First-Time Home Buyer Programs in Canada

Buying your first home in Nova Scotia is a major milestone, and there are several federal and provincial programs designed to help new buyers reduce taxes, save more efficiently, and access down-payment support. Below is a concise, fully verified overview of the programs currently available as of December 2025.

Federal Programs for First-Time Home Buyers

First Home Savings Account (FHSA)

The FHSA allows first-time buyers to save for a home using a tax-deductible and tax-free structure.
Learn more: Government of Canada – FHSA

• Annual contribution limit: $8,000

• Lifetime contribution limit: $40,000

• Contributions are generally tax-deductible

• Investment growth and qualifying withdrawals are tax-free

• Can be used together with the Home Buyers’ Plan

Eligibility requires being a Canadian resident, at least the age of majority, and meeting CRA’s definition of a first-time home buyer.

Home Buyers’ Plan (HBP)

The HBP allows eligible buyers to withdraw from their RRSP to buy or build a qualifying home.
Learn more: CRA – Home Buyers’ Plan

• Maximum withdrawal: $60,000 per buyer

• Couples can withdraw up to $120,000 combined

• Repayment is over 15 years

• Requires a written agreement to buy/build and intent to occupy the home as a principal residence

First-Time Home Buyers’ Tax Credit (Home Buyers’ Amount)

A federal non-refundable tax credit available in the year of purchase.
Learn more: CRA – Home Buyers’ Amount

• Claim amount: $10,000

• Maximum tax reduction: $1,500

• Certain buyers with disabilities may qualify even if they are not first-time buyers under the usual rules

Existing GST/HST New Housing Rebate (Federal Portion)

This rebate helps eligible purchasers of newly built or substantially renovated homes recover part of the federal portion of GST/HST.
Learn more: CRA – GST/HST New Housing Rebate

• Rebate equals 36% of the 5% GST

• Maximum rebate: $6,300

• Full rebate applies to homes $350,000 or less

• Phased out between $350,000 and $450,000

New Proposed First-Time Home Buyers’ GST/HST Rebate (Not Yet in Effect)

The federal government has proposed an enhanced GST/HST rebate specifically for first-time buyers of new or substantially renovated homes. This program is not yet in effect and depends on legislation.
Learn more: CRA – FTHB GST/HST Rebate

Proposed details include:

• Up to 100% of the federal portion of GST/HST, capped at $50,000

• Full rebate available for new homes up to $1 million

• Sliding reduction between $1 million and $1.5 million

• No rebate at $1.5 million or more

• Agreements must be signed on or after May 27, 2025, before 2031

• Applications cannot be processed until legislation is passed

Nova Scotia Down Payment Assistance Program (DPAP)

A provincial program created for first-time buyers who qualify for an insured mortgage but need support with their down payment.
Learn more: Province of Nova Scotia – DPAP

What the Program Provides

• An interest-free loan equal to 5% of the purchase price

• Repayable over 10 years

• Must be used solely for the down payment

Eligibility Requirements

You may be eligible if you:

• Are pre-approved for an insured mortgage

• Have household income under $145,000

• Have a credit score of 650+

• Are a first-time buyer under program rules

• Are a Canadian citizen or permanent resident living full-time in Nova Scotia

• Can cover your closing costs

Eligible properties must be in Nova Scotia, be used as your primary residence, and be permanently attached to owned land if they are manufactured homes.

Price Caps by Region

• Halifax Regional Municipality & East Hants: up to $570,000

• West Hants, Annapolis Valley, South Shore: up to $375,000

• Yarmouth County, Northern & Eastern Regions: up to $300,000

For homes over $500,000, federal minimum down-payment rules apply: 5% on the first $500,000, and 10% on the remainder.

Using These Programs Together

Many first-time buyers combine multiple options to strengthen their buying power:

• Save through an FHSA

• Withdraw RRSP funds through the HBP

• Claim the Home Buyers’ Tax Credit

• Apply for the GST/HST New Housing Rebate if purchasing a new build

• Use DPAP to reach the minimum down payment

The CRA confirms that the FHSA and HBP can be used together for the same home when all conditions are met.

Thinking of Buying Your First Home in Nova Scotia?

If you want help understanding how these programs fit with your budget and goals, we’re here to walk you through the options step by step.

Joanne Bouley
Owner / Managing Associate Broker, REALTOR® – 902-899-2588

Sharon Corcoran
REALTOR® / Broker – 902-899-3501

Truro Home Team – RE/MAX Fairlane Realty – 902-893-7500

Each office independently owned and operated. MLS®.

Disclaimer

This blog is provided for general information only. Program rules, eligibility requirements, and government policies can change at any time. Buyers should verify all details directly with the Government of Canada, the Canada Revenue Agency (CRA), the Province of Nova Scotia, CMHC, and their mortgage professional before making financial or real estate decisions.