Federal Programs Available to NS First-Time Buyers
First Home Savings Account (FHSA)
Federal — Best Program
The FHSA is the most powerful first-time buyer tool available. Contributions are tax-deductible (like an RRSP), and withdrawals for a qualifying home purchase are completely tax-free (like a TFSA). Open one as early as possible — unused room carries forward.
- Contribute up to $8,000 per year, $40,000 lifetime
- Full tax deduction on contributions
- Tax-free withdrawal for first home purchase
- Available at most major Canadian banks and credit unions
- Must be a Canadian resident and have never owned a principal residence
RRSP Home Buyers' Plan (HBP)
Federal — Borrow from RRSP
The Home Buyers' Plan lets you withdraw up to $35,000 from your RRSP ($70,000 for a couple) tax-free to use as a down payment. You have 15 years to repay the amount. Best used in combination with the FHSA.
- Withdraw up to $35,000 from RRSP, tax-free
- Couples can withdraw $70,000 combined
- Repay over 15 years (minimum annual payment)
- Works alongside the FHSA
First-Time Home Buyer Tax Credit (HBTC)
Federal — $1,500 Tax Credit
Claim a $100 non-refundable tax credit on your federal tax return in the year you purchase your first home. This delivers up to $1,500 in tax savings.
- $100 credit × 15% = up to $1,500 federal tax savings
- Claim on Schedule 1 of your T1 return
- Split between two buyers if applicable
GST/HST New Housing Rebate
Federal — New Construction Only
If you're buying a newly built home in Nova Scotia, you may qualify for a partial GST/HST rebate. Nova Scotia also has a provincial portion rebate for new construction — confirm eligibility with your builder and lawyer.
- Applies to new homes and substantial renovations
- Federal portion rebate on homes up to $450,000
- NS provincial portion rebate may also apply
Note: No NS Provincial Deed Transfer Tax Rebate for First-Time Buyers (2025)
As of 2025, Nova Scotia does not offer a provincial rebate on the municipal deed transfer tax for first-time buyers. HRM's deed transfer tax of approximately 1.5% applies to all buyers regardless of first-time status. If this changes, we'll update this guide.
NS Deed Transfer Tax — What You'll Pay
Nova Scotia has no provincial land transfer tax. However, municipalities charge a deed transfer tax. Halifax Regional Municipality (HRM) charges approximately 1.5%. Other NS municipalities typically charge around 1% of the purchase price.
Frequently Asked Questions
Is there a first-time buyer rebate in Nova Scotia?
As of 2025, Nova Scotia does not offer a provincial rebate on deed transfer tax for first-time buyers. Federal programs including the FHSA, RRSP HBP, and HBTC all apply to NS buyers.
What is the best savings account for a first-time buyer in NS?
The First Home Savings Account (FHSA) is the best savings vehicle — contributions are tax-deductible and withdrawals for a home purchase are tax-free. Pair it with EQ Bank's 4.00% HISA while you accumulate your down payment.
How much do I need to earn to afford a home in Halifax?
For a $550,000 home with 5% down at current rates, you typically need household income of approximately $130,000–$150,000 to qualify. Use a mortgage affordability calculator to estimate your specific situation.
Can I use both the FHSA and RRSP Home Buyers' Plan?
Yes — you can combine both. Use the FHSA for tax-deductible contributions up to $40,000 lifetime, and the RRSP HBP for an additional $35,000 withdrawal. This means up to $75,000 per person ($150,000 per couple) tax-advantaged for a down payment.