Nova Scotia's 2% Down Pilot for First-Time Buyers: Who Qualifies and How It Works (2026)

On 3 February 2026 Nova Scotia became the first province to lower the minimum down payment for first-time buyers below the federal 5%. The First-time Homebuyers Program, a four-year pilot run with Atlantic Central and the province's credit unions, lets a qualifying buyer purchase with 2% down. Here is how it works and who it is for. Eligibility rules apply.

The two things that are different

1. 2% down instead of 5%. On a $450,000 home that is $9,000 instead of $22,500.
2. No mortgage default insurance premium. Normally a down payment under 20% means CMHC or private insurance, and the premium (4% of the loan at 5% down, about $17,000 on that same home) is added to your mortgage. Under the pilot the province guarantees 90% of any shortfall to the credit union instead, so there is no premium.

Together, that is a smaller cheque on closing day and a smaller mortgage balance from day one.

Who qualifies

• First-time buyer: no home owned in the last four years.
• Household income up to $200,000.
• Credit score 630 or more, and you pass the usual mortgage stress test.
• Partners buying together must have lived together for at least 12 months, or be newlyweds.
• The home is your primary residence.

Price caps and terms

• Home up to $570,000 in Halifax Regional Municipality and the Municipality of East Hants, $500,000 everywhere else in the province.
• 25-year amortization at most (no 30-year option).
• Interest rate capped at prime plus 2%.
• Through participating credit unions only: banks and mortgage brokers cannot offer it.

What it costs each month

With no insurance premium, the mortgage is smaller, but the balance is 98% of the price, so the payment is higher than a 5%-down mortgage with the premium stripped out. On $450,000 at 4.5% over 25 years, the pilot's mortgage of $441,000 costs about $2,440 a month; the standard insured route borrows $427,500 plus a $17,100 premium, about $2,460 a month. Roughly the same monthly payment, with $13,500 less cash needed up front and $17,000 less debt. The mortgage calculator on every listing page has a "2% down pilot" option so you can run your own numbers.

The trade-off: with 2% equity, a dip in prices leaves you owing more than the home is worth for a while. The province's guarantee protects the lender, not you. If you expect to move within two or three years, think carefully.

2% down or 0% down?

Nova Scotia now has two separate paths for first-time buyers, and they are easy to confuse:

| | 2% down pilot | 0% down from your own savings (DPAP) | |---|---|---| | Your cash for the down payment | 2% of the price | None (the province lends the 5%) | | Default insurance premium | None | Yes, added to the mortgage | | Income limit | Up to $200,000 | Under $145,000 | | Credit score | 630+ | 650+ | | Price cap, HRM and East Hants | $570,000 | $570,000 | | Price cap elsewhere | $500,000 | $375,000 or $300,000 by area | | Lender | Participating credit unions | Any approved lender, insured mortgage | | Repayment | Normal mortgage | Normal mortgage plus the provincial loan over 10 years |

They are different programs with different lenders and rules; you pursue one or the other, as the lender confirms. My plain-language take: if the 2% is within reach, the pilot's missing insurance premium is worth a lot; if the down payment is the whole problem, the 0% down program is the one to look at. And if the home is a new build, the federal GST rebate applies alongside either.

How to apply

Contact a participating credit union in Nova Scotia and ask for the First-time Homebuyers Program. The credit union does the qualifying; the province's role is the guarantee. I can tell you which credit unions near you are taking applications, and I plan the offer timing around their pre-approval.

See which path fits your numbers in a minute with the checker on my first-time buyers page. I am a REALTOR® with REMAX Nova, working with first-time buyers across Halifax and the province; the credit union makes the lending decision.

Frequently asked questions

Is the 2% down program available through banks?

No. It is delivered through participating credit unions, working with Atlantic Central.

Do I pay mortgage default insurance with 2% down?

No. The province guarantees 90% of any shortfall to the lender, so there is no premium.

What is the price limit?

$570,000 in Halifax Regional Municipality and East Hants, $500,000 elsewhere in Nova Scotia.

Can I combine it with the Down Payment Assistance Program?

They are separate programs with different lenders and rules. Choose the one that fits and confirm it with the lender.