Struggling to buy your first home in Ontario? Just move to Nova Scotia where the government and Housing Nova Scotia just announced a new Down Payment Assistance Pilot Program for first-time buyers.
“The Government of Canada is pleased to partner with the provincial government to provide a program that will benefit modest income families and individuals in Nova Scotia,” says Andy Fillmore, Parliamentary Secretary to the Minister of Democratic Institutions and Member of Parliament for Halifax. “This will have a positive impact on new homeowners and contribute to building a strong foundation for a sustainable economic future.”
$1.3 million is being invested in the program to give 100 to 125 Nova Scotians a chance to realize their dream of homeownership. To qualify, buyers must be pre-approved for an insured mortgage from an accredited lender and have a household income of $75,000 or lower.
“Saving up for a down payment remains one of the main hurdles for people wanting to purchase their first home,” says Joanne Bernard, Provincial Minister responsible for Housing Nova Scotia. “While we continue to help our most vulnerable citizens with housing supports, we can’t forget that many modest-income families want to buy homes so they can lay down roots here in Nova Scotia. When we help families, we help strengthen our province.”
The program is designed for buyers that qualify to purchase but struggle to save for the down payment. Qualifying buyers receive an interest-free loan of up to 5% of the purchase price of a new or existing home, with the max price being $280,000 in Halifax Regional Municipality (HRM) and $150,000 in the rest of the province.
“Continuing to increase first-time homebuyers’ entry into the market is a vital piece of the homebuyer’s market cycle,” says Sherry Donovan, Chief Executive Officer, Canadian Home Builders’ Association – Nova Scotia. “Without first-time homebuyers, many would-be sellers will remain in their current homes because they are unable to sell. The Down Payment Assistance Pilot Program will be a benefit to the overall residential construction industry and Nova Scotia’s economy.”
The loans will range from up to $7,500 to $14,000 (in HRM). The first-time buyers will have 10 years to repay the interest-free loan and payments can be waived for the first year to allow them to get settled in their new financial situation.
These dollar figures may seem low because you’re used to GTA pricing, but in Nova Scotia, this interest-free loan will go a long way. The Down Payment Assistance Pilot Program will operate for a year. We’re looking forward to seeing the results!