Buying your first home can feel overwhelming, especially when you start thinking about the down payment, closing costs, legal fees, inspections and everything else that comes with purchasing a home.
The good news is that you may not need a large amount of savings to get started.
Several programs are available to first-time buyers in Nova Scotia and across Canada that can help make homeownership more achievable. In some situations, buyers may be able to purchase a home with as little as 2% down, while other programs can help you build your down payment or access funds you already have in registered accounts.
Here’s what Nova Scotia first-time buyers should know.
For most buyers, the minimum down payment depends on the purchase price.
Under the standard federal rules:
If you put less than 20% down, mortgage default insurance is generally required.
A $400,000 home would normally require a minimum down payment of:
$400,000 × 5% = $20,000
But here’s where things get interesting for Nova Scotia buyers.
In February 2026, the Province of Nova Scotia launched a new First-time Homebuyers Program designed specifically to help eligible Nova Scotians overcome the down payment barrier.
Under the program, eligible buyers may purchase a home with only 2% down.
For example:
$400,000 purchase price with 2% down = $8,000
That’s significantly less than the standard $20,000 minimum.
The program is delivered in partnership with Atlantic Central and participating credit unions across Nova Scotia.
There are eligibility requirements. Buyers must generally:
There are also maximum purchase prices of $570,000 in Halifax Regional Municipality and East Hants and $500,000 elsewhere in Nova Scotia.
Previous homeowners who haven’t owned a home in the past four years may also qualify.
Discuss this program with a participating credit union or mortgage professional before assuming a traditional 5% down payment is required.
Another option many first-time buyers may not know about is the Nova Scotia Down Payment Assistance Program.
This program provides an interest-free loan of up to 5% of the purchase price to help eligible first-time buyers with their down payment. The loan is repayable over 10 years.
Some of the requirements include:
The property must also be your primary residence and fall within the program’s applicable purchase-price limits.
This is a fantastic program to discuss with a mortgage professional if you are having trouble coming up with the down payment required to get into the housing market.
If you’re planning to buy your first home but aren’t quite ready yet, a First Home Savings Account (FHSA) can be one of the most valuable tools available.
An FHSA allows eligible first-time buyers to save specifically for their first home while receiving tax benefits.
You can contribute:
Up to $8,000 per year, with a $40,000 lifetime contribution limit.
Contributions can generally be deducted from your taxable income, and qualifying withdrawals used to purchase a first home are tax-free.
One important point: you don’t start accumulating FHSA room until you open your first FHSA. So if you’re eligible and thinking about buying in the next few years, it’s worth speaking with your financial institution about opening one.
If you’ve been contributing to an RRSP through work or on your own, you may already have money available to help with your first home.
The federal Home Buyers’ Plan (HBP) allows eligible buyers to withdraw up to $60,000 from their RRSP to purchase or build a qualifying home.
The money must be repaid to your RRSP over the applicable repayment period.
One major advantage is that eligible buyers can potentially use both an FHSA and the Home Buyers’ Plan for the same home, provided all applicable conditions are met.
For some buyers, the fastest path to homeownership may be receiving financial help from family.
Depending on the lender and mortgage program, a gift from an immediate family member may be acceptable as a source of down payment funds.
This needs to be discussed with your mortgage professional before the money is transferred, as lenders typically require documentation showing where the funds came from and confirming that the money is a genuine gift rather than a repayable loan.
One of the biggest misconceptions among first-time buyers is that you need 20% down.
You don’t. A buyer can potentially purchase a home with considerably less than 20% down. The trade-off is that a down payment below 20% generally requires mortgage default insurance.
The important thing is to look at the entire monthly payment and overall cost of ownership, rather than waiting years to save 20% if a smaller down payment makes sense for your financial situation.
There are a few other expenses to be aware of when purchasing a property:
But with the help of some of the programs mentioned above, homeownership may be much more attainable than you originally thought. You may not need a large amount of savings to take that first step toward owning your own home.
If you’re thinking about buying your first home but aren’t sure where to start, let’s have a conversation.
I can help you better understand the home-buying process, explore properties that fit within your budget, and connect you with trusted mortgage and financial professionals who can help determine which programs you may qualify for.
Don’t wait until you have the “perfect” amount saved to start planning. The first step is simply finding out what’s possible.
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