The provincial government of Nova Scotia has recently introduced a new initiative aimed at tackling one of the significant barriers to home ownership: saving for a down payment. The newly announced 'First-time Homebuyers Program', unveiled by Housing Minister John White on Tuesday, offers eligible buyers the opportunity to make a down payment of just 2 percent on their first home. This initiative is designed to ease the financial burden on potential homeowners in the province.
Under this program, house prices must be at or below specific thresholds to qualify. In the Halifax Regional Municipality and East Hants, eligible property prices are capped at $570,000, while the limit is set at $500,000 elsewhere in Nova Scotia. This reflects a targeted effort to ensure that first-time buyers in various regions of the province have access to affordable housing options.
Minister White emphasized the feedback received from Nova Scotians regarding the challenges posed by the current rental market, stating, "Nova Scotians told us that in today’s rental market, they are struggling to save the down payment to buy a new home." He further added that this program aims to make it more feasible for individuals and families to gather the necessary funds for a down payment, thereby facilitating the achievement of homeownership.
The implementation of the program is a collaborative effort involving Atlantic Central and various credit unions throughout Nova Scotia, aimed at providing greater support to first-time homebuyers. This partnership is crucial for promoting the program and making the process of purchasing a home more accessible and manageable for eligible residents.
To qualify for the 'First-time Homebuyers Program', prospective borrowers must meet specific criteria. This includes maintaining a household income of $200,000 or less and successfully passing the Canada Mortgage and Housing Corporation (CMHC) mortgage stress test. Furthermore, applicants must have a credit score that exceeds 630. Eligibility is also restricted to Canadian citizens, permanent residents, or immigrants who possess a sponsorship letter from the Nova Scotia provincial immigration program.
This program is a significant development in Nova Scotia's housing landscape, addressing a critical issue for many residents. With the rising costs of real estate and the challenges of saving for a down payment, the First-time Homebuyers Program represents a proactive step toward increasing home ownership rates in the province and supporting families in achieving their dreams of homeownership.
