Nova Scotia has become one of Atlantic Canada's hottest housing markets, attracting first-time buyers with its coastal charm, vibrant culture, and—compared to major cities like Toronto and Vancouver—relatively affordable home prices. Whether you're drawn to Halifax's urban energy, the picturesque South Shore, Cape Breton's natural beauty, or the quiet appeal of the Annapolis Valley, buying your first home in Nova Scotia is an exciting opportunity.
But like any housing market, Nova Scotia has its own unique considerations—from provincial programs to local market dynamics. This guide will walk you through everything you need to know about mortgages as a first-time buyer in Nova Scotia in 2026.
The Nova Scotia Housing Market in 2026
Nova Scotia's housing market has seen significant growth in recent years, driven by interprovincial migration, remote work flexibility, and people seeking a better quality of life. While prices have risen, they're still more affordable than Ontario and BC, especially outside Halifax.
Halifax Regional Municipality (HRM)
The urban core with strong demand, diverse neighborhoods, and the highest prices in the province. Inventory is tighter here.
Average home: $500,000-$650,000
Dartmouth & Surrounding Areas
More affordable than Halifax proper with good access to amenities. Popular with first-time buyers seeking value.
Average home: $400,000-$550,000
South Shore & Annapolis Valley
Coastal communities and agricultural regions with charming towns, lower prices, and strong community feel.
Average home: $300,000-$450,000
Cape Breton & Rural Areas
Most affordable regions with stunning natural beauty, waterfront properties, and acreages at unbeatable prices.
Average home: $200,000-$350,000
Market Insight:
The Nova Scotia market is showing signs of stabilization in 2026 after rapid growth in 2021-2024. While Halifax remains competitive, other regions are seeing more balanced conditions with better negotiating power for buyers.
Down Payment Requirements in Nova Scotia
Nova Scotia follows federal down payment rules. With home prices ranging widely across the province, your required down payment depends on where you're buying.
Minimum Down Payment Structure:
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5%
First $500,000 of purchase price
For a $400,000 home = $20,000 down payment
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10%
Portion between $500,000-$999,999
For a $600,000 home = $25,000 + $10,000 = $35,000 total
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20%
Homes $1 million and above
Rare in Nova Scotia, mainly waterfront luxury properties
CMHC Insurance:
If you put down less than 20%, you'll need mortgage default insurance from CMHC, Sagen, or Canada Guaranty.
For a $400,000 home with 5% down ($20,000), insurance costs approximately $15,200, making your total mortgage around $395,200.
Programs Available to Nova Scotia First-Time Buyers
Nova Scotia offers some provincial programs alongside federal incentives to help first-time buyers.
Nova Scotia Down Payment Assistance Program
Provides forgivable loans of up to 5% of the purchase price (maximum $25,000) to help first-time buyers with down payments and closing costs.
Eligibility:
- • First-time buyer or haven't owned a home in 5 years
- • Household income under $75,000
- • Purchase price up to $300,000
- • Must occupy as principal residence for 5 years (then loan is forgiven)
First Home Savings Account (FHSA)
Contribute up to $8,000 per year (lifetime max $40,000) to this tax-free savings account specifically for first-time home buyers.
Contributions are tax-deductible, withdrawals for home purchase are tax-free, and investment growth is tax-free.
Home Buyers' Plan (HBP)
Withdraw up to $35,000 from your RRSP for a down payment, tax-free. You have 15 years to repay it to your RRSP.
Couples can each withdraw $35,000 for a combined $70,000 boost to your down payment.
First-Time Home Buyers' Tax Credit
Claim up to $10,000 on your tax return for a federal tax credit of $1,500 to help with closing costs and moving expenses.
Choosing Your Mortgage Type
Understanding mortgage types helps you pick the best option for your situation and financial goals.
Fixed-Rate Mortgage
Your interest rate stays the same for the entire term (typically 1-5 years). This gives you predictable payments and protects you from rate increases.
Best for: Buyers who want payment certainty and budgeting stability. Most popular choice in Nova Scotia.
Variable-Rate Mortgage
Your rate fluctuates with the Bank of Canada's prime rate. If rates drop, your payment drops. If they rise, so does your payment.
Best for: Buyers comfortable with some risk who believe rates will stay stable or decrease over their term.
Hybrid Mortgage
Split your mortgage between fixed and variable rates. This balances stability with flexibility.
Best for: Buyers who want some protection from rate increases while benefiting if rates drop.
Unique Considerations for Nova Scotia Buyers
Older Housing Stock
Many Nova Scotia homes are older and may need updates or repairs. Budget for a thorough home inspection and potential renovation costs. Consider newer builds if you want move-in-ready properties.
Heating Costs
Atlantic winters mean heating is a significant expense. Ask about the home's heating system (oil, electric, heat pump) and average winter costs. Heat pumps are increasingly popular for efficiency.
Well Water & Septic Systems
Rural properties often have well water and septic systems instead of municipal services. Ensure these are inspected and budget for maintenance.
Property Taxes
Nova Scotia property tax rates vary by municipality. Halifax has higher rates than rural areas, so factor this into your monthly housing costs.
Waterfront Premium
Waterfront properties command premium prices but offer incredible lifestyle benefits. Be realistic about budgets and consider "water view" vs. "waterfront" for more affordability.
Closing Costs in Nova Scotia
Beyond your down payment, budget 1.5-4% of the purchase price for closing costs. On a $400,000 home, that's $6,000-$16,000.
Deed Transfer Tax
1.5% of purchase price (first-time buyers are exempt on first $200,000)
Legal Fees
$1,200-$2,500 for lawyer services and land registration
Home Inspection
$400-$600 (essential, especially for older homes)
Appraisal Fee
$300-$500 if required by your lender
Title Insurance
$200-$350 (one-time fee for protection)
Property Insurance
First year's premium ($1,000-$2,000, higher for older homes)
First-Time Buyer Savings:
First-time buyers in Nova Scotia are exempt from deed transfer tax on the first $200,000 of the purchase price. On a $400,000 home, that saves you $3,000!
Final Tips for Nova Scotia First-Time Buyers
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Apply for the Down Payment Assistance Program: If eligible, this can be a game-changer for your down payment.
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Don't overlook smaller communities: Amazing value exists outside Halifax—South Shore, Annapolis Valley, and Cape Breton offer incredible opportunities.
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Get a thorough home inspection: Older homes need careful assessment. Don't skip this step.
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Factor in heating costs: Ask sellers for utility bills from winter months to budget accurately.
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Get pre-approved: Understand your budget and show sellers you're a serious, qualified buyer.
Nova Scotia offers first-time buyers a unique combination of coastal beauty, strong communities, and relative affordability. With the right preparation and knowledge, you'll be enjoying ocean breezes from your own Nova Scotia home before you know it!