First Time Home Buyers Incentives & Programs in Nova Scotia

Nova Scotia Home Finder
5 days ago
3 min read

Updated: 4 days ago

Nova Scotia offers a range of first-time home buyer incentives and programs designed to make homeownership more accessible, reduce upfront costs, and help buyers build equity earlier. Below is a thorough guide to the main programs available in 2025 and their advantages.

Nova Scotia Down Payment Assistance Program (DPAP) 

This provincial program provides interest-free loans of up to 5% of your home’s purchase price, capped at $25,000, to be used toward your down payment. The loan is repayable over 10 years and helps buyers who may not have enough saved for a full down payment.

Eye-level view of a cozy Nova Scotia home with a welcoming front porch — A typical first-time buyer home in Nova Scotia, featuring a modest front porch and garden

Advantages:

• No interest charged, reducing overall costs compared to commercial loans.

• Enables buyers to enter the market sooner, without waiting years to save a sufficient down payment.

• Encourages buyers to choose Nova Scotia for long-term residence, as the property must become your primary home.

First-Time Home Buyers’ Rebate Program

Nova Scotia’s rebate program offers up to $3,000 on the provincial portion of the HST when you buy a newly constructed home. To qualify, the home must be your principal residence and must not be a substantially renovated property.

Advantages:

Directly reduces the financial burden of new home costs, especially valuable for buyers investing in new builds.
Increases affordability and lets new homeowners direct funds toward other needs such as furnishings and improvements.

Federal Programs Available to Nova Scotians

RRSP Home Buyers’ Plan (HBP):

Allows you to withdraw up to $60,000 from your RRSP tax-free to use toward your home’s purchase, provided you repay the amount over 15 years. 

Advantages:

Access to large upfront funds without the risk of early withdrawal taxes or penalties.
Flexible repayment schedule, which eases cash flow during early years of homeownership.

First-Time Home Buyers Tax Credit (HBTC): 

A non-refundable federal tax credit providing up to $1,500 back to help with closing costs, legal fees, and land transfer taxes. 

Advantages:

Helps offset the expenses of purchasing, making the process more financially manageable.

First-Time Home Buyer Incentive (FTHBI): 

A shared-equity mortgage program that contributes 5–10% of the purchase price, lowering monthly payments. The government shares ownership equity, to be repaid if you sell. 

Advantages:

Significantly drops the size of your regular mortgage payments.
No ongoing interest or monthly repayment until you sell or pay off your home.
Frees up your budget for renovations, savings, or unexpected costs.

Additional Advantages Across Programs:

Many programs have flexible criteria for singles, families, and those with specific needs, including additional benefits for energy-efficient homes or specific communities.
Some regions within Nova Scotia may offer further incentives for buyers in certain income brackets or designated growth areas.

High angle view of a new home construction site in Nova Scotia — New home construction in Nova Scotia, showing foundation and framing stages

Summary Table: Nova Scotia First-Time Buyer Incentives

Practical Tips for First Time Buyers in Nova Scotia

Navigating these programs can be easier with some practical advice.

Research eligibility early: Each program has specific rules. Confirm you qualify before making offers.
Work with a knowledgeable real estate agent: Agents familiar with first time buyer programs can guide you through paperwork and deadlines.
Plan your budget carefully: Factor in closing costs, property taxes, and ongoing maintenance.
Consider energy-efficient homes: Programs like CMHC’s Green Home offer financial benefits for energy-saving features.
Apply for rebates and credits promptly: Some require applications within a certain time after purchase.