Are you saving for a down payment on your first home? The Nova Scotia government has a program that can help.
If you want to buy your first home, it can feel nearly impossible to save enough money for the downpayment while also paying normal living expenses, such as rent, groceries, and gas. In many cases, the cost to rent can be higher than a mortgage payment, property tax, and home insurance and maintenance combined.
In response to increasing home prices, the province of Nova Scotia has made significant changes to the Down Payment Assistance Program (DPAP) that will help more Nova Scotians who have been saving for a down payment. The program provides eligible homebuyers with an interest-free repayable loan of up to 5% of the purchase price of their first home. This means that instead of having to save up the full downpayment and closing costs for a home, you only need to save enough for things like closing costs and legal fees.
The loan provided under this program is interest-free, repayable over a 10-year period, and must be used for a down payment. The loan cannot be used for financing, closing, or other costs.
The most significant change to the program is an eligibility increase for the home purchase price.
- Halifax Regional Municipality: $500,000 (up from $300,000). The new maximum loan for a home in this area is $25,000.
- Northern and Eastern regions (Cumberland, Colchester, Pictou, Antigonish, Guysborough, and Cape Breton) and Yarmouth region: $300,000 (up from $200,000). The new maximum loan for a home in this area is $15,000.
- Annapolis Valley/South Shore: $375,000 (up from $200,000). The new maximum loan for a home in this area is $18,750.
In addition, they have increased the total household income eligibility to $145,000 across the province, up from $75,000.
The province has a comprehensive website with information on the DPAP, available at housing.novascotia.ca/downpayment. There you can find complete eligibility guidelines, details about the application process, and the application forms.
If you’re looking for a Realtor to help you in your home-buying search, I’d be happy to help. Learn more about working with me when buying a home.