qualify for.

• Maximum rebate: $3,000
• Equal to 18.75% of the provincial HST portion on a new home
• Applies to newly constructed homes only (not resale)
• Must be a first-time buyer who has not owned a home in Canada in the last 5 years
• Home must be used as your primary residence
• Claim through the Nova Scotia Department of Finance

The federal Home Buyers’ Amount provides a $1,500 non-refundable tax credit (15% of $10,000) to first-time buyers across Canada. Claim it on your federal income tax return for the year you purchase. It can be split between spouses or common-law partners.

• Credit amount: 15% × $10,000 = $1,500 maximum per purchase
• Non-refundable: reduces federal income tax owing
• Can be split between two qualifying buyers (e.g., spouses)
• Applies to new and resale homes
• Must be a first-time buyer (no home owned in past 4 years)
• Must occupy as principal residence within 1 year
• Claim on Schedule 1 of your T1 federal tax return

The Home Buyers’ Plan lets you withdraw up to $60,000 from your RRSP tax-free for a first home purchase. Couples can each withdraw $60,000 for a combined $120,000. Funds must be in your RRSP at least 90 days before withdrawal, and you repay over 15 years starting 2 years after buying.

• Maximum withdrawal: $60,000 per person
• Couples: up to $120,000 combined tax-free
• Funds must be in RRSP at least 90 days before withdrawal
• Repay over 15 years (1/15th minimum annually)
• Both new and resale homes qualify
• Must be a first-time buyer (no home owned in past 4 years)
• Request via CRA Form T1036

The FHSA combines the benefits of an RRSP (tax-deductible contributions) and a TFSA (tax-free withdrawals). Contribute up to $8,000/year with a $40,000 lifetime cap. Stack it with the HBP for $100,000 per person — or $200,000 for a couple — in tax-advantaged savings toward a down payment.

• Annual contribution limit: $8,000
• Lifetime contribution limit: $40,000
• Contributions are tax-deductible (reduce your taxable income)
• Qualifying withdrawals for first home are completely tax-free
• Can be combined with RRSP HBP: up to $100,000 per person
• Unused contribution room carries forward 1 year
• Open through any major Canadian bank or financial institution
• Must be a Canadian resident, first-time buyer, aged 18–71

Can I use the 2% Pilot and the DPAP together?

These are separate programs: the 2% Pilot is a mortgage product from participating credit unions backed by the provincial guarantee, while DPAP is an interest-free loan administered by the Province of Nova Scotia. Whether they can be combined depends on your lender. The DPAP Guide notes that you must be pre-approved for an insured mortgage, while the 2% Pilot replaces mortgage insurance with a provincial guarantee. Speak to a participating credit union and the NS Department of Growth and Development to confirm your specific options.

Which credit unions offer the 2% Pilot?

As of February 2026, 14 Nova Scotia credit unions participate: East Coast Credit Union, Sydney Credit Union, Nova Scotia Teachers Credit Union (Teachers Plus), Mosaik Credit Union, iNova Credit Union, Coastal Financial Credit Union, Valley Credit Union, St. Joseph’s Credit Union, Glace Bay Central Credit Union, Credit Union Atlantic, Caisse populaire de Clare, New Waterford Credit Union, Acadian Credit Union, and Cape Breton Credit Union. Contact your nearest branch to apply.

Does DPAP apply to resale homes or only new builds?

The DPAP can be used for both new and resale homes. The only restriction is that the home must be in Nova Scotia, must be your primary residence, and must fall under the applicable purchase price cap for your region. The First-Time Home Buyers’ Rebate Program (HST rebate), however, applies only to newly constructed homes.

How long does DPAP approval take?

The Nova Scotia government states that DPAP approval takes approximately 3 weeks from receiving a complete application. You must apply at least 3 weeks before the financing deadline in your Agreement of Purchase and Sale. Apply early — delays can occur if your application is incomplete or additional information is needed.

What are the income limits for each program?

The programs have different income thresholds: the 2% Pilot allows household income up to $200,000; the DPAP requires household income under $145,000. If your household income is between $145K and $200K, you may still qualify for the 2% Pilot even if DPAP is out of reach. Federal programs (HBTC, FHSA, HBP) have no income limits.

1. Contact a participating credit union — To access the 2% Pilot, speak with one of the 14 participating NS credit unions. No government form is required — eligibility is assessed as part of the mortgage application. Do this first since it may eliminate the need for DPAP.
2. Apply for DPAP early — If you’re using DPAP, download the application from novascotia.ca and submit it at least 3 weeks before your financing deadline. Gather your T4s, NOAs, pay stubs, and mortgage pre-approval before starting.
3. Open an FHSA now — The $8,000 annual contribution room only accumulates from the year you open the account. Even if you’re buying soon, open an FHSA and contribute what you can for an immediate tax deduction.
4. Maximize your RRSP for HBP — Funds must be in your RRSP for 90+ days before withdrawal. If you plan to use the HBP, contribute now and wait the required holding period.
5. Claim both tax credits at tax time — The federal Home Buyers’ Amount ($1,500) is claimed on your T1 for the year of purchase. Don’t miss it.
6. Budget for municipal deed transfer tax — If you’re buying in Halifax, factor in the 1.5% municipal deed transfer tax at closing. On a $500,000 home, that’s $7,500. No provincial LTT applies, but the municipal portion is payable at closing.