The Down Payment Assistance Program (DPAP) assists Nova Scotians with modest incomes who pre-qualify for an insured mortgage to purchase their first home. Eligible participants can apply to receive an interest-free repayable loan of up to five per cent of the purchase price of a home.
· The purchase price of the home may not exceed $280,000 in the Halifax Regional Municipality (HRM) and $150,000 in the rest of the province.
· Participants must have good credit and be pre-approved for an insured mortgage by a recognized financial institution.
For an applicant to be eligible for the assistance, the following criteria must be met:
o The property is in Nova Scotia
o The applicant is a first-time home buyer
o The applicant is pre-approved for an insured mortgage by a recognized financial institution
o The applicant has a satisfactory credit rating
o The applicant has reviewed the educational material for first-time home buyers provided by Housing Nova Scotia
o The applicant’s total household income is less than $75,000
o The applicant has resided in Nova Scotia for at least 12 months
The purchased property must be the applicant’s principal residence; rental properties, seasonal and recreational properties are not eligible.
· The loans are interest-free and are repayable over ten years. Participants may waive their payments in the first year.
· The loan must go toward the down payment and cannot be used for financing, closing or other costs.
· The down payment assistance loans can range between up to $7,500 and up to $14,000.
· The pilot program starts on May 1, 2017 and loans will be advanced between May 1, 2017 and March 31, 2018.
· The program will help between 100 and 125 households based on Federal and Provincial funding of $1.30 million.
· The program is based on a first come, first served basis.