"0% down" is the line in a lot of ads right now, so let me say exactly what it means, because the details decide whether it works for you. The program is the province's Down Payment Assistance Program, usually shortened to DPAP, and the honest version of the headline is 0% down from your own savings. Eligibility rules apply.
What the province actually does
For a first-time buyer, the province lends the 5% minimum down payment, interest-free, as a second mortgage registered on the home. You repay it over 10 years. If you keep living in the home, there is no interest at all. Your own savings do not have to cover the down payment.
What it does not cover: closing costs. Deed transfer tax (1.5% in Halifax), legal fees, title insurance, an inspection and the first insurance premium are still cash on closing day. On a $450,000 home in Halifax that is roughly $9,500 to $10,500. My closing costs guide walks through it.
Who qualifies
- You are a first-time buyer, and so is everyone who will be on the deed.
- Canadian citizen or permanent resident, living in Nova Scotia full-time, and the home will be your primary residence (no rentals, no seasonal properties).
- Household income under $145,000.
- Credit score 650 or more.
- You could not otherwise pay the 5% without help.
- You have a pre-approval for an insured mortgage from an approved lender.
The price caps, by area
| Where the home is | Maximum price | |---|---| | Halifax Regional Municipality and East Hants | $570,000 | | West Hants, Annapolis Valley, South Shore | $375,000 | | Yarmouth County and the northern and eastern regions | $300,000 |
One wrinkle: on a home over $500,000 the federal minimum down payment is 5% of the first $500,000 plus 10% of the rest. The province's loan is 5% of the price, so on a $550,000 home in Halifax the minimum is $30,000, the loan is $27,500, and about $2,500 comes from you. Below $500,000 the loan covers the whole minimum.
What it does to the monthly cost
Two things to budget for:
- The mortgage itself is insured as usual (the down payment is under 20%), so the default insurance premium, 4% of the loan at 5% down, is added to the mortgage.
- The provincial loan is repaid over 10 years: $22,500 on a $450,000 home works out to about $188 a month, on top of the mortgage, tax and heat.
The mortgage calculator on every listing page on this site has a "0% down from your own savings (DPAP loan)" option that shows both.
Timing: the part that catches people
The province says the application takes about three weeks once it is complete, longer if anything is missing, and it must be in at least three weeks before your financing deadline. In a normal Nova Scotia purchase the financing condition is often five to ten days. So the realistic order is: pre-approval, then the DPAP application, then the offer. If you tell me you are using this program before we start viewing, I plan the dates around it. If you tell me after an accepted offer, we are usually asking the seller for more time.
How to apply
There is no cost to apply. The province's page has the application form and the list of documents (income proof, the pre-approval, the purchase agreement once you have one). Applications go by mail or to a regional office; in Halifax and Hants you book an appointment.
Is it the right program for you?
It is the right program when you have the income to carry a mortgage but not the savings for the down payment, and the home you want is under the cap for its area. If you have the 2% saved and would rather avoid the insurance premium, Nova Scotia's 2% down pilot is the other path; it is a separate program with its own lender and rules, and you choose one or the other. If you are buying a new build, read about the GST rebate as well; it works alongside either path.
The quickest way to see which fits your numbers is the checker on my first-time buyers page. I am a REALTOR® with REMAX Nova and I work with first-time buyers across Halifax and the province; the province and the lender make the final decision on every application.
Frequently asked questions
Do I pay interest on the Down Payment Assistance Program loan?
No, as long as you continue to live in the home. It is repaid over 10 years.
Can I use it on a new build?
Yes, on a new or existing home, within the price cap for the area.
What credit score do I need?
650 or more, and a household income under $145,000.
How long does the application take?
About three weeks once complete. Apply at least three weeks before your financing deadline.
Sources
This guide is general information, not legal, tax or financial advice. Rules and rates change; confirm current figures with the source linked above, your lawyer, and your lender before you act on them.
Have a question about buying or selling in Nova Scotia?
Akshay Bansal is a REALTOR® with REMAX Nova in Halifax. No pressure, just straight answers.