The province announced a new housing program that is designed to help Nova Scotians with a “modest-income” purchase their first home.
Residents working to save for a down payment could soon get an interest-free loan from Housing Nova Scotia.
Joanne Bernard, Minister responsible for Housing Nova Scotia, along with MP Andy Fillmore, announced a combined investment of $1.3 million to fund a new one-year Down Payment Assistance Program.
"While we continue to help our most vulnerable citizens with housing supports, we can't forget that many modest-income families want to buy homes so they can lay down roots here in Nova Scotia,” Bernard said in a news release on Wednesday.
The province says the program is designed to help “modest-income” Nova Scotians, who are pre-approved for an insured mortgage from an accredited lender. But they struggle to save for the required down payment because of their income.
First-time homebuyers will be eligible for an interest-free loan of up to five per cent of the purchase price of a new or existing home, to a maximum price of $280,000 in Halifax regional municipality and $150,000 in the rest of the province.
This means the loans will range up to $14,000 in HRM and $7,500 in other parts of the province.
To be eligible, applicants must have a total household income of $75,000 or less. The amounts will vary based on the applicants' income and the house purchase price.
Eligible homebuyers will then have ten years to repay the loan.
“This will have a positive impact on new homeowners, and contribute to building a strong foundation for a sustainable economic future,” Fillmore said in a release.
The province says it’s expected that the pilot program will help between 100 and 125 households.
Applications will be available at Housing Nova Scotia's regional offices and online starting May 1