Updated: April 2025  |  bremo.io financial guides

Canada Learning Bond — Free RESP Money for Lower-Income Families

The Canada Learning Bond (CLB) is one of the most underutilized financial programs in Canada. It deposits up to $2,000 directly into an RESP for children from lower-income families — and you don't need to contribute a single dollar of your own money to receive it. Yet roughly half of eligible families never claim it.

How Much Is the Canada Learning Bond?

The CLB provides:

• Initial payment: $500 in the first year your child is eligible
• Annual payments: $100/year for each subsequent year of eligibility (up to age 15)
• Maximum total: $2,000 per child ($500 + $100 × 15 years)

Payments are deposited directly into the child's RESP by the federal government.

Income Eligibility

The CLB is income-tested based on your adjusted family net income and the number of children in your family. For 2025, approximate thresholds are:

If your income fluctuates year to year, you may be eligible in some years and not others. The CLB is paid for every year your family meets the income requirement while the child is under 18.

How to Apply for the CLB

To receive the CLB, you must:

1. Open an RESP for your child at a financial institution
2. Apply for the CLB through the RESP provider — they submit the application to the ESDC on your behalf
3. Ensure you've filed your income tax returns (both parents/guardians must file)
4. Ensure your child has a Social Insurance Number

You do not need to make any contributions to the RESP to trigger the CLB. Simply opening the account and applying is sufficient.

Why Don't More Families Claim It?

Studies have found that many lower-income families don't open RESPs because they believe they can't afford to contribute. The CLB was designed specifically to remove this barrier — but awareness is low. Community organizations, Indigenous organizations, and some financial institutions have programs to help families open RESPs and access the CLB.

CLB Combined with CESG

Families who qualify for the CLB may also qualify for the additional CESG (higher grant rate). If you can make even small contributions to the RESP, you may be eligible for a 30–40% grant rate on the first $500 contributed, on top of the CLB.

The CLB Grows Tax-Sheltered

The $500 and subsequent $100 annual payments are invested in the RESP and grow tax-sheltered. If invested in a diversified portfolio, the initial $2,000 in CLB can grow significantly by the time your child reaches post-secondary age. Even if you never add a dollar, the CLB alone can contribute meaningfully to your child's education fund.

What Happens If Your Child Doesn't Go to School?

The CLB stays in the RESP until your child uses it for eligible post-secondary education. If the child doesn't pursue post-secondary school, the CLB (but not any growth on it) is returned to the government. The CLB cannot be transferred to an RRSP.