If you thought saving a 5% down payment was the toughest part of buying your first home, Nova Scotia just changed the game — and your decision may come down to now or wait another year.
That's thanks to a brand-new provincial pilot program launching in February 2026 that lets eligible first-time buyers purchase with only 2% down — less than half what's usually required.
For years, renters in Halifax, Dartmouth, and across Nova Scotia have watched average home prices climb while their savings barely budge. With traditional down payments eating up tens of thousands of dollars, many hopeful buyers felt shut out.
Now imagine needing less than half the upfront cash — but with a twist: this opportunity comes with trade-offs that savvy buyers must understand before diving in.
On February 3, 2026, Nova Scotia's government launched the First-time Homebuyers Program — a four-year pilot that reduces the minimum down payment from 5% to just 2% for eligible buyers.
To qualify:
Halifax & East Hants
$570,000
Elsewhere in Nova Scotia
$500,000
The pilot is designed to lower the upfront cash barrier that stops many first-time buyers from entering the market.
Let's compare the old rules vs the new pilot on a typical home purchase — say a $400,000 house:
| Scenario | Down Payment % | Down Payment $ | Mortgage Insurance | Mortgage Amount |
|---|---|---|---|---|
| Standard 5% down | 5% | $20,000 | Required | ~$380,000+ |
| Nova Scotia 2% pilot NEW | 2% | $8,000 | Not required | ~$392,000 |
In this example, the 2% option saves you $12,000 upfront, and you avoid separate mortgage insurance — but your mortgage balance will be higher and your rate may be capped at a higher level than typical prime/bank rates.
That could be the difference between affording a home now or waiting years to save up. However, there are important trade-offs, too.
If you can't save a big down payment but have steady income and credit, this program opens the door to homeownership faster than ever.
Properties under the price cap may be common in parts of Nova Scotia outside Halifax, making this a real opportunity for local buyers.
The program is offered only through credit unions, not major banks — meaning fewer lenders and less flexibility if you want to refinance later.
Higher mortgage balance + capped interest rates can mean paying more interest over time compared with a traditional 5% down payment with mortgage insurance.
Because the provincial guarantee isn't the same as traditional insurance, you may not be able to transfer the mortgage to another lender until you build significant equity.
If you're considering using this program, here's your roadmap:
Do you meet income, credit, and residency requirements? The earlier you know, the better.
Factor in closing costs, legal fees, property tax, and monthly payments — not just the 2% down. Don't forget future rate changes.
This program is not available from all lenders, so connect with a local credit union that participates to get the full details and application steps.
A pre-approval tells you exactly what you can afford and strengthens your offer when you find the right home.
This 2% down payment pilot could change your buying power — but only if you understand the full picture.
Schedule your free strategy call now — before prices and rules shift again.