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Purchase

Home Purchases in Atlantic Canada

Buying a home is one of the most significant milestones of your life, whether you’re searching for a character home in Halifax or Moncton, a starter property in Charlottetown or Fredericton, or expanding your family's roots in rural Corner Brook or Baddeck. The Atlantic real estate market is full of opportunity, but navigating down payment rules, hidden closing costs, and government incentives can quickly feel overwhelming.

At UMG Atlantic, we strip away the stress of home purchases. We don’t just find you a mortgage; we walk you through the entire journey from your initial offer to the day you get your keys. By accessing a massive shelf of broker-exclusive lenders, we customize a financing strategy that protects your hard-earned savings and sets you up for long-term financial freedom.

Here are the answers to the most common questions about purchasing a residential property in today's market:

How much down payment do I need to buy a home?

In Canada, the minimum down payment depends entirely on the purchase price of the property. For a home under $500,000, the minimum down payment is 5%. For homes priced between $500,000 and $1.5 million, you need 5% on the first $500,000 and 10% on the remaining balance. Anything over $1.5 million requires a full 20% down payment.

Source: Financial Consumer Agency of Canada

What are closing costs, and how much should I save?

Closing costs are the additional fees you must pay when a real estate transaction becomes final, and they generally total 1.5% to 4% of the purchase price. These include your real estate lawyer fees, home inspection costs, title insurance, and the provincial Land Transfer Tax (which in the Halifax Regional Municipality is 1.5%). Lenders require us to verify you have these extra funds available before final approval.

Source: Canada Mortgage and Housing Corporation (CMHC)

What first-time home buyer incentives are available?

There are federal programs designed to make home purchases more affordable for first-time buyers. The most powerful tool is the First-Home Savings Account (FHSA), which allows you to save up to $40,000 completely tax-free. Additionally, the Home Buyers' Plan allows you to withdraw up to $60,000 from your RRSP tax-free to use toward your down payment.

Source: Government of Canada - First-Home Savings Account
Source: Government of Canada - Hobe Buyers' Plan
Last updated July 1, 2026. Government actively reviews and changes these rules.

What is the difference between a fixed-rate and a variable-rate mortgage?

A fixed-rate mortgage locks your interest rate in place for your entire term, giving you absolute budget predictability. A variable-rate mortgage fluctuates alongside the Bank of Canada’s prime rate, meaning your payments or amortization can adjust up or down over time.

Which option is right for you depends entirely on your personal budget, timeline, and risk tolerance. Rather than a one-size-fits-all answer, our team at UMG Atlantic reviews your unique financial goals to help you choose the exact path that fits your life.

Source: Mortgage Alliance Canada

Can I buy a home if my down payment is a gift?

Yes! Lenders across Atlantic Canada gladly accept down payments that are gifted from immediate family members. To use these funds, the family member must sign a standardized "Gift Letter" confirming that the money is a true gift and does not ever have to be repaid, and we must show a bank statement proving the funds have been safely transferred to your account.

Specialized Purchase Programs

While many buyers look for a standard move-in-ready home, the real estate market in Atlantic Canada often rewards those who look at properties with hidden potential or choose to build from scratch. We help borrowers in two distinct areas that require a higher level of experience to coordinate.

Purchase Plus Improvements

Found a home with great "bones" but a dated kitchen or bath? A purchase plus improvements mortgage allows you to roll the estimated cost of immediate renovations directly into your primary mortgage at the time of closing. It is the single best way to turn a "fixer-upper" into your dream home without completely draining your post-closing cash savings.

How does a purchase plus improvements mortgage work?

Once you obtain a formal contractor quote for the planned work (such as a $20,000 main floor renovation), our team coordinates with our network of institutional lenders to add that renovation value to your total mortgage approval. This allows you to secure the property and the renovation funds all within one manageable mortgage with down payment options starting as low as 5%. The renovation funds are securely held in trust by your real estate lawyer while the work takes place and are released to pay your contractors the moment the project passes a final inspection.

Source: Sagen Canada Purchase Plus Improvements

New Construction Mortgages

Building a custom home from the ground up or buying a brand-new build in a developing subdivision requires a highly specialized financing framework known as a Progress Draw Mortgage. Unlike a standard home purchase where funds change hands all at once on closing day, construction financing requires money to be released in calculated intervals.

Can I get a mortgage for a new construction build?

Yes, but it requires a structured draw schedule aligned with your builder's timeline. Working with top-tier residential lenders, we coordinate the release of mortgage funds in stages — typically at the foundation pour, lock-up stage, drywall completion, and final occupancy. We manage the intensive paperwork and bank inspections behind the scenes so your project keeps moving forward smoothly.

Source: Sagen Canada Progress Advance Program

Simplify Your Home Purchase with UMG Atlantic

The right mortgage is about a framework that fits your real life, not necessarily the lowest rate. At UMG Atlantic, we manage the details, communicate with your realtor and lawyer, and ensure your home purchase goes smoothly from start to finish. Let’s make your homeownership goals a reality.

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