Active Mortgage · Planning tools
Compare 2% and 5% down in Nova Scotia
A smaller down payment and a loan to cover a down payment solve different problems. Start with the same example home and compare how each arrangement changes the mortgage and the cash needed at closing.
The 2% pilot scenario
This model assumes you contribute 2% from savings and borrow the remaining purchase price without a CMHC premium. The pilot described in the reference uses participating Nova Scotia credit unions and provincial backing rather than standard mortgage default insurance.
Your own savings still need to cover the modelled down payment and closing expenses. Confirm the lender’s current participation, qualification rules and permitted funding sources.
Discuss your options with our brokersThe 5% assistance-loan scenario
This model assumes a separate provincial assistance loan provides the full 5% down payment. The remaining purchase balance is insured, with a 4% CMHC premium added to the mortgage.
Borrowed down-payment funds do not disappear from your obligations. Review the assistance loan’s repayment requirements alongside your mortgage and household expenses.
Review a purchase plan with our teamOne purchase, two financing illustrations
$400,000 purchase · 4.49% (example rate only) · 25-year amortization · Canadian semi-annual compounding.
| What changes | 2% pilot model | 5% assistance model |
|---|---|---|
| Buyer cash for down payment | $8,000 from savings | $0 if assistance funds the full $20,000 |
| Insurance premium financed | $0 | $15,200 (4.00%) |
| Starting mortgage amount | $392,000 | $395,200 |
| Estimated monthly mortgage payment | $2,167/mo | $2,185/mo |
| Cash at closing in this model | $14,000 | $6,000; assistance repayment is separate |
2% scenario payment schedule
5% scenario payment schedule
Closing costs use a 1.5% illustration ($6,000). The mortgage payments exclude assistance-loan repayments and ongoing ownership costs. Insurance, rates, eligibility and funding availability must be checked for your application.
Team Active Mortgage
Nova Scotia down-payment scenarios
October 26, 2026
Your inputs
- Illustrative purchase price: $400,000
- Annual rate (example rate only): 4.49%
- Amortization: 25 years
- Modelled closing expenses: 1.5%
Check the program before making a commitment
The numerical illustration is not approval for either program. Income limits, purchase-price caps, credit requirements and participating lenders can change. Our brokers can help you review mortgage options, but a program administrator or participating lender needs to confirm the program itself.
Questions to consider
What is being compared here?
The 2% scenario models a buyer-funded down payment without a CMHC premium. The 5% scenario models an insured mortgage with a separate down-payment assistance loan. They are different borrowing arrangements, not two interchangeable mortgage quotes. Program availability and eligibility need confirmation before you rely on either.
Does the smaller mortgage payment show the whole cost?
No. The table compares mortgage principal and interest only. It does not include repayment of a separate assistance loan, property taxes, heating, insurance or other ownership expenses. Closing costs are modelled at 1.5% of the example price, not quoted for your purchase.
Can I assume both programs can be used together?
No. Do not assume that one program can fund the other’s down payment. Confirm the current rules with the relevant program administrator and lender, including funding sources and whether other assistance is permitted.
Send this comparison to someone
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Your lender’s terms, household budget and goals matter alongside the numbers. Our team can help you review your mortgage options.