What You Need to Know About Nova Scotia’s Down Payment Assistance Program

For many first-time homebuyers, saving up a down payment is one of the biggest challenges to entering the market. If you’re in that situation, Nova Scotia’s Down Payment Assistance Program (DPAP) could be an option worth considering.

In 2024, the province made a few changes to the program to reflect the rising cost of homes, especially in the Halifax Regional Municipality (HRM) and East Hants.

Program Updates

Since mid 2024, the following updates have applied:

The maximum purchase price in HRM and East Hants increased to $570,000, up from $500,000.
The maximum loan amount also increased to $28,500, which is 5% of the purchase price.

These adjustments were made because average home prices in HRM and East Hants had risen beyond the original price cap, making the program less useful for buyers in those areas.

How Does It Work?

The program provides a loan of up to 5% of the purchase price to assist with the down payment. The loan is interest-free and repayable over 10 years. It’s important to note that the loan can only be used for the down payment, not for closing costs or financing fees.

For example, if you’re purchasing a $570,000 home in HRM, the minimum down payment requirement is:

5% on the first $500,000 = $25,000
10% on the remaining $70,000 = $7,000

The DPAP could cover up to $28,500, but you’ll need to show you have the financial ability to cover the remainder if needed.

The repayment is straightforward. Whatever amount you borrow through the program is divided over 120 months (10 years). For example, if you borrow $25,000, your monthly payment would be about $208.33/month, interest-free. The payment is added separately from your mortgage payment and goes directly toward repaying the down payment loan.

Who is Eligible?

You may be eligible if you meet the following:

First-time homebuyer
Total household income under $145,000
Credit score of 650+
Pre-approved for an insured mortgage from an approved lender
Canadian citizen or permanent resident living in Nova Scotia (at least 183 days/year)
Unable to cover 5% of the purchase price without assistance

Property must:

Be in Nova Scotia
Be your primary residence
Fall within these price caps:
- $570,000 – HRM & East Hants
- $375,000 – West Hants, Annapolis Valley, South Shore
- $300,000 – Yarmouth, Northern & Eastern NS

Is It the Right Option for You?

This program isn’t a one-size-fits-all solution, but it can help if the down payment is your biggest obstacle to buying your first home. It’s meant for buyers who can manage the monthly mortgage payments but need assistance getting over the initial hurdle.

If you’d like more information or need help understanding how it applies to you, feel free to reach out.

Call or text (902) 402-9779, or visit www.gregmatthews.tmgbroker.com/apply.aspx to fill out a five-minute pre-approval form.