62 - Starter Home Rent-to-Own Program | Nova Scotia

Summary#

This bill creates a provincial rent-to-own program to help first-time homebuyers with modest incomes. The goal is to build “starter homes” and let people rent them while saving for a down payment to buy.
The program must be running by January 1, 2027.
Key points:
- The Province will build prefabricated homes in at least four Nova Scotia locations, with at least 25 homes in each place (minimum 100 homes total).
- Homes will be offered under rent-to-own agreements to first-time buyers who cannot get a traditional bank mortgage and have a household income under $100,000.
- Rent is capped at 30% of the household’s income.
- Half of each month’s rent is saved in a down-payment account for the tenant.
- Once the savings reach 20% of the home’s price, the tenant can use it to buy that home (or withdraw it to buy a private-market home), if they can get financing for the rest.
- These homes carry a long-term rule (a “restrictive covenant”) that limits future resale to lower-income buyers, a child of the owner, or the Province.

Eligible first-time buyers
- You can apply if you have never owned a home, your household income is under $100,000, and you cannot qualify for a regular mortgage now.
- Your rent cannot be more than 30% of your household income, which helps keep payments manageable.
- Half your rent is saved for you. This builds a down payment over time.
- When your savings reach 20% of the price, you may buy the home or take the money to buy another home. You will still need financing for the rest of the cost.
Couples buying together
- Both people must be first-time buyers, have a combined household income under $100,000, and be unable to get a traditional mortgage to qualify.
Current renters and families
- This creates a new path to ownership if you are shut out of mortgages today but can afford stable rent.
- If you later own one of these homes, you can sell it to your child, to another lower-income buyer (based on rules the government may set), or back to the Province.
Homeowners in the program
- If you end your rent-to-own agreement without buying, the home stays with the Province and will be offered to someone else in the program.
- When you resell in the future, who you can sell to is limited by the covenant attached to the home.
Communities
- At least four communities will see new prefabricated home clusters, which may add local housing supply.

No publicly available information.

Helps renters become owners by turning part of their rent into savings for a down payment.
Caps rent at an affordable share of income, reducing housing stress.
Builds more entry-level homes, using prefabrication to speed up construction and control costs.
Keeps these homes affordable over time by limiting resale to lower-income buyers or family.
Offers flexibility: buy the program home or use the savings to buy on the private market when ready.

Unknown cost to taxpayers; the Province must fund building and administration, but no budget is provided in the bill.
The 30% rent cap and saving half the rent could mean program revenues do not cover costs.
Buyers still need financing for the remaining price at purchase; some may reach 20% down but still fail to get a mortgage.
Resale limits may reduce the owner’s ability to build wealth or sell quickly at market price.
Limited scale (minimum 100 homes) and fixed locations could leave long waitlists or miss high-demand areas.
Many people just above the income cap, or who barely qualify for a mortgage, are excluded even if they struggle to buy.