New First-Time Homebuyers Program in Nova Scotia: What It Means for You

Buying your first home is a huge milestone — but in today’s market, saving up for a down payment can feel like an impossible hurdle. That’s why a new pilot program just announced by the Government of Nova Scotia could make a big difference for first-time buyers, especially here in the Annapolis Valley.

The First-time Homebuyers Program helps Nova Scotians get into their first home with a much smaller down payment — just 2% of the purchase price — and without the added cost of mortgage insurance. It’s designed to make homeownership more affordable and achievable, even if you're just getting started financially.

If you’ve been dreaming about buying your first home but felt held back by the upfront costs, this program could be exactly what you’ve been waiting for. In this post, I’ll walk you through how it works, who’s eligible, and what it means for first-time buyers in the Annapolis Valley — with a real-life example to show how much you could save.

Let’s break it down in simple terms.

What Is the First-time Homebuyers Program?

The First-time Homebuyers Program is a new pilot project launched by the Province of Nova Scotia in partnership with local credit unions. The goal is simple: help more Nova Scotians become homeowners sooner by lowering the upfront costs that usually come with buying a home.

Here’s what makes this program different:

• Only 2% down payment required (instead of the usual 5% minimum)

• No mortgage insurance costs (normally required when putting less than 20% down)

• Backed by a government guarantee, which replaces the need for traditional mortgage insurance

• Offered only through participating credit unions, not big banks

This means lower up-front costs, smaller monthly payments, and a faster path to owning your first home.

It’s designed specifically for first-time buyers who might be struggling to save enough to meet traditional down payment requirements. By reducing the barrier to entry, the program opens the door to homeownership for more Nova Scotians — especially in regions like the Annapolis Valley, where home prices are still within reach.

What’s the Real Difference? A $350,000 Home Example

Let’s look at a real-world example to see how this new program could affect your costs.

We’ll compare buying a $350,000 home the traditional way versus using the new program.

Scenario 1: Traditional Mortgage (5% Down + Mortgage Insurance)

Right now, most first-time buyers in Nova Scotia who put down less than 20% are required to buy mortgage insurance through Canada Mortgage and Housing Corporation (CMHC) or another insurer.

Here’s what that looks like:

• Purchase Price: $350,000

• Minimum Down Payment (5%): $17,500

• Mortgage Amount Before Insurance: $332,500
  
  

Because the down payment is under 20%, mortgage insurance is required. At 5% down, the insurance premium is typically about 4% of the mortgage amount.

• Estimated CMHC Insurance Premium: ~$13,300
  (This gets added to your mortgage — you don’t pay it upfront in cash.)

• Total Mortgage After Insurance: ~$345,800
  

Now let’s estimate payments using a 25-year mortgage at 5.5% interest (for illustration only):

• Estimated Monthly Payment: ~$2,116

• Total Paid Over 25 Years: ~$635,000
  

Important: That total includes paying interest on the insurance premium, which increases the true long-term cost.

Scenario 2: New First-time Homebuyers Program (2% Down, No Insurance)

Under the new program backed by the Government of Nova Scotia, qualified buyers can put down just 2% — and do not need to pay for mortgage insurance.

Here’s the same $350,000 home:

• Purchase Price: $350,000

• Down Payment (2%): $7,000

• Mortgage Amount: $343,000

• Mortgage Insurance: $0
  

Because the province provides a guarantee to the lender, you skip the insurance premium entirely.

Using the same 25-year mortgage at 5.5%:

• Estimated Monthly Payment: ~$2,101

• Total Paid Over 25 Years: ~$621,000
  

What’s the Big Takeaway?

Here’s what changes in simple terms:

Upfront Savings

• Traditional minimum down payment: $17,500

• New program down payment: $7,000
  That’s $10,500 less you need to save before buying.
  
  

Insurance Savings

• Traditional CMHC insurance added to mortgage: ~$13,300

• New program insurance cost: $0
  

Estimated Long-Term Savings

• Over 25 years, you could pay $14,000 or more less in total mortgage costs, depending on interest rates and your exact terms.
  
  

Why This Matters

For many first-time buyers, the biggest challenge isn’t the monthly payment — it’s coming up with the down payment and qualifying for the loan.

This program:

• Lowers the cash you need upfront

• Removes the extra cost of mortgage insurance

• Makes it easier to get into the market sooner instead of waiting years to save
  

For buyers in the Annapolis Valley, where many homes fall under the program’s price limits, this could be the difference between continuing to rent and finally owning your first home.

Who Qualifies for the Program?

If you’ve never bought a home before and you live in Nova Scotia, there’s a good chance you could qualify for this new program — especially if you have stable income and a decent credit score.

Here’s a simple breakdown of the eligibility criteria:

You must:

• Be a first-time homebuyer
  (This means you’ve never owned a home before, anywhere in the world.)

• Be a Canadian citizen or permanent resident
  (You must also live full-time in Nova Scotia.)

• Have a total household income under $200,000

• Have a credit score of 630 or higher
  (If you don’t have a credit history, some credit unions may consider other factors like rent or bill payment history.)

• Be able to:

• Pay 2% of the purchase price as a down payment

• Cover your closing and legal costs (e.g. lawyer, land transfer tax, home inspection)

• Pass a mortgage stress test (to show you can afford the payments)
  

Property Requirements

The home you want to buy must also meet a few criteria:

• It must be in Nova Scotia

• It must be your primary residence — not a rental, cottage, or seasonal property

• The purchase price must be:

• $570,000 or less in Halifax Regional Municipality and East Hants

• $500,000 or less in the rest of the province (including the Annapolis Valley)
  

If you're not sure whether you qualify, the best step is to speak with a participating credit union. Morgan can also help you connect with someone locally who’s familiar with the program and what lenders are looking for.

What Kind of Homes Are Eligible?

The First-time Homebuyers Program isn’t just about who qualifies — it also matters what kind of home you’re buying.

Here’s what you need to know about the types of homes that are eligible:

The home must:

• Be located in Nova Scotia

• Be your primary residence
  (You have to live there full-time — rental properties, cottages, and vacation homes don’t qualify.)

Price limits:

To make sure the program supports affordable homeownership, there are maximum purchase prices depending on where in the province you're buying:

• Up to $570,000 if the home is in:

• Halifax Regional Municipality (HRM)

• East Hants
  

• Up to $500,000 for homes in:
  

  • All other areas of Nova Scotia — including the Annapolis Valley
    

This is great news for buyers in the Valley, where the average home price is typically below $500,000. It means a large portion of the local market will be within reach for first-time buyers using this program.

Where Do You Apply?

Unlike most mortgage programs that are available through big banks and online lenders, the First-time Homebuyers Program is only available through participating credit unions in Nova Scotia.

You won’t apply through the government — instead, everything is handled directly through the credit union during your mortgage application.

How to Apply:

• Contact a participating credit union in your area

• They’ll walk you through the mortgage pre-approval process and confirm whether you qualify

• If you’re approved, they’ll handle all the paperwork — you don’t need to submit anything to the government separately
  
  

Participating Credit Unions include:

• Valley Credit Union (perfect for buyers in the Annapolis Valley)

• East Coast Credit Union

• iNova Credit Union

• Coastal Financial Credit Union

• Sydney Credit Union

• Credit Union Atlantic

• Mosaik Credit Union

• Nova Scotia Teachers Credit Union (Teachers Plus)

• St. Joseph's Credit Union

• Glace Bay Central Credit Union

• Caisse populaire de Clare
  
  

You may also be able to apply with the help of a mortgage broker, as long as they work with one of the credit unions offering the program.

If you’re not sure where to start, Morgan can connect you with trusted local lenders who are already offering this program — and help you get pre-approved so you’re ready to start house hunting with confidence.

What This Means for First-Time Buyers in the Annapolis Valley

If you’re thinking about buying your first home in the Annapolis Valley, this program could make the process a whole lot easier — and faster.

The Valley is known for its affordable home prices, strong communities, and beautiful scenery. Many homes in this area are already priced well under the $500,000 cap, which means more buyers will qualify for the program and find homes that fit the budget.

Here’s what this looks like in real terms:

Let’s say you’re looking at a home in Kentville or Middleton listed at $375,000.

Under the old system, you’d need:

• At least $18,750 for a 5% down payment

• An additional $13,000+ in mortgage insurance added to your loan

• Extra closing costs on top of that
  

With the First-time Homebuyers Program:

• You’d only need $7,500 down

• You’d avoid mortgage insurance completely

• You could potentially save $15,000 or more over the life of your mortgage
  

Why this matters now:

• Housing prices are still within reach here — but they’re not staying that way forever

• If you’ve been waiting to save a full down payment, this could move your timeline up by months or even years

• This program makes the Annapolis Valley even more attractive for first-time buyers looking for space, community, and value
  

Morgan works with buyers all across the Valley — from Wolfville to Berwick to Greenwood — and can help you find homes that qualify for this program, connect with the right lenders, and guide you every step of the way.

How Morgan Can Help

Navigating your first home purchase can feel overwhelming — especially when you're trying to understand a new mortgage program, get pre-approved, and find the right home, all at once.

That’s where Morgan comes in.

As a local REALTOR® with deep knowledge of the Annapolis Valley market, Morgan works with first-time buyers every day and understands the unique challenges and opportunities that come with buying your first home here.

Here’s how Morgan can help you make the most of this program:

Find eligible homes
Morgan knows which properties fall under the program’s $500,000 cap and can help you spot great options that meet your needs and budget.

Connect you with credit unions
Not sure where to apply? Morgan has relationships with participating credit unions and local mortgage brokers who understand the program and can help you get started.

Guide you through every step
From pre-approval to keys in hand, Morgan will walk you through the process, explain what to expect, and make sure no detail is missed.

Local knowledge you can trust
Whether you're relocating to the Valley or moving out of a rental, Morgan can help you choose the right neighbourhood, understand property values, and make a confident decision.

Thinking about taking the first step? Reach out for a no-pressure conversation — even if you're just exploring your options. The sooner you understand what’s possible, the sooner you can move toward homeownership.

Frequently Asked Questions (FAQs)

Can I use this program to buy a newly built home?

Yes — as long as the home is located in Nova Scotia, will be your primary residence, and falls within the price limits ($500,000 or less in most of the province, $570,000 in HRM and East Hants), new construction is eligible.

What if I’ve owned a home before, but not recently?

You must be a true first-time homebuyer to qualify — meaning you’ve never owned a home before, in Canada or anywhere else. If you’ve previously owned property, even years ago, unfortunately you’re not eligible.

Can I use gifted funds for the down payment?

Yes, most credit unions will allow gifted down payments from immediate family members — but you’ll need proper documentation. Morgan and your lender can walk you through this.

Do I have to stay with the credit union for my full mortgage term?

No. You can switch lenders when your mortgage comes up for renewal. But keep in mind: if you move your mortgage to a bank or other lender, you’ll likely have to get traditional mortgage insurance at that point, since the government’s guarantee doesn’t transfer.

Can I get pre-approved before finding a home?

Absolutely — and it’s a smart move. Pre-approval through a participating credit union lets you know how much you can afford, shows sellers you’re serious, and helps you shop with confidence.

What if I don’t have a credit history?

If your credit score is below 630 or you don’t have an established credit history, some credit unions may look at other indicators — like rent, utility, or phone bill payments — to assess your creditworthiness. It’s best to speak directly with a lender to see what's possible.

Got other questions? Morgan is happy to chat with you or connect you with a mortgage advisor who can help. You're not expected to figure this out alone.

Is This Your Chance to Become a Homeowner?

If you’ve been watching the housing market and wondering how you’ll ever save enough to buy your first home, this new program could be the opportunity you’ve been waiting for.

With just a 2% down payment, no mortgage insurance, and support from trusted local credit unions, Nova Scotia’s First-time Homebuyers Program is designed to help people just like you get into the market — sooner and more affordably.

And in a place like the Annapolis Valley, where home prices are still within reach, the timing couldn’t be better.

Ready to Take the First Step?

Whether you’re just starting to explore your options or you’re ready to get pre-approved, Morgan Worobec is here to help.

• Find homes that qualify

• Connect with local credit union

• Understand your options with no pressure

• Buy with confidence, backed by local knowledge

Contact Morgan today to schedule a call or send a quick message. You’ll get honest advice, local insights, and a clear path forward — no guesswork, no stress.