When buying your first home, it’s common to hear about programs, incentives, and grants that are “designed to help first-time buyers.” What’s less common is a clear explanation of what these programs actually do, who they’re for, and how much impact they really have.

This guide explains the most common first-time home buyer programs available to buyers purchasing in Kingston, and how they fit into a realistic buying plan.

A Quick Reality Check About Buyer Programs

First-time buyer programs are meant to support a purchase — not replace savings, income, or planning.

They can:

• Reduce certain upfront costs
• Help buyers save more efficiently
• Improve cash flow at specific stages
  
  

They cannot:

• Eliminate the need for a down payment
• Make an unaffordable purchase affordable
• Replace long-term financial readiness
  
  

Understanding this upfront prevents disappointment later.

Land Transfer Tax Refund for First-Time Buyers

In Ontario, eligible first-time buyers may receive a refund on a portion of the provincial land transfer tax.

What this means:

• The refund can reduce closing costs
• It applies only to land transfer tax
• It does not help with the down payment
  
  

This is most useful as a closing-day cost reduction, not as a purchasing-power boost.

First Home Savings Account (FHSA)

The First Home Savings Account allows eligible buyers to save specifically for their first home in a tax-advantaged way.

Key features:

• Contributions are tax-deductible
• Withdrawals for a qualifying first home are tax-free
• There are annual and lifetime contribution limits
  
  

This program works best for buyers who plan ahead and aren’t purchasing immediately.

RRSP Home Buyers’ Plan (HBP)

The Home Buyers’ Plan allows first-time buyers to withdraw funds from their RRSP to use toward a down payment.

Important considerations:

• Withdrawals must be repaid over time
• Missed repayments can be taxed as income
• It reduces retirement savings if not planned carefully
  
  

This can be a helpful tool, but it’s not free money, it’s a temporary reallocation of savings.

Insured Mortgages and Low Down Payment Options

First-time buyers with less than 20% down typically use insured mortgages.

This allows:

• Lower minimum down payments
• Earlier entry into the market
  
  

However, it also includes:

• Mortgage insurance premiums
• Higher overall borrowing costs
  
  

These options increase accessibility, but buyers should understand the long-term trade-offs in costs.

What These Programs Don’t Replace

Even with programs in place, first-time buyers still need:

• Stable income
• Good credit
• Closing cost funds
• Monthly affordability margin
  
  

Programs are most effective when paired with thoughtful planning, not rushed decisions.

How First-Time Buyers Use Programs Wisely

Buyers who benefit most from programs tend to:

• Learn about them early
• Combine multiple tools strategically
• Understand both the benefits and limitations
• Plan around comfort, not maximum approval
  
  

Programs should reduce stress, not create new pressure.

A Smarter Way to Think About Buyer Programs

Instead of asking: “What programs will let me buy sooner?”

A better question is: “Which programs support a purchase that already makes sense?”

That mindset leads to stronger decisions and better long-term outcomes.

Thinking About Buying Your First Home?

Every buyer’s situation is different, and not every program applies to every purchase. If you’d like help understanding which options may be relevant for you and how they fit into a realistic plan. We’re happy to talk things through and help you move forward with clarity.