For a first-time home buyer New Brunswick, facing competing offers can feel overwhelming. Prices can rise fast, and sellers may lean toward offers that drop important safeguards. Without a plan, it is easy to give in to pressure and make choices that could stretch your budget or cause problems later. This guide from BestMO explains how to stay in the game and make a strong offer while keeping the protections you need.
How to qualify for NB first-time home buyer incentives?
To qualify for the first-time home buyer incentive in New Brunswick, you will need to meet specific income and residency requirements:
- Have lived in New Brunswick for at least 12 months
- First-time homeowner or current resident in substandard housing
- Total debt service ratio not exceeding 42% of gross income
- Property must qualify for a 25-year uninsured mortgage (20 years for manufactured homes)
- Total household income below $40,000
To get verified for the income, there are four documents to provide:
- Previous year’s Notice of Assessment from Canada Revenue Agency
- Recent pay stubs covering three months
- Bank statements showing regular deposits
- Evidence of non-employment income (e.g. child maintenance, pension, benefits)
What are the available NB first-time home buyer incentives?
New Brunswick offers 3 main programs for first-time home buyers:
NB Home Ownership Program
New Brunswick’s Home Ownership Program is a down payment assistance program that offers substantial financial help through repayable loans. The coverage is based on your housing choice:
- For existing homes: Cover 40% of the purchase price, closing costs, and modest repairs through a repayable loan. Buyers must still qualify for uninsured mortgage financing from approved lenders for the remaining 60%.
- For new construction: Support increases to 50% of total construction costs, capped at $75,000. Applicants need proof of private financing to ensure project completion alongside government assistance.
Interest rates scale with household income levels. Families earning under $30,000 pay 0% interest. Each additional $1,000 in income increases the rate by 0.5% until it reaches the provincial borrowing rate. Mortgage amortized over 25 years with annual renewal terms.
New Brunswick Homeowners’ Property Tax Rebate
This is a provincial benefit that reduces the provincial portion of your property taxes and does not affect the municipal portion. The amount of the rebate is based on your property’s assessed value and the provincial tax rate, so savings vary. While many households save around $600 per year, there is no fixed maximum amount.
You only need to apply once. After approval, you will continue receiving the credit automatically each year as long as you continue to own and occupy the property as your principal residence. If your ownership or occupancy changes, you must notify Service New Brunswick.
The NB Property Tax Allowance is an additional benefit for low‑income homeowners who already receive the residential tax credit. The rebate is:
- Up to $300 if income is under $22,000
- Up to $200 between $22,001 and $25,000
- Up to $100 between $25,001 and $30,000
Federal programs for first-time buyers in New Brunswick
Beyond the provincial program, these federal options expand your toolkit:
Home Buyers’ Plan (HBP): Withdraw up to $60,000 from your RRSP tax-free ($120,000 for couples). You will have 15 years to repay it, with payments starting in year three.
Home Buyers’ Amount: Claim $10,000 on your taxes for a refund up to $1,500. You can split this with your spouse or co-buyer if purchasing together.
GST/HST New Housing Rebate: Get back 36% of the GST you paid if your home costs $350,000 or less. Partial rebates apply up to $450,000.
Can NB buyers combine multiple assistance programs?
Yes, you can stack federal and provincial programs to maximize your buying power. They operate independently, but they have simultaneous participation without penalty reduction.
How multiple offers affect first-time home buyers in New Brunswick
The pressure to bid higher or remove protective conditions can push you beyond your comfort zone. When combining first-time home buyers programs, you can:
- Increase your offer price, but never go beyond your mortgage approval limit.
- Keep your offer as is and hope it stands out on its own.
- Adjust conditions to make your offer more appealing to the seller.
- Walk away and look for another home that better fits your needs and budget.
How to protect your interests while taking advantage of the NB first-time home buyer programs:
Get pre-approved first: A firm mortgage pre-approval shows sellers you are serious and financially ready. Unlike pre-qualification, pre-approval involves thorough credit checks and verification of income.
Consider pre-inspections: If the seller allows, inspect the home before making an offer. This will enable you to submit an offer without an inspection condition, while still knowing what you are buying.
Write a personal letter: Sometimes connecting with sellers on an individual level makes a difference. Share why you love their home and your plans for it.
Stay flexible on timing: If you can accommodate the seller’s preferred closing date, be sure to mention this in your offer. Flexibility often trumps a slightly higher price.
Discover first-time home buyer programs for other provinces in Canada:
- First-Time Home Buyer BC
- First-Time Home Buyer Alberta
- First-Time Home Buyer Ontario
- First-Time Home Buyer SK
- First-Time Home Buyer PEI
- First-Time Home Buyer Nova Scotia
- First-Time Home Buyer Manitoba
- First-Time Home Buyer Newfoundland and Labrador
- First-Time Home Buyer Quebec
Frequently asked questions about First-time home buyer New Brunswick
What are the down payment requirements in New Brunswick?
For properties under $500,000, a minimum down payment of 5% is required. For homes priced between $500,000 and $1,499,999, the required down payment is 5% on the first $500,000 plus 10% on the remaining balance. For properties valued at $1.5 million and up, a 20% down payment is required.
What are legal fees for buying a house in New Brunswick?
They can range from $1,000 to $3,000, plus disbursements for things like title searches, government registration fees, and courier charges.
What credit score is needed to get a mortgage in New Brunswick?
A credit score of at least 600 is required, but lenders prefer scores above 680 for the best rates and more favourable terms.
Do I need a real estate agent in New Brunswick?
No. While not strictly mandatory, a real estate agent can find properties, navigate the market, negotiate offers, and understand contracts, especially for first-time buyers.
What are the requirements for home insurance in New Brunswick?
While not mandated by law, mortgage lenders will require it in place by your closing date to protect against perils like fire, water damage, and theft.
The bottom line
A first-time home buyer in New Brunswick needs to find the right balance between aiming high and staying cautious. With a smart strategy, you can improve your chances of getting the home you want while protecting your finances. Remember to make sure your first purchase is both a wise investment and a satisfying achievement.
