First-Time Home Buyers

Buying your first home in Nova Scotia can feel overwhelming, but the right information and available incentives can make the process far more manageable.

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First-Time Home Buyers in Nova Scotia

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Buying a first home is an exciting milestone, but it can also feel complex without the right information. From understanding financing options to navigating incentives and choosing the right property, first-time buyers often face a lot of decisions early in the process.

Nova Scotia offers a range of programs and incentives designed to help make homeownership more accessible, along with a wide selection of homes suited to different lifestyles and budgets. With proper preparation and a clear understanding of the buying process, many first-time buyers are able to move forward with confidence.

This page provides an overview of key considerations, available incentives, and current opportunities for first-time buyers exploring homeownership in Nova Scotia.

How to get the most out of the process

DPAP (for extra down payment help), plus
Provincial HST rebate (if buying new), plus
RRSP HBP and the Home Buyers’ Amount (on their taxes)

Always check current eligibility (income limits, price caps, and timelines) on official provincial and federal sites or with a mortgage professional, because details can change.

Headlines

The Down Payment Assistance Program (DPAP) is one of the most important tools for first-time home buyers in Nova Scotia. It’s designed to bridge the gap for buyers who can afford monthly payments but are struggling to save a full down payment.

Interest‑free loan of up to 5% of the home’s purchase price, to be used only for the down payment.
Maximum loan: generally up to $25,000, with caps that vary by region and purchase price.
You repay it over 10 years, and the home must be in Nova Scotia and used as your principal residence.

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Deep Dive into the Program

For many first-time buyers, the biggest hurdle isn’t the monthly payment – it’s coming up with the lump-sum down payment. The Nova Scotia Down Payment Assistance Program (DPAP) is designed to help bridge that gap so more people can move from renting to owning.

If you’ve been browsing homes for sale in Nova Scotia or properties for sale in Nova Scotia and feeling stuck at the down payment stage, DPAP might be exactly what you need.

What Is DPAP?

The Down Payment Assistance Program is a government-backed, interest-free loan that helps eligible first-time buyers cover the required 5% down payment on a home.
In plain language:

You get help with your down payment in the form of a loan, not a grant.
You do not pay interest on this loan.
You repay it over 10 years in regular instalments.

The goal is simple: support First-Time Home Buyers Nova Scotia who can afford a mortgage but haven’t been able to save the full down payment.

How Much Can You Get?

DPAP typically provides:

Up to 5% of the home’s purchase price as a down payment loan.
Maximum assistance usually capped (commonly cited around $25,000; the province may update this cap over time).

The loan:

Must be used toward your down payment.
Cannot be used for closing costs, legal fees, inspections, or moving expenses.

This means if you’re looking at homes for sale in Nova Scotia in the $300,000–$450,000 range, DPAP can be a major boost, sometimes covering the entire minimum down payment.

Who can qualify?

While exact criteria can be updated by the province, typical eligibility for DPAP looks like this:

You are a first-time home buyer (usually meaning you haven’t owned and lived in a home in the last few years under the program’s definition).
You are pre-approved for an insured mortgage from an approved lender.
Your household income is below a specified maximum (commonly quoted around $145,000 total household income).
You have a good credit history (for example, a credit score in the mid‑600s or higher).
You are a Canadian citizen or permanent resident, and you live in Nova Scotia.
The home is in Nova Scotia, will be your primary residence, and is below the program’s maximum purchase price limit (the cap is higher in HRM and some surrounding areas and lower in other parts of the province).

If you’re seriously searching properties for sale in Nova Scotia and meet most of these points, it’s worth checking your eligibility directly with the province or a mortgage professional.

how repayment works...

DPAP is a loan, so you do pay it back - but without interest.

Key repayment features:

Interest-free over a 10-year term.
Payments usually start shortly after you take possession of the home.
You can generally repay early with no penalty if you choose.
If you sell, refinance, or move out of the property before the 10 years is up, any remaining balance typically becomes due at that time.

When planning your budget as a first-time home buyer in Nova Scotia, you’ll want to think of DPAP as a small, separate payment alongside your mortgage, property tax, and utilities.

Example: using DPAP on a $400k Home

Let’s walk through a simple example to show how this can look in real life. Imagine you’ve found a home for sale in Nova Scotia with a purchase price of $400,000.

Minimum Down Payment Required

In Canada, the minimum down payment for a $400,000 home is:

5% of $400,000 = $20,000

So, you need at least $20,000 as a down payment.

How DPAP Could Help

Under DPAP, you may qualify for up to 5% of the purchase price as an interest-free loan:

• 5% of $400,000 = $20,000

In this scenario, DPAP could potentially cover the entire minimum down payment of $20,000.

What this means in practice:

You don’t need to come up with that full $20,000 yourself.
You still must qualify for your mortgage based on income, debt, and credit.
You must still cover closing costs (legal fees, deed transfer tax if applicable, inspections, etc.) from your own funds.

Estimated DPAP Repayment

If you borrow the full $20,000 from DPAP and repay it over 10 years interest-free:

$20,000 ÷ 10 years = $2,000 per year
$2,000 ÷ 12 months ≈ $167 per month

So, in this example, your overall housing budget would include:

Your regular mortgage payment on the $400,000 purchase price (minus down payment).
About $167/month toward repaying the DPAP loan.

For many First-Time Home Buyers Nova Scotia, this is far more manageable than trying to save $20,000 in cash before ever stepping into the market.

How DPAP Fits into your home search

When you’re browsing homes for sale in Nova Scotia or properties for sale in Nova Scotia:

Talk to your mortgage broker or lender early and ask if you might qualify for DPAP.
Get a pre-approval and confirm what price range works for your income and debts.
Factor the potential DPAP repayment into your monthly budget, just as you would property taxes and heating.

For many buyers, the Down Payment Assistance Program is the missing piece that turns a “someday” dream into an actual closing date.

Final Thoughts

The Nova Scotia Down Payment Assistance Program is a powerful option for first-time buyers who are mortgage-ready but short on savings. When combined with a solid pre-approval and realistic expectations on price, it can help you move from looking at homes for sale in Nova Scotia online to opening the door to a place of your own.

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Headlines

If you’re considering new construction or a newly built home, the Nova Scotia First-time Home Buyers’ Rebate can reduce the provincial tax you pay.

Offers a rebate on the provincial portion of HST for qualifying newly built homes (not resales).
The rebate can be up to $3,000, depending on the purchase price and eligibility.
You must be a first-time buyer and the home must be your primary residence.

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Deep Dive into the Program

The First-Time Home Buyers’ Rebate is a nice little “thank you” from the Province of Nova Scotia for buying a newly built home as your first place. It doesn’t lower your mortgage payment directly, but it can put real money back in your pocket after closing.

First-Time Home Buyers’ Rebate (Nova Scotia)

For First-Time Home Buyers Nova Scotia, every dollar counts. Between the down payment, closing costs, and moving expenses, the upfront price tag can feel overwhelming—especially if you’re looking at new construction homes for sale in Nova Scotia.

The First-Time Home Buyers’ Rebate helps by refunding part of the provincial HST you pay on a newly built home, putting up to $3,000 back in your hands after the purchase.

What is the First-Time Home Buyers' Rebate?

This rebate is a provincial program that refunds a portion of the provincial HST charged on a newly built home in Nova Scotia. It is not for resale properties—it’s specifically for new construction.
In simple terms:

You buy or build a new home in Nova Scotia.
You pay HST at closing.
You apply to the province.
You can get up to $3,000 of the provincial HST refunded.

For buyers shopping new-build properties for sale in Nova Scotia, this is one of the key incentives to know about.

How much is the Rebate?

The rebate is calculated as a percentage of the provincial portion of HST:

The amount is 18.75% of the provincial portion of the HST,
Capped at $3,000 maximum.

In many typical first-time buyer situations, you’ll be close to or at that $3,000 cap, especially on full-sized new homes rather than very small units.

Who is Eligible...

You may qualify for the First-Time Home Buyers’ Rebate if:

The home is newly built (not a resale) and located in Nova Scotia.
The home will be your primary residence.
You are a first-time home buyer under the program definition, meaning:
- It’s the first house you’ve owned and occupied in Canada in the last 5 years, or
- It replaces a previous home that was involuntarily destroyed in the last 5 years.
You apply within the time limit (generally up to 24 months from the relevant date, such as deed transfer, occupancy permit, or bill of sale depending on the type of new home).

The rebate applies to:

Newly built homes on land you already owned.
New homes purchased with land.
Newly built condo units.
Certain manufactured (mobile) homes and co‑op housing shares.

It does not apply to major renovations or converting an existing building into condos.

How and when Do YOU APPLY

You don’t get this automatically - you must apply to the Province of Nova Scotia.

Typically you will need:

Your purchase and sale agreement.
Your deed or bill of sale (depending on the property type).
Your statement of adjustments showing the HST breakdown.
For self-built homes: permits and a worksheet of construction costs.

You usually have 24 months from:

The date of occupancy permit (if you built on your own land),
The date on the deed (if you bought a new home with land or a condo), or
The date of the bill of sale (for manufactured homes or co‑ops).

There is no fee to apply for the rebate

Example: New $400,000 Home and the Rebate

Let’s walk through a simple, approximate example for a first-time buyer purchasing a newly built $400,000 home in Nova Scotia.

Step 1: HST on a New Home.

On a new home, HST is applied to the purchase price. The exact breakdown between federal and provincial components is handled in your closing documents, but a portion of what you pay is the provincial share.

The First-Time Home Buyers’ Rebate gives you back:

18.75% of the provincial portion of HST,
Up to a maximum of $3,000.

On a typical $400,000 new-build, the provincial portion of HST is high enough that you’ll usually hit the $3,000 cap. So practically speaking, many First-Time Home Buyers Nova Scotia purchasing a $400,000 new home can expect a $3,000 rebate, assuming they meet all eligibility criteria and apply on time.

Step 2: What Does $3,000 Mean in Real Life?

That $3,000 could:

Help cover part of your closing costs (legal fees, title insurance, movers).
Go toward furnishing your new place.
Act as a small cushion for those inevitable “new home surprises” after move‑in.

It doesn’t reduce your mortgage directly, but it lowers your overall net cost of buying new construction and makes those new homes for sale in Nova Scotia a little easier to manage financially.

HOW this fits into your buying strategy

If you’re a first-time buyer comparing resale vs new homes for sale in Nova Scotia, keep this in mind:

Resale homes may be cheaper upfront, but do not qualify for this provincial HST rebate.
Newly built properties for sale in Nova Scotia may have a slightly higher sticker price, but you can:
Use this First-Time Home Buyers’ Rebate (up to $3,000), and
Potentially combine it with other incentives (like federal GST/HST new housing rebates) where applicable.

For many First-Time Home Buyers Nova Scotia, that combination can narrow the gap between new and resale options.

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Headlines

The RRSP Home Buyers’ Plan (HBP) is one of the most powerful tools available to first-time home buyers in Nova Scotia, because it lets you turn your own retirement savings into part of your down payment - without paying tax on the withdrawal up front.

Withdraw up to $60,000 per person (max $120,000 for a couple) from RRSPs tax‑free to put toward your first home.
You get a 2‑year grace period, then repay the amount over 15 years through your tax return.

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Deep Dive into the Program

For First-Time Home Buyers Nova Scotia, saving a down payment can feel like the hardest part of buying. The federal RRSP Home Buyers’ Plan (HBP) helps by letting you borrow from yourself: you can withdraw money from your RRSP to put toward a qualifying home, then pay it back over time.

This is especially useful if you’ve been diligently contributing to your RRSP while renting and are now seriously looking at homes for sale in Nova Scotia.

How the HBP works

Under the Home Buyers’ Plan, eligible buyers can:

Withdraw up to $60,000 per person from an RRSP tax-free to use toward buying or building a qualifying home in Canada.
Couples can withdraw up to $120,000 total if each person has enough RRSP funds and qualifies.
The withdrawn money must have been in the RRSP for at least 90 days before you take it out.

Normally, RRSP withdrawals are taxed as income. With the HBP, as long as you follow the rules, there’s no tax on the withdrawal at the time you take it out.

Who qualifies as a "First-time home buyer"?

To use the HBP, you generally must:

Be considered a first-time home buyer, meaning you have not owned a home (or lived in a spouse/partner’s owned home) as your principal residence in the last 4 years.
Be a resident of Canada at the time of withdrawal and until you buy or build the home.
Have a written agreement to buy or build a qualifying home in Canada.
Intend to live in the home as your principal residence within 1 year of buying or building it.

There are special provisions if you’re helping a related person with a disability buy or build a home, but most First-Time Home Buyers Nova Scotia will be using it for their own primary residence.

repaying your rrsp under the hbp

The HBP is a loan from your RRSP, so you have to put the money back:

You have up to 15 years to repay what you withdrew.
Normally you must repay at least 1/15 of the withdrawn amount each year once repayment starts.
For withdrawals made between January 1, 2022 and December 31, 2025, repayment generally starts after a longer grace period (often year 5 instead of year 3), giving recent first-time buyers a bit more breathing room.
If you don’t repay the minimum in a given year, that year’s required amount is added to your taxable income.

Importantly, HBP repayments do not count as new RRSP contributions, so they don’t give you a new tax deduction - repayment is just putting back what you borrowed

Example: Using the HBP for a $400,000 Home

Here’s a simple example to show how the Home Buyers’ Plan can help when you’re looking at homes for sale in Nova Scotia around $400,000.

Step 1: Minimum Down Payment

On a $400,000 home in Canada, the minimum down payment is:

5% of $400,000 = $20,000

So you need at least $20,000 in down payment to buy.

Step 2: Using the HBP

Let’s say you qualify for the HBP and have $30,000 in your RRSP.

You decide to withdraw $20,000 under the HBP to cover the entire minimum down payment on a $400,000 home in Nova Scotia:

You fill out the CRA forms and withdraw $20,000 from your RRSP for the purchase.
There’s no tax withheld on that $20,000 withdrawal because it’s done under the HBP.
You now have the full minimum down payment needed for many properties for sale in Nova Scotia at the $400,000 price point.

Step 3: Repayment

Because you withdrew $20,000:

Over 15 years, your minimum annual repayment is $20,000 ÷ 15 = about $1,333 per year.
You make that repayment each year as a designated HBP repayment when you file your tax return, by contributing back into your RRSP and marking it accordingly.
If you skip a year’s repayment, that year’s $1,333 is added to your taxable income.

In practice, this means your RRSP is helping you get into the market sooner, while you gradually rebuild your retirement savings over time.

Pros and Cons for the first-time home buyers in NOva Scotia

Advantages:

Lets you boost your down payment using money you already saved.
Can help you reach the 5% minimum down payment or move closer to 20% (which can reduce mortgage default insurance costs).
Especially helpful if you’re trying to compete for desirable homes for sale in Nova Scotia and want a stronger down payment position.

Things to consider:

Money you withdraw stops growing tax-sheltered until you repay it, so there’s an opportunity cost for your long-term retirement savings.
You need to be disciplined about making yearly repayments to avoid extra taxable income.

For many First-Time Home Buyers Nova Scotia, the trade-off is worth it: using the HBP can turn years of RRSP saving into a practical path to homeownership—especially when combined with other incentives like the provincial Down Payment Assistance Program or the First-Time Home Buyers’ Rebate on new builds.

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For First-Time Home Buyers Nova Scotia browsing homes for sale in Nova Scotia, this credit helps offset closing costs like legal fees and inspections without any repayment required.

Non‑refundable tax credit on your income tax return: claim up to $10,000, which equals up to $1,500 in tax savings.
Available to qualifying first‑time buyers (or certain buyers with disabilities).

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Deep Dive into the Program

The Home Buyers’ Amount (also called the First-Time Home Buyers’ Tax Credit) is a straightforward federal non-refundable tax credit that puts up to $1,500 back in your pocket if you’re buying your first home. It’s not a loan or rebate you apply for upfront—it’s claimed on your tax return after you buy.

What is the home buyers' amount?

This is a federal tax credit available to eligible first-time home buyers across Canada, including Nova Scotia. You claim $10,000 on your tax return, which at the federal rate of 15% equals $1,500 off your federal taxes owed.

Key points:

It’s non-refundable, so it reduces your tax bill to $0 but doesn’t give cash back if you owe no tax.
You can split it with a spouse or common-law partner (max combined $10,000 claim).
No application needed—just claim it when filing taxes for the year you bought the home.

It’s perfect for First-Time Home Buyers Nova Scotia who’ve just closed on properties for sale in Nova Scotia and want to ease the financial hit of moving in.

Who qualifies?

You (or your spouse/common-law partner) can claim the Home Buyers’ Amount if:

You bought a qualifying home in Canada (house, condo, townhouse, mobile home, etc.—new or resale).
The home becomes your principal residence within 1 year of buying or building it.
You’re a first-time home buyer: You (and your spouse/partner) did not live in a home you owned in the year of purchase or the previous 4 years.
Exceptions exist for buyers with disabilities or buying for a disabled relative.

The home can be anywhere in Canada, making it fully available to those shopping homes for sale in Nova Scotia.

How do you claim it?

Claiming is easy! No forms or pre-approval:

Enter $10,000 (or your share if splitting) on Line 31270 of your tax return for the year you acquired the home.
The CRA calculates the 15% credit ($1,500 max) automatically.
Keep records like your purchase agreement or deed in case of review.

File your taxes as usual - the credit reduces what you owe right then.

Example: claiming on a $400,000 Home purchase

Say you’re a First-Time Home Buyer Nova Scotia who bought a $400,000 home in 2025 (resale or new) and it’s now tax time.

Your Scenario

Purchase closed in 2025, so you file your 2025 tax return in 2026.
You qualify as a first-time buyer (no home ownership in the last 4+ years).
You owe $3,000 in federal tax before credits.

The Credit

Claim $10,000 on Line 31270.
15% federal rate × $10,000 = $1,500 tax savings.
Your tax bill drops from $3,000 to $1,500.

Real-Life Impact

That $1,500 could cover:

Part of your lawyer’s fees (~$1,200–$1,800 on a $400k purchase).
A home inspection (~$500).
Moving costs or small setup expenses.

If buying with a partner, you could each claim $5,000 for the full $1,500 benefit (combined max $10,000).

It doesn’t change your down payment or mortgage, but it’s free money back after closing on homes for sale in Nova Scotia.

How if fits your home search strategy

When viewing properties for sale in Nova Scotia:

This credit works on any qualifying home—urban condos, rural houses, HRM townhomes.
Combine it with other incentives like DPAP (down payment loan), the provincial HST rebate (new builds), or HBP (RRSP withdrawal) for maximum savings.
It’s “set it and forget it”—just remember to claim it the year after purchase.

For First-Time Home Buyers Nova Scotia, the Home Buyers’ Amount is low-effort relief that makes homeownership feel a bit less sticker-shock-y.

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Frequently Asked Questions About Buying a Home in Nova Scotia

Buying your first home can come with a lot of questions. The answers below address some of the most common topics first-time home buyers ask when learning how to buy a home in Nova Scotia, from understanding eligibility and assistance programs to budgeting and next steps in the buying process.

Buying a home in Nova Scotia as a first-time buyer typically starts with understanding your budget, obtaining mortgage pre-approval, and reviewing the step-by-step home buying process. From there, buyers search for suitable properties, make an offer, complete inspections and financing conditions, and finalize the purchase through a lawyer. Understanding the process early helps reduce surprises and improve decision-making.
In most cases, a first-time home buyer is someone who has never owned a home before. In Nova Scotia, an individual is generally NOT considered a first-time home buyer if they have lived in a home owned by a spouse or common-law partner as a primary residence within the past four years, regardless of whether their name was on the title. Eligibility can vary depending on the specific program or incentive, so it’s important to review the requirements tied to any first-time home buyer assistance or benefits being considered.
Yes, there are programs and incentives designed to help first-time home buyers in Nova Scotia, which may include rebates, tax credits, or financing options. These programs are intended to reduce upfront costs or improve affordability, though eligibility and availability can change. Reviewing current first-time home buyer assistance options early in the process is recommended.
While not legally required, mortgage pre-approval is strongly recommended for first-time home buyers. Pre-approval helps clarify how much you may be able to borrow, what your monthly payments could look like, and what price range is realistic before starting a home search. It can also strengthen an offer when purchasing a home.

Read the comprehensive guide on mortgage pre-approval here.
The minimum down payment required to buy a home in Nova Scotia depends on the purchase price and mortgage type. First-time buyers should also budget for closing costs, inspections, and other expenses in addition to the down payment. Understanding these costs upfront helps buyers plan more confidently.
In addition to the purchase price, first-time home buyers in Nova Scotia should budget for closing costs such as legal fees, deed transfer tax, inspections, and adjustments. Ongoing costs like property taxes, insurance, and maintenance should also be considered when planning affordability.

For more information, read our helpful guide on closing costs, complete with examples.
Yes, first-time home buyers can attend open houses without a REALTOR®. However, understanding how representation works and when professional guidance may be helpful can make the buying process clearer, especially for those new to purchasing real estate.

For more information on open houses and what to expect, review the detailed guide available here.

First-Time Home Buyers

First-Time Home Buyers in Nova Scotia

How to get the most out of the process

Headlines

Deep Dive into the Program

What Is DPAP?

How Much Can You Get?

Who can qualify?

how repayment works...

Example: using DPAP on a $400k Home

How DPAP Fits into your home search

Final Thoughts

Headlines

Deep Dive into the Program

First-Time Home Buyers’ Rebate (Nova Scotia)

What is the First-Time Home Buyers' Rebate?

How much is the Rebate?

Who is Eligible...

How and when Do YOU APPLY

Example: New $400,000 Home and the Rebate

HOW this fits into your buying strategy

Headlines

Deep Dive into the Program

How the HBP works

Who qualifies as a "First-time home buyer"?

repaying your rrsp under the hbp

Example: Using the HBP for a $400,000 Home

Pros and Cons for the first-time home buyers in NOva Scotia

Headlines

Deep Dive into the Program

What is the home buyers' amount?

Who qualifies?

How do you claim it?

Example: claiming on a $400,000 Home purchase

How if fits your home search strategy

Frequently Asked Questions About Buying a Home in Nova Scotia

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