Canada Learning Bond: No RESP contributions required
Author: Sound Choices
September 25, 2020
What you need to know about the Canada Learning Bond (CLB)
The content in the article below is meant for Canadian investors only.
The CLB is a grant that the federal government deposits directly into an RESP every year if the child is eligible, even if the parents don’t add any money.
How much is the CLB?
- The first year: $500 (plus $25 to help cover the costs of opening the RESP)
- The following years: $100 for each year that the child is eligible – until the calendar year in which they turn 15
- Lifetime maximum: $2,000 per beneficiary
Who is eligible for the CLB?
Any child born on or after January 1, 2004 if they are Canadian residents and have a valid Social Insurance Number.
In 2018, 3.3 million children were eligible for the Canada Learning Bond, but only about 38% or 1.3 million actually received it.*
Is there a maximum income level?
Beginning July 1, 2017**, eligibility for the Canada Learning Bond is based, in part, on the number of qualified children and the adjusted income of the primary caregiver.†
Eligibility thresholds†† (July 1, 2020 to June 30, 2021)
|Number of qualified children||Adjusted income|
|1 to 3||Up to $48,535|
|4||Less than $54,764|
|5||Less than $61,016|
|6||Less than $67,268|
How do I apply for the CLB?
- Ensure your tax returns are up to date
- Open an RESP with the child named as a beneficiary – make sure the RESP provider can handle the CLB as not all do
- Apply for the CLB – it must be the primary caregiver or their partner who applies
Once the application is approved, the appropriate amount will be deposited directly into that RESP every year that the child is eligible to receive it.
For more information on RESPs, visit AGF.com/RESP or contact your financial advisor.
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.
For further information, please visit AGF.com.
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