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.

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

• Down payment requirement: 2% of the purchase price (versus the standard 5%–10% for insured mortgages)
• Provincial guarantee: The Province acts as guarantor. If the buyer defaults and the property sells for less than the outstanding mortgage, the Province covers 90% of the shortfall to the lender.
• No CMHC insurance required: Borrowers are not required to obtain separate mortgage default insurance, which is typically mandatory for down payments under 20%.
• Interest rate cap: Rates are capped at prime + 2%. With prime currently at 4.45%, that puts the maximum rate at 6.45%—higher than the best market rates (3.84% fixed, 3.35% variable), but below stress-test thresholds.

Who Qualifies?

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

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.

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.

Here's the critical distinction: the new First-time Homebuyers Program is a mortgage product, not a loan or grant. You're accessing a low-down-payment mortgage through a credit union. The RRSP Home Buyers' Plan and FHSA are sources of cash to cover your 2% down payment. They work together.

For example: a couple buying a $550,000 home needs $11,000 down under this program. If they've each contributed $8,000 to their FHSAs over the past year, they can withdraw $16,000 tax-free to cover the down payment—and still have room left over for closing costs. The FHSA and RRSP HBP are not mutually exclusive; you can use both in the same transaction.

What This Means for Halifax Buyers Right Now

Halifax is entering 2026 as a balanced-to-slight seller's market, with inventory hovering around 2.0–2.5 months of supply. The top neighbourhoods drawing buyer interest this year—Dartmouth, Sackville, and Bedford West—span a range of price points, and many fall comfortably within this program's $570,000 HRM cap. That matters.

If You're a First-Time Buyer Considering This Program

1. 1
   Contact a participating credit union immediately. This program is credit union only—you cannot access it through RBC, TD, Scotiabank, or any big bank. A full list of participating credit unions is available at novascotia.ca/first-time-home-buyers-program-pilot.
2. 2
   Run the stress test first. You must pass CMHC's mortgage stress test, which qualifies you at a rate higher than what you'll actually pay. With the program's rate cap at prime + 2% (currently 6.45%), you'll be tested at approximately 8.45%. Make sure you can carry the payment at that level.
3. 3
   Compare the rate premium to your timeline. The program caps rates at prime + 2%, which is higher than best market rates (3.84% fixed). If you can save the additional down payment within 12–18 months and secure a market-rate mortgage instead, run the math on total interest cost over 5 years. For some buyers, waiting is cheaper. For others, the opportunity cost of rising home prices outweighs the rate premium.
4. 4
   Understand the $570,000 cap in HRM. The program caps purchase prices at $570,000 in Halifax Regional Municipality and East Hants. At $600,000 average, that excludes a meaningful share of single-family homes in Bedford, South End Halifax, and parts of Dartmouth. Condos, townhomes, and properties in Sackville, Cole Harbour, and Fall River fit comfortably within the cap.
5. 5
   Layer federal incentives. FHSA contributions are tax-deductible on the way in, tax-free on the way out. If you haven't opened one yet, do it today—you can contribute $8,000 annually. Even if you're buying this spring, every dollar in the FHSA is a dollar you don't need to pull from savings.

If You're Currently Renting and On the Fence

Housing Minister John White noted in today's announcement that "Nova Scotians told us that in today's rental market, they are struggling to save the down payment to buy a new home." The data supports this. With average one-bedroom rents in Halifax at approximately $1,770/month, renters are paying near-ownership costs without building equity. The 2% program lowers the barrier to transitioning from rent to ownership by roughly $18,000–$20,000 in upfront cash.

But here's the honesty you won't get from the press release: this program helps you get in the door faster, not cheaper. Your mortgage is larger. Your interest rate is higher. Your monthly carrying costs will exceed what you'd pay with a 20% down payment at a market rate. The question is whether you believe home prices in Halifax will appreciate faster than the interest-rate premium you're paying. If yes, buy now. If no, keep saving.

The Honest Limitations

This is the most aggressive first-time buyer policy Nova Scotia has introduced. It's also a pilot program with built-in constraints. Here's what it doesn't solve:

• The $200,000 household income cap is generous compared to prior programs ($145,000 for DPAP), but it still excludes high-earning dual-income couples in professional fields—doctors, lawyers, tech executives—who may be cash-poor despite strong incomes.
• Credit union financing only. You cannot access this through a big bank. For buyers with existing banking relationships, competitive rate shopping, or preference for national lenders, this is a dealbreaker.
• Higher interest rates. The prime + 2% cap (currently 6.45%) is substantially higher than best market rates (3.84% fixed, 3.35% variable). On a $558,600 mortgage over 25 years, the monthly payment difference between 6.45% and 3.84% is approximately $925/month—or $11,100/year. Over 5 years, that's $55,500 in additional interest cost.
• The $570,000 purchase price cap in HRM sits below the $600,000 average, excluding a significant share of single-family detached homes in high-demand areas like Bedford, South End Halifax, and Dartmouth's waterfront neighbourhoods, where prices routinely exceed the cap.
• This is a pilot. There's no guarantee the program continues beyond its initial rollout. If you qualify now, move quickly—pilot programs can close once funding caps are reached.

Final Thoughts

This is a bold move from the Province. The First-time Homebuyers Program fundamentally restructures access to homeownership in Nova Scotia by cutting the required down payment to just 2%—the lowest threshold in the country for an insured mortgage product. Combined with the $200,000 income cap, the $570,000 purchase price cap in HRM, and a stable interest rate environment (Bank of Canada holding at 2.25%), this creates a genuine window for first-time buyers who have been locked out by the down payment barrier.

But let's be clear about what this is and what it isn't. This program helps you get in faster, not cheaper. Your mortgage is larger. Your interest rate is capped at prime + 2%, which is higher than market rates. Your monthly carrying costs will be higher than if you saved 20% and secured a competitive rate from a big bank. The question is whether you believe home prices in Halifax will appreciate faster than the interest premium you're paying—and whether you value homeownership today over financial optimization tomorrow.

Sandra Pike's advice to first-time buyers navigating this decision: run the full cost analysis, not just the down payment math. Compare the total interest cost of a 2% down mortgage at 6.45% to a 5% down mortgage at 3.84%. Factor in Halifax's projected 3% annual price appreciation. Consider your job stability, household income trajectory, and whether you plan to stay in the property for 5+ years. The program works brilliantly for some buyers—and poorly for others.

The next Bank of Canada rate decision is March 18, 2026. Markets are pricing in a hold. If rates stay stable through spring, the window for first-time buyers in Halifax remains wide open. If you qualify for this program, move quickly—pilot programs have funding caps, and once they're reached, the door closes.