Buyer Guide

Buying your first home in Nova Scotia is an exciting milestone. This guide covers the key programs, costs, and steps you need to know. Halifax Regional Municipality (HRM) has a dynamic housing market with options ranging from downtown condos to suburban family homes.

The average home price in Halifax is approximately $500,000-$600,000 (as of 2025), though prices vary significantly by neighbourhood. Budget roughly 3% of the purchase price for closing costs on top of your down payment.

Nova Scotia Down Payment Assistance Program

The province offers an interest-free loan of up to 5% of the purchase price to help with your down payment.

Eligibility:

• Must be a first-time home buyer
• Household income under $145,000
• Purchase price under $500,000 in HRM (or $375,000 in the Valley/South Shore, or $300,000 in Northern/Eastern regions)
• Must have lived in Nova Scotia for at least 183 days/year
• Canadian citizen or permanent resident
• Credit score of at least 650

This loan is repayable when you sell the home or after a set period. Contact a mortgage broker or visit the Government of Nova Scotia website for application details.

HST New Housing Rebate — Nova Scotia

If you’re buying a newly constructed home, you may be eligible for a rebate of the provincial portion of the HST.

• Rebate: 18.75% of the provincial portion of HST, up to $3,000
• The home must be newly built and used as your primary residence
• You must not have previously owned and occupied a home

Note: Builders typically factor this rebate into the purchase price, so the listed price assumes the buyer qualifies. If you don’t qualify, the price may increase.

RRSP Home Buyers’ Plan (HBP)

The federal HBP lets you withdraw up to $60,000 (as of 2024) from your RRSP tax-free to buy your first home.

Key Details:

• Must be repaid to your RRSP within 15 years
• Repayment starts the second year after withdrawal
• If you don’t repay the minimum each year, that amount is added to your taxable income
• Both you and your spouse can each withdraw up to $60,000 if you’re both first-time buyers

First-Time Home Buyers’ Tax Credit (HBTC)

A federal non-refundable tax credit for first-time home buyers.

• Claim up to $10,000 on your tax return
• Provides up to $1,500 in tax relief (15% of $10,000)
• Must be claimed in the year you purchased the home
• Also available to buyers with a disability, even if not a first-time buyer

Closing Costs When Buying in HRM

Budget approximately 3% of the purchase price for closing costs. Here’s a typical breakdown for a $450,000 home:

Non-residents: As of April 2025, an additional 10% Provincial Deed Transfer Tax applies to non-residents purchasing residential properties (3 units or fewer) unless they become NS residents within 6 months.

Step-by-Step Home Buying Process in Nova Scotia

1. Get Pre-Approved: Meet with a mortgage broker or bank. Know your budget before you start looking.
2. Find a Realtor: In NS, you’ll sign a Buyer Brokerage Agreement with your agent. They represent your interests.
3. Search for Properties: Use Realtor.ca, ViewPoint.ca, and your realtor’s resources.
4. View Properties: Your realtor will arrange showings. Take notes and photos.
5. Make an Offer: Submit an Agreement of Purchase and Sale with your conditions (financing, inspection, etc.).
6. Conditions Period: Typically 5-10 business days to arrange financing, complete inspections, and review.
7. Home Inspection: Hire a qualified inspector ($400-$600). This is essential.
8. Remove Conditions: Once satisfied, you waive conditions and the sale becomes firm.
9. Hire a Lawyer: Your lawyer handles title search, deed transfer, and closing documents.
10. Closing Day: Sign documents at your lawyer’s office, pay closing costs, and get your keys!

Tips for First-Time Buyers in Nova Scotia

• Check your lease: Know exactly when you can leave your rental. Get it in writing.
• Save beyond the down payment: You’ll need 3% more for closing costs, plus moving expenses and potential repairs.
• Get a radon test: Radon is present in some Halifax-area homes. Professional testing costs $200-$300.
• Understand the CAP: The Capped Assessment Program caps annual assessment increases for existing owners. When you buy, the cap resets to full market value — so property taxes may be higher than what the seller was paying.
• Oil vs. electric: If the home uses oil heat, budget for fuel tank top-up at closing ($1,000-$1,500) and ongoing fuel costs.
• Well and septic: Properties outside municipal services need additional inspections ($1,000-$1,500). Factor this into your budget.
• Don’t skip the inspection: Even in a competitive market, a home inspection protects your investment.
• Research the neighbourhood: Visit at different times of day. Check transit routes, school zones, and future development plans on Halifax Open Data.