First-Time Home Buyer Programs in Nova Scotia (2026): FHSA, Home Buyers' Plan, Provincial Rebate and 30-Year Mortgages

Buying your first home in Nova Scotia is easier with the programs below, but only if you know they exist before you start. Some need to be set up years ahead. Others only apply to newly built homes. Here is what each one does, in plain language, with the current figures.

1. First Home Savings Account (FHSA)

A registered account built for exactly one purpose: saving a down payment.

• Contribute up to $8,000 a year, up to a $40,000 lifetime limit.
• Contributions are tax-deductible, like an RRSP.
• Withdrawals for a qualifying first home are tax-free, like a TFSA.
• Unused room carries forward, up to $8,000 from the previous year, so the most you can put in during a single year is $16,000.

The catch: room only starts building once you open the account. If you are two or three years from buying, opening an FHSA now is one of the highest-value moves you can make, even if you only put in a small amount to start.

2. Home Buyers' Plan (HBP)

Lets you borrow from your own RRSP for a first home.

• Withdraw up to $60,000 per person (the limit rose from $35,000 for withdrawals made after April 16, 2024).
• A couple who both qualify can withdraw up to $120,000 combined.
• The money is repaid to your RRSP over time; missed repayments count as income.

You can use the FHSA and the HBP together for the same purchase.

3. Nova Scotia First-Time Home Buyers' Rebate (newly built homes only)

A provincial rebate on part of the HST paid on a newly constructed home.

• 18.75% of the provincial portion of the HST, up to $3,000.
• You qualify as a first-time buyer if you have not owned and occupied a home in Canada in the last five years, and the same applies to any co-owner who will live there.
• Renovations and conversions of rental units do not count.
• You must apply within 24 months, and only the person who paid the tax can claim it.

This does not apply to resale homes, which is why it is worth knowing before you decide between a resale and a new build.

4. 30-year amortizations

Since December 15, 2024, all first-time buyers with an insured mortgage can choose a 30-year amortization instead of 25. Buyers of newly built homes get the same option whether or not it is their first purchase.

A longer amortization lowers the monthly payment. It also means more interest over the life of the loan, so treat it as a tool for getting into the right home, not a reason to stretch to a bigger one.

The same reform raised the price cap for insured mortgages to $1.5 million.

5. Down payment minimums

The federal minimums for an insured purchase:

• 5% of the first $500,000 of the purchase price.
• 10% of the portion between $500,000 and $1.5 million.
• 20% of the full price at $1.5 million and above.

Under 20% down means mortgage default insurance, with the premium usually added to the mortgage.

Putting it together

A realistic Nova Scotia first-time buyer plan looks like this:

1. Open an FHSA early so room starts accumulating.
2. Get a pre-approval that reflects the 30-year option and your actual income.
3. Budget for closing costs on top of the down payment, especially the municipal deed transfer tax. See our closing costs guide.
4. If you are considering new construction, factor in the provincial rebate and the HST treatment. See our new construction guide.

Akshay works with first-time buyers across Halifax and the surrounding communities and is happy to walk through which of these apply to you before you start viewing homes.

Frequently asked questions

What is the FHSA contribution limit in 2026?

$8,000 per year, with a $40,000 lifetime limit. Up to $8,000 of unused room carries forward from the previous year.

How much can I withdraw from my RRSP under the Home Buyers' Plan?

Up to $60,000 per person for withdrawals made after April 16, 2024. Two qualifying buyers can withdraw up to $120,000 combined.

Is there a first-time home buyer rebate in Nova Scotia?

Yes, for newly built homes: 18.75% of the provincial portion of the HST, up to $3,000. You must apply within 24 months. It does not apply to resale homes.

Can first-time buyers in Nova Scotia get a 30-year mortgage?

Yes. Since December 15, 2024, all first-time buyers with an insured mortgage can choose a 30-year amortization, as can any buyer of a newly built home.

What is the minimum down payment in Nova Scotia?

The federal minimum is 5% of the first $500,000, 10% of the portion from $500,000 to $1.5 million, and 20% of the full price at $1.5 million or more.