Canada Learning Bond simplified

Plain-language summary

• The Canada Learning Bond is federal RESP money for eligible children from low-income families.
• Canada.ca says eligible children born in 2004 or later can receive an initial $500 for the first eligible year, plus $100 for each additional eligible year up to age 15.
• The maximum CLB is $2,000 per eligible child.
• Families do not need to contribute their own money to receive the CLB, but the child still needs an RESP where the bond can be deposited.
• When the first $500 CLB is deposited, ESDC also pays $25 into that RESP to recognize a one-time incidental cost that may come with opening the account.
• The beneficiary must be under age 21 when the CLB is requested.
• If the beneficiary does not pursue eligible post-secondary education, unused CLB is returned to the government.

Action steps

1. Get a Social Insurance Number for the beneficiary and for the person opening the RESP, if they do not already have one.
2. Choose an RESP promoter that supports the Canada Learning Bond before opening the account.
3. Open the RESP and name the eligible child as beneficiary.
4. Ask the promoter to apply for the CLB when the RESP is opened. Do not let a lack of contribution money stop the CLB request.
5. Make sure the primary caregiver information is correct, because adjusted family income and Canada Child Benefit records are part of how income-tested benefits are assessed.
6. Check the account statement after the application is processed and follow up if the CLB does not appear after several weeks.
7. If the beneficiary is already a youth or young adult, ask whether they can open an RESP for themselves and request unpaid CLB before age 21.

Caveats to watch

• The CLB is not automatic in every existing RESP. A promoter still has to support and process the benefit application unless a future automatic-enrolment process applies.
• No personal contribution is required for CLB, but contributions are still needed if the family wants to receive CESG.
• The child must meet the CLB eligibility rules for the relevant years. Being named in an RESP does not guarantee every possible year of CLB.
• Children in care of a public primary caregiver may also be entitled to CLB under the government rule.
• Family plans need careful tracking. Canada.ca says CLB can be paid only to eligible children in the plan, up to $2,000 per child.
• A group plan or scholarship plan can still have contract rules, regular-payment expectations, or fees. Do not choose a plan only because it can request CLB.
• The under-age-21 application rule matters for late starters. Waiting until the beneficiary is 21 or older can mean missed CLB cannot be requested.
• If the child never attends eligible post-secondary education, the CLB portion does not become family cash.

Examples

Example: eligible family with no savings yet

A parent cannot afford contributions this year. They can still open an RESP with a promoter that supports CLB and ask the promoter to request the bond. The lack of a personal contribution does not block CLB.

Example: 19-year-old discovers missed CLB

A 19-year-old who meets the provincial age requirement to open an RESP asks a promoter about opening an account for themselves and requesting unpaid CLB before turning 21.

Example: two children in one family plan

Two siblings are named in a family RESP. One child qualifies for CLB and one does not. The CLB belongs to the eligible child only; it should not be treated as a shared family grant.

Example: CLB appears missing

A subscriber opened an RESP and assumed all benefits were requested. Several weeks later, the account statement shows CESG but no CLB. The subscriber asks the promoter whether the CLB application was submitted and whether caregiver information or eligibility records need correction.

Numbers to remember

• $500: the initial CLB payment for the first year the child is eligible.
• $100: the CLB amount for each additional eligible year, up to age 15.
• $2,000: the lifetime CLB maximum per eligible child.
• $25: the one-time opening-related amount paid into the RESP when the initial $500 CLB is deposited.
• Age 21: the beneficiary must be under this age when the CLB is requested.

Questions to ask the RESP promoter

• Do you support the Canada Learning Bond for this plan type?
• Will you apply for CLB at the same time as CESG and any provincial benefits?
• Can this account be opened with no initial contribution if the main goal is to request CLB?
• What documents or signatures do you need from the subscriber and primary caregiver?
• How will the account statement show CLB separately from contributions, CESG, and investment growth?
• If the beneficiary is 18 to 20, can they be their own subscriber and request unpaid CLB through this promoter?

Official sources