Canada Learning Bond Guide 2025

Updated March 2025 · 10 min read

The Canada Learning Bond (CLB) is one of the most underutilized government benefits in Canada. It deposits free money directly into a child's Registered Education Savings Plan (RESP) for eligible low-income families — no contributions required. Yet hundreds of thousands of eligible children never receive it simply because their families don't know it exists or haven't opened an RESP.

What Is the Canada Learning Bond?

The CLB is a federal government grant deposited into an RESP for children from low- and modest-income families. It was created specifically to help families who cannot afford to save for post-secondary education still benefit from the RESP system.

The CLB provides:

• $500 when the RESP is first opened (the initial installment)
• $100 each subsequent year the family remains eligible, until the child turns 15
• Maximum total: $2,000 over the life of the bond (if eligible from birth to age 15)

Who Qualifies for the Canada Learning Bond?

Eligibility is based on family income and the number of children. For 2024, approximate income thresholds are:

• Families with 1–3 children: net family income below approximately $50,000
• Families with 4 or more children: higher thresholds apply

The exact income thresholds are tied to the National Child Benefit Supplement (NCBS) phase-out thresholds, which are updated annually by the federal government. The child must also:

• Be a Canadian resident
• Have a Social Insurance Number (SIN)
• Be born on or after January 1, 2004 (to receive any remaining payments)
• Have an RESP in their name

How to Apply for the Canada Learning Bond

You do not apply directly to the government for the CLB. Instead:

1. Open an RESP for your child with a financial institution, bank, credit union, or scholarship trust
2. When opening the RESP, inform the promoter that you want to apply for the CLB
3. The promoter submits the CLB application to Employment and Social Development Canada (ESDC) on your behalf
4. ESDC assesses eligibility based on your tax information
5. If approved, the funds are deposited directly into the RESP — no out-of-pocket contribution required

You must file your taxes every year for continued annual $100 payments to flow, even if you owe nothing and have no income to report. The CLB eligibility check runs through your filed tax data.

Why So Many Families Miss the CLB

The take-up rate for the Canada Learning Bond among eligible families is shockingly low — estimated at under 40% in many communities. Reasons include:

• Families don't know the benefit exists
• Families assume they need to contribute money to an RESP to access it
• Fear of complicated paperwork or government processes
• No access to a financial institution or unfamiliarity with RESPs
• Not filing taxes (a required step for eligibility)

Where to Open an RESP for the CLB

You can open an RESP at any major bank, credit union, or investment dealer. For CLB-specific assistance:

• Knowledge First Financial: Specializes in group RESPs and CLB applications
• TD, RBC, BMO, Scotiabank, CIBC: All offer individual RESPs and CLB applications
• Community organizations: Many non-profits and community groups help low-income families open RESPs and apply for the CLB at no cost

What the CLB Can Be Used For

CLB funds in an RESP can be used for any eligible post-secondary education — university, college, trade school, apprenticeship programs. Withdrawals for education are called Educational Assistance Payments (EAPs) and are taxed as income in the student's hands, not the parents'. Since most students have low income, the tax is minimal or zero.

What If the Child Doesn't Pursue Post-Secondary Education?

If the CLB recipient doesn't pursue post-secondary education, the Canada Learning Bond must be returned to the government. The CLB itself belongs to the child and cannot be kept by parents if not used for education. However, any investment growth on the CLB within the RESP can be withdrawn (as an Accumulated Income Payment), subject to tax plus a 20% penalty.

CLB vs. CESG

The Canada Learning Bond and the Canada Education Savings Grant (CESG) are separate programs:

• CLB: Free money deposited without any contribution, for low-income families only
• CESG: 20% matching grant on the first $2,500 contributed per year, available to all families

A family qualifying for the CLB can also receive CESG on any contributions they make, making the RESP even more valuable.