by Dawn Magee
A Non-Resident's Guide to Buying a Home in Nova Scotia (2026)
Updated October 3, 2026, by Dawn Magee, REALTOR®, Royal LePage Atlantic
You can buy a home in Nova Scotia before you become a permanent resident. Whether you should, and what it will cost, depends on three things: your immigration status, where the home is, and whether you will live here. This guide walks through each one using the rules in force as of October 2026.
For more background, READ my previous article for Non-Residents from 2025 HERE
Quick answers
- Can a non-Canadian buy a home in Nova Scotia right now? Yes, outside Halifax and four census agglomerations, or anywhere if you hold a work permit with 183+ days left. The federal ban is scheduled to expire January 1, 2027.
- Can I get a mortgage before PR? Work permit holders can qualify for insured mortgages with 5% to 10% down.
- Do I pay Nova Scotia’s 10% non-resident tax? Only if you do not live here. You now have one year after closing to prove residency, up from six months.
- Is the Underused Housing Tax still a concern? It was eliminated for 2025 and later years.
- What if I live abroad and never move here? Expect 20% to 35% down, the 10% provincial tax, and a tax holdback when you sell.
What does "non-resident" mean when buying in Nova Scotia?
Three different tests decide which rules apply to you, and you can pass one while failing another. Nova Scotia asks where you file your income tax return. The Canada Revenue Agency asks whether you live in Canada. The federal foreign buyer ban asks whether you are a citizen or permanent resident.
Nova Scotia presumes you are a resident if you filed last year’s income tax return in Nova Scotia, and a non-resident if you filed anywhere else (Nova Scotia PDTT Guidelines). A Canadian citizen in Ontario is a non-resident of Nova Scotia but a resident of Canada. A work permit holder who has lived in Kentville for two years is a Nova Scotia resident even without PR.
Most buyers fit one of the three groups below.
Every group pays the municipal deed transfer tax, typically 1% to 1.5% depending on the municipality, plus legal fees, an inspection, and title insurance.
Buyer type | Example | Federal ban | NS 10% tax | Typical minimum down payment | When you sell |
1A. Canadian living in another province | Ontario family buying a cottage | Does not apply | Yes, unless you move here and prove it within 1 year | 5% for an owner-occupied second home; 20% for a rental | Normal rules; capital gains tax on a second home |
1B. Canadian or PR living outside Canada | Canadian expat in Boston | Does not apply | Yes, unless you move here and prove it within 1 year | Often 20% to 35% on foreign income | 25% holdback (50% on a rental) until CRA clearance |
2. Temporary resident in Nova Scotia | Nurse on a work permit, applying for PR | Exempt with 183+ days left on a work permit | No, if you file taxes in NS or prove your move | 5% to 10% insured | Normal rules while you live in Canada |
3. Foreign national moving to Nova Scotia | U.K. couple with a PR application underway | Applies inside census areas until at least Jan 1, 2027 | Yes, unless you move here and prove it within 1 year | 20% to 35% before you land; 5% once you are a PR | 25% holdback (50% on a rental) if you sell before becoming a Canadian tax resident |
Group 1: Canadians who do not live in Nova Scotia full time
This group includes Canadian citizens and permanent residents who live in another province or outside Canada. Many are buying a cottage, a retirement home, or a place near family.
Fees, taxes, and policies
- Federal foreign buyer ban: does not apply to citizens or permanent residents, wherever they live.
- Nova Scotia 10% non-resident tax: applies unless you move here and prove residency within one year of closing. There is no exemption for buying a home for your child to live in while studying here, or for renting the home to Nova Scotians (Nova Scotia PDTT Guidelines).
- Co-signers count. If a parent outside Nova Scotia goes on the deed to help you qualify, the tax applies to their share.
- Corporations do not get the moving exemption. Buying through a company means paying the tax.
- When you sell: Canadians in another province sell under normal rules. A second home does not get the principal residence exemption for the years it was not your main home, so expect capital gains tax. Canadians living abroad face the non-resident holdback described below.
Mortgage eligibility
- Living in another province: standard Canadian lending rules apply. An owner-occupied vacation or second home can qualify for insurance with as little as 5% down through Sagen or Canada Guaranty, limited to one insured vacation property per applicant (Sagen). A property you plan to rent out needs at least 20% down.
- Living outside Canada: lenders treat you like a non-resident borrower. Expect 20% to 35% down, proof of foreign income, and funds held in a Canadian account before closing.
Group 2: Temporary residents working toward PR
This group includes people in Nova Scotia on a work permit, study permit, or protected-person status who plan to stay. It is the fastest-growing group of buyers I work with.
Fees, taxes, and policies
- Federal foreign buyer ban: work permit holders are exempt with at least 183 days left on the permit on the purchase date, for one residential property. Some international students and protected persons are also exempt. Outside the five census areas, the ban does not apply.
- Nova Scotia 10% non-resident tax: if you filed last year’s return as a Nova Scotia resident, you are a resident and the tax does not apply. If you arrived this year, declare your move and submit proof of residency. A Nova Scotia health card (MSI) is the preferred proof.
- Down Payment Assistance Program: not available until you have PR.
- When you sell: while you live in Canada, you sell under normal rules. If you later leave Canada, the non-resident holdback applies.
Mortgage eligibility
- Work permit holders: insured mortgages are available with 5% down if you have 12+ months of Canadian credit, otherwise 10% (True North Mortgage).
- What lenders ask for: a valid work permit with enough time remaining, a SIN, an employment letter and pay stubs, and proof the home will be your primary residence.
- International students: options are limited. Expect 10% to 35% down, often with a co-signer.
- Protected persons: most insured programs are available with 5% down.
Group 3: Citizens of other countries moving to Nova Scotia
This group includes people outside Canada who plan to immigrate, whether their PR application is underway or they are still deciding. It also covers foreign buyers who want a vacation home and do not plan to move.
Fees, taxes, and policies
- Federal foreign buyer ban: applies inside Halifax and the Cape Breton, Kentville, New Glasgow, and Truro census areas until at least January 1, 2027. Rural properties outside those areas, homes with four or more units, and vacant land are open now.
- Nova Scotia 10% non-resident tax: applies unless you move here and prove residency within one year of closing. Proof requires a Nova Scotia health card or a driver’s license plus a second document, so time your purchase to your immigration timeline.
- When you sell: while you are not a Canadian tax resident, lawyer holds back 25% of the sale price, or 50% on a rental, until CRA issues a clearance certificate.
- Vacation buyers who will not move here: expect the full 10% tax, the federal ban inside census areas, and the holdback at sale.
Mortgage eligibility
- Before you arrive here: most lenders want at least 35% down, sometimes 20% for strong U.S. borrowers. CMHC insurance is not available.
- What lenders ask for: proof of foreign income, international credit reports, a Canadian bank account, and the down payment in a Canadian account at least 90 days before closing, or a 90-day paper trail from your foreign account.
- After you land as a PR: newcomer programs open up, with down payments from 5%. If your move is close, it can pay to wait until you land.
How has immigration to Nova Scotia changed in 2026?
Canada is holding permanent resident admissions steady at 380,000 a year from 2026 to 2028 while cutting new temporary residents. Nova Scotia’s nominee program now has four streams and prioritizes healthcare, skilled trades, and people already working here. More newcomers now buy homes while on a work permit while waiting for permanent residency.
The federal picture. New temporary resident arrivals are capped at 385,000 in 2026 and 370,000 in 2027 and 2028. Ottawa will also fast-track up to 33,000 temporary workers to permanent residency in 2026 and 2027 (IRCC).
The Nova Scotia picture. Nova Scotia’s overall allocation was cut from 6,300 in 2024 to 3,150 in 2025. After provincial pushback, Ottawa added 559 spots for a total of 3,709 (CBC). On February 18, 2026, the Nova Scotia Nominee Program merged 10 streams into four: Nova Scotia Graduate, Skilled Worker, Entrepreneur, and Nova Scotia Express Entry (GoFar Global).
Who gets priority. Healthcare and skilled trades are the only occupations open to applicants both inside Canada and abroad. Most other occupations are limited to temporary residents already living and working in Nova Scotia (Moving2Canada).
What this means for buyers. If you are here on a work permit and building toward PR, you do not have to keep renting until your card arrives. The next sections show how to buy now.
Can non-Canadians buy property in Nova Scotia?
Yes, with limits until at least January 1, 2027. The federal foreign buyer ban stops most non-Canadians from buying homes of one to three units in Halifax and in the Cape Breton, Kentville, New Glasgow, and Truro census areas. Rural properties outside those areas, homes of four or more units, and vacant land are available for purchase.
The law is the Prohibition on the Purchase of Residential Property by Non-Canadians Act. It took effect January 1, 2023, and was extended in 2024 to January 1, 2027. Citizens and permanent residents are not affected.
Where in Nova Scotia does the ban apply?
It applies only inside a Census Metropolitan Area or Census Agglomeration. Under the 2021 Census, Nova Scotia has five (Statistics Canada):
- Halifax (Census Metropolitan Area)
- Cape Breton (Census Agglomeration)
- Kentville (Census Agglomeration)
- New Glasgow (Census Agglomeration)
- Truro (Census Agglomeration)
The Kentville CA area boundaries do not follow town lines, so confirm any specific property with CMHC’s mapping tool.
Who is exempt?
- Work permit holders with 183 days or more left on the permit on the purchase date, buying no more than one residential property. The old tax-filing and work-history rules were repealed in March 2023 (MPA).
- Some international students who meet specific criteria.
- Refugees and protected persons.
- Buyers of vacant land zoned residential or mixed use, and buyers purchasing for development.
- Buyers of properties with four or more units, anywhere.
Breaking the rules can mean a fine of up to $10,000 and a court-ordered sale.
Will the foreign buyer ban end on January 1, 2027?
It will unless Ottawa acts. The federal government is reviewing what comes next, and as of this update no extension has been tabled (Pegasus Lending). One model under discussion would let foreign buyers purchase new construction but not existing homes. In September, the Globe and Mail’s editorial board urged Ottawa to narrow the ban rather than renew it (Globe and Mail).
There are three possible outcomes: the ban lapses, it is narrowed, or it is extended again. The rule that applies is the one in force on your purchase date, not the date you start looking. Do not sign anything based on headlines. Nova Scotia’s provincial 10% non-resident tax applies either way.
Can I get a mortgage in Nova Scotia before I become a permanent resident?
Yes. If you are legally authorized to work in Canada, you can qualify for an insured mortgage with as little as 5% to 10% down. You need a valid work permit with enough time remaining, a SIN, and the home must be your primary residence. Some lenders still ask for 20% or more.
Buying before PR means clearing three separate hurdles. Each one is decided by something different.
Hurdle | What decides it | What you need |
Federal foreign buyer ban | Your immigration status and the property’s location | Work permit with 183+ days left on the purchase date, or a property outside the five census areas |
Mortgage lender | Your status, income, and Canadian credit | Work permit, SIN, employment letter, 5% to 10% down for insured programs |
Nova Scotia 10% tax | Whether you live in Nova Scotia | Proof of residency within one year of closing |
How much down payment do work permit holders need?
CMHC’s Newcomers program covers non-permanent residents who are legally authorized to work in Canada (Best Home Mortgage). Through Sagen and Canada Guaranty, you need 5% down with at least 12 months of Canadian credit, otherwise 10% (True North Mortgage). Lenders will also look for a SIN starting with 9 (nesto).
What should I check before writing an offer?
- Your permit’s expiry date against your closing date. You need 183+ days left on the purchase date if the home is inside a census area.
- A pre-approval from a newcomer-friendly lender. Ask specifically about insured programs for work permit holders.
- Your proof of Nova Scotia residency. A Nova Scotia health card (MSI) is the preferred proof. A driver’s license also works with a second document, such as a utility bill or lease.
- Whether you are a first-time buyer for program purposes. It affects which supports you can stack later to your purchase. Such as below.
Can I use Nova Scotia's Down Payment Assistance Program?
Not until you have PR. The program requires buyers to be Canadian citizens or permanent residents who live in Nova Scotia at least 183 days a year (First Time Home Buyers Assistance). Plan for it once your PR comes through.
How does Nova Scotia's 10% non-resident deed transfer tax work?
Nova Scotia charges non-residents 10% of the purchase price or assessed value, whichever is higher, when they buy residential property with three units or fewer. It is paid on top of the municipal deed transfer tax. If you move to Nova Scotia and prove residency within one year of closing, you are exempt.
The tax depends on where you live, not on your citizenship. It applies to Canadians from other provinces too, and it does not apply to a work permit holder who files their income tax return in Nova Scotia (Government of Nova Scotia). In 2025-26, non-resident buyers paid about $18.4 million in this tax across 1,791 transactions.
What changed in August 2026?
On August 7, 2026, the Province changed the tax guidelines to support people moving here permanently (Province of Nova Scotia). The rate stays at 10%.
Rule | Before | Now |
Time to provide proof of residency | 6 months | 1 year |
Extensions to the deadline | Case by case | Circumstances clarified |
Property willed to a non-resident after a death | Taxable | Exempt |
Time to apply for a refund | 1 year | 2 years |
Who can receive a refund | The buyer | The buyer or a legal representative |
Can I get a Canadian mortgage if I live outside Canada?
Yes, but expect a larger down payment. Most lenders ask non-resident borrowers for at least 35% down, though strong U.S. borrowers sometimes qualify with 20%. CMHC mortgage insurance is not available for these loans, and the down payment usually must sit in a Canadian bank account before closing.
- Down payment. Typically 35%, sometimes 20% for U.S. residents with strong credit and income.
- Proof of income, an employment letter, and international credit reports.
- Some lenders want several months of mortgage payments held in a Canadian account.
- Timing of funds. Lenders typically want 90 days of statements showing where the down payment came from. Plan to move it to a Canadian account at least 90 days before closing. If it arrives later, a paper trail showing the funds in your foreign account for 90+ days may be accepted instead. Gifts generally are not allowed for non-resident borrowers.
- Exchange rates can change what your down payment is worth in Canadian dollars, so plan the transfer early.
If you plan to move here, tell your lender. Being a future resident can open newcomer programs with better terms.
What are the steps to buy a home in Nova Scotia as a newcomer?
- Confirm your status and the property’s location. Check your work permit dates and whether the area falls inside a census area.
- Get pre-approved. Use a lender or broker who handles newcomer and non-resident files.
- Budget for every cost. Include deed transfer tax, the 10% non-resident tax if it applies, legal fees, an inspection, and moving costs. HST of 15% applies to many services and to new construction.
- Choose your community. City life in Halifax, a university town like Wolfville, or a quiet coastal village each suit different lives. Visit in person or tour virtually.
- Hire a Nova Scotia real estate lawyer early. They handle title, closing, the deed, and the residency paperwork, and can arrange remote signing.
- Protect yourself in the offer. Keep financing and inspection conditions, plus well and septic testing for rural homes.
- Prove residency after closing. Get your Nova Scotia driver’s licence and health card, then file your proof within one year.
Frequently asked questions
Can I buy a house in Nova Scotia on a work permit?
Yes. You need at least 183 days left on your permit on the purchase date, and you can buy only one residential property under this exemption. Outside Halifax and the Cape Breton, Kentville, New Glasgow, and Truro census areas, the federal ban does not apply.
Do I have to pay the 10% tax if I am moving to Nova Scotia?
No, as long as you prove Nova Scotia residency within one year of closing. Each buyer on the deed must qualify for the exemption to cover their share.
Does the 10% tax apply to Canadians from other provinces?
Yes. The tax is based on where you live, not your citizenship. A buyer from Ontario who does not move here pays it.
Is there a vacancy tax on Nova Scotia homes owned by foreigners?
Not anymore. The federal Underused Housing Tax was eliminated for 2025 and later, and Nova Scotia scrapped its proposed annual non-resident tax in 2022.
What down payment do I need as a newcomer?
Permanent residents and work permit holders can qualify for insured mortgages with 5% to 10% down. Buyers living abroad usually need 20% to 35%.
Can I inherit a Nova Scotia home without paying the 10% tax?
Yes. As of August 2026, property willed to a non-resident after a death is exempt.
How long must a foreign buyer's down payment be in a Canadian bank before closing?
There is no law setting a waiting period; each lender sets its own. Most want 90 days of statements showing where the money came from, so move it to a Canadian account at least 90 days before closing. If it arrives later, a 90-day paper trail from your foreign account may be accepted.
Final thoughts
Buying in Nova Scotia before PR is more doable in 2026 than many newcomers expect. Check your permit dates, get pre-approved early, and plan your proof of residency from day one. The foreign buyer ban may change in January, so confirm the rules before you sign.
If you are planning a move to the Annapolis Valley, I would love to help you find the right community and the right home. Welcome to Nova Scotia, or as we say here, Céad Míle Fáilte: a hundred thousand welcomes.
This guide is general information, not legal, tax, or immigration advice. Confirm your situation with a Nova Scotia lawyer, an accountant, and a licensed immigration professional.
Sources
- Changes to Non-Resident Deed Transfer Tax, Province of Nova Scotia, August 7, 2026
- Non-resident Provincial Deed Transfer Tax, Government of Nova Scotia
- Prohibition on the Purchase of Residential Property by Non-Canadians Act, CMHC
- CMHC revisions to the foreign buyer ban, MPA
- Foreign Buyer Ban: What Ottawa’s Review Means, Pegasus Lending
- A fix for the foreign buyer ban, Globe and Mail, September 10, 2026
- 2021 Census geographies for Nova Scotia, Statistics Canada
- Supplementary Information, 2026-2028 Immigration Levels Plan, IRCC
- S. immigration allocation increase, CBC
- Canada PNP 2026, GoFar Global
- Nova Scotia PNP 2026, Moving2Canada
- 2025 federal budget: other tax measures, BDO
- Newcomers to Canada, True North Mortgage
- Permanent resident vs. work permit mortgages, Best Home Mortgage
- Mortgage options for newcomers, nesto
- Down Payment Assistance Program, Perkins Real Estate
- Non-Resident Provincial Deed Transfer Tax Guidelines, Nova Scotia Department of Finance and Treasury Board
- Vacation/Secondary Homes program, Sagen
This guide will explain the steps to home buying but also provide the knowledge make sound decisions about one of the biggest investments of your life.
