Nova Scotia Down Payment Assistance Program (DPAP) for First-Time Homebuyers

Saving for a down payment is one of the biggest challenges for first-time homebuyers in Nova Scotia. To help make homeownership more accessible, the provincial government offers the Down Payment Assistance Program (DPAP). This program provides an interest-free loan to help eligible buyers cover a portion of their required down payment.

Below is a clear, fact-based overview of how the program works, who qualifies, and how to apply. All details come directly from the Government of Nova Scotia and the 2024 program updates.

What the Down Payment Assistance Program Is

The Down Payment Assistance Program provides an interest-free loan of up to 5 percent of the purchase price to help Nova Scotia residents buy their first home. This loan must be repaid over a 10-year period. It can only be used for the down payment itself and not for closing costs or other fees.

More info: https://www.novascotia.ca/apply-loan-help-down-payment-your-first-home-down-payment-assistance-program

How Much Assistance Is Available

Eligible first-time buyers can receive a loan equal to up to 5 percent of the home’s purchase price. Because housing markets vary across the province, Nova Scotia sets maximum purchase price caps for each region.

Current caps include:

Halifax Regional Municipality and East Hants
Homes up to approximately $570,000 qualify.

Annapolis Valley, South Shore, and West Hants
Homes up to approximately $375,000 qualify.

Northern and Eastern Nova Scotia, including Cumberland, Colchester, Pictou, Antigonish, Guysborough, Yarmouth, and Cape Breton
Homes up to approximately $300,000 qualify.

These caps were updated in 2024 and help ensure the program reflects different market conditions across the province.

Source: https://news.novascotia.ca/en/2024/06/19/enhancements-down-payment-assistance-program

Who Qualifies for DPAP

To qualify for the Down Payment Assistance Program, buyers must meet all eligibility requirements:

• Must be a first-time homebuyer
• Must have lived in Nova Scotia for at least 12 months
• Must be a Canadian citizen or permanent resident
• Total household income must be under $145,000
• Must be pre-approved for an insured mortgage
• Must have a satisfactory credit history (commonly 650+)
• Must not have the financial ability to provide the full 5 percent down payment without assistance
• The home must be the applicant’s primary residence
• The home’s purchase price must fall within the regional caps listed above

Full eligibility details: https://www.novascotia.ca/apply-loan-help-down-payment-your-first-home-down-payment-assistance-program

How the Loan Works

The DPAP loan is interest-free and repayable over 10 years. Payments begin shortly after the loan is issued, and borrowers may repay the loan early without penalty. If you sell the home, refinance, or pay off your mortgage before the 10 years are complete, any outstanding balance on the DPAP loan typically becomes due.

The loan can only be used toward the down payment and not for closing costs, legal fees, or mortgage default insurance.

Program guidelines: https://www.novascotia.ca/documents/down-payment-assistance-program-guidelines

How to Apply

To apply for the program, you will need:

• Mortgage pre-approval
• Proof of income
• Credit documentation
• Proof of residency
• A signed Agreement of Purchase and Sale (when available)

You can apply online or download the official application form here:
Application form (PDF): https://www.novascotia.ca/sites/default/files/documents/2-3462/down-payment-assistance-program-dpap-form-en.pdf

General program information and online application portal:
https://www.novascotia.ca/apply-loan-help-down-payment-your-first-home-down-payment-assistance-program

Why This Program Matters

The DPAP is one of the most effective tools for first-time homebuyers in Nova Scotia. Rising home prices make it difficult to save the full down payment, and this program helps qualified buyers enter the market sooner by reducing the upfront cash required.

With an interest-free loan and flexible repayment terms, DPAP helps bridge the gap between renting and owning for many Nova Sco