Buying your first home can feel out of reach when you’re trying to save up for the down payment. Even with decent income, many people struggle to put together 5% or more.
That’s where the Nova Scotia Down Payment Assistance Program (DPAP) can help. It’s designed to support first-time homebuyers who have good credit and steady income but haven’t had the chance to save up enough for a down payment.
What Is the Down Payment Assistance Program? The Down Payment Assistance Program is a government-backed loan that covers up to 5% of the purchase price for your down payment. It’s interest-free and repayable over 10 years.
You still need to qualify for a mortgage the regular way, and you’ll need to budget for closing costs. But this program can be a big help if the down payment is your main hurdle.
Example Scenario Let’s say you’re buying your first home for $350,000.
You need a 5% down payment, which is $17,500
The Down Payment Assistance Program loan covers the full amount
Monthly repayment over 10 years (interest-free) would be $145.83
You don’t need to contribute any of your own funds toward the down payment. You would, however, still need to show you have enough set aside for legal fees, closing costs, and any adjustments at closing.
What Are the Requirements?
You must be a first-time homebuyer
You need to have lived in Nova Scotia for at least 12 months
Household income must be $145,000 or less
The purchase price must be within regional limits
The home must be your principal residence
Click here to get pre-approved using the NS Down Payment Assistance Program
What You Need to Know
You start repaying the loan right away (no grace period)
You can repay it early with no penalty
If you move, sell, or refinance before 10 years, any unpaid balance is due
This program is not available for rental properties or second homes.
Why It’s Worth Considering This option can help you get into a home sooner without waiting years to save a full down payment. That means you can start building equity, avoid rising home prices, and stop paying rent sooner.
It’s also helpful if you want to use your own savings for other priorities like paying off debt, keeping money set aside for emergencies, or covering move-in expenses.
Final Thoughts If the down payment is the one thing holding you back from buying, this program could be the solution. It gives you a chance to break into the market and become a homeowner without waiting and saving.
For more details or to see if you might qualify, visit the official site here: https://beta.novascotia.ca/apply-loan-help-down-payment-your-first-home-down-payment-assistance-program
Or reach out if you want to run through your numbers and explore whether this could work in your situation.
Frequently Asked Questions (FAQ)
Do I have to pay the loan back? Yes, it’s a 10-year interest-free loan. You start making monthly payments right away.
Can I use this program with any lender? Most major lenders will accept this program, but some may have restrictions. Your broker can help you find the right fit.
Can I buy a fixer-upper with this program? The home must be in move-in ready condition. Purchase Plus Improvements loans can sometimes be combined if you're doing upgrades, but not all lenders will allow it.
What happens if I sell my home early? If you sell or move before the 10-year period is up, you’ll need to repay any remaining loan balance at that time.