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Nova Scotia - Down Payment Assistance Program

What is the Nova Scotia Down Payment Assistance Program?

For eligible Nova Scotians who pre-qualify for an insured mortgage to purchase their first home, the Nova Scotia Down Payment Assistance Program might be a program worth considering. As a reminder, an insured mortgage, is a mortgage for the purchase of a property with a down payment between 5% – 19.99%, the purchase price must be less than $1,000,000. The three typical default mortgage insurance providers in Canada are the Canada Mortgage and Housing Corporation (CMHC), Sagen (Previously known as Genworth Financial), and Canada Guaranty Mortgage Insurance Company. Those eligible can apply to receive an interest-free down payment loan up to $25,000, up to five percent of the purchase price of a home and that is repayable over a 10-year period. 

Who Is Eligible for the Nova Scotia Down Payment Assistance Program?

Please take note of the following applicant eligibility criteria: 

  • Must have a credit rating satisfactory to Municipal Affairs and Housing (DMAH) and be pre-approved for an insured mortgage by a recognized financial institution
  • Be a first-time home buyer
  • Total household income is less than $145,000
  • Is a Canadian citizen or has permanent resident status
  • Has resided in Nova Scotia for at least 12 months
  • Does not have the financial ability to pay 5% of the purchase price of the property without the assistance of the program.
  • The applicant has reviewed the educational material for first-time home buyers provided by Municipal Affairs and Housing (see below)

Are There Property Eligibility Requirements?: 

The property must:

  • Be located in Nova Scotia
  • Be the applicant’s principal residence – rental properties, seasonal, and recreational properties are not eligible
  • Be permanently affixed to a property owned by the applicant in the case of mobile homes
Are There Purchase Price Eligibility Requirements?:

Properties must have a purchase price that does not exceed:

  • $500,000 in the Halifax Regional Municipality (HRM), and East Hants
  • $300,00 in Northern and Eastern regions (Cumberland, Colchester, Pictou, Antigonish, Guysborough, Cape Breton, and including Yarmouth)
  • $375,000 in Annapolis Valley, West Hants, and the South Shore
 
What is the Application and Review Process for the Nova Scotia Down Payment Assistance Program?:  
 
According to Housing Nova Scotia, an application may be submitted at any time, on a first-come, first-served basis. Please be aware that the following documentation must be submitted alongside your application:
 
  •  Income Tax slips (T-slips) and associated Notice of Assessment from the Canada Revenue Agency (CRA) for the tax year prior to the year you are applying for the program. Your T-slips should equal the total ($) amount found on Line 15000 (formerly 150) of your Notice of Assessment.  

  • A copy of your Option “C” Report (proof of income statement) is available by calling the Canada Revenue Agency at 1-800-959-8281, or a copy can also be obtained through My Account on the CRA website, provided for the applicant and co-applicant.

  • A copy of your most recent pay stubs.

  • A copy of your Pre-Approval for first mortgage financing.

  • A signed affidavit showing no previous home ownership. The affidavit can be signed by a Commissioner of Oaths, including a barrister of the Supreme Court of Nova Scotia, Canadian Armed Forces officers on active duty, Members of the Legislative Assembly of Nova Scotia, municipal chiefs of police, commissioned officers of the RCMP on active service, non-commissioned officers of the RCMP, head of a detachment on active service in Nova Scotia, and funeral directors. Municipal Affairs and Housing has a Commissioner of Oaths available by appointments only.  Contact your local office for further information.

  • A copy of your Agreement of Purchase and Sale.

  • A written verification of employment confirming your date of hire, position, current annual income, employment status (full time, part time, casual, seasonal, term), and the probability for future or continued employment.

  • A completed Authorization of Electronic Funds Transfer (EFT) form. 

Your application cannot be processed if proper verification of income, as noted above, is not provided.

Municipal Affairs and Housing (DMAH) requires five business days to process an application. Applicants are encouraged to apply at least five business days from the designated financing deadline typically found under “Buyer’s Conditions” on the purchase and sale agreement. Municipal Affairs and Housing is not responsible for late submissions that result in missed deadlines. 

Applicants are advised to please call toll free 1-844-424-5110 to set up an appointment if they wish to visit our office to submit an application or require assistance from one of our staff members.

Download your application form here:

 
Closing Commentary from DV Capital Corporation, a Mortgage Broker operating across Nova Scotia:
 
It is very important to understand that in addition to your approval for the Nova Scotia Down Payment Assistance Program, a formal, third-party mortgage lender, underwriting, default insurance and mortgage approval process must be conducted and we encourage consumers to thoroughly understand that there are multiple steps in the mortgage approval, real estate purchase and down payment assistance program, with different requirements and qualifying criteria. 
 
DV Capital Corporation remains 7-days a week to be contacted by First Time Home Buyers either living in or planning to move to Nova Scotia. 
 

DV Capital Corporation
t. 416.839.5874
tf. 1.866.839.5874
e. info@dvcapitalcorp.com

Lic. 13186 | 3000348 | 3000349

 
 

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