Advertisement
Sponsored By
Embark
Anyone with a registered education savings plan is eligible for the Canada Education Savings Grant. Eligible families may also receive extra support through the Canada Learning Bond.
If you’re a parent who has been watching tuition costs rise over the last few years, you might be feeling anxious about paying for your child’s post-secondary education. But despite the higher costs, about half of eligible Canadians are not participating in an RESP to prepare for their child’s future.
The Canada Education Savings Grant (CESG) contributes a 20% match of a family’s annual savings contribution to their children’s RESP, and the Canada Learning Bond (CLB) provides up to $2,000 to assist eligible families beginning to save for their children’s post-secondary education. The government deposits both types of grants into a registered education savings plan (RESP), where the savings grow tax-free.
We’ll explain how these grants work, how much the government contributes, and who qualifies for RESP grants in Canada.
An RESP grant is a government contribution to an eligible education savings plan to encourage you to contribute more. You can open a free RESP account to save for your post-secondary education, your child’s education, or someone else’s.
RESPs are partly funded by the government, but they’re offered by financial institutions and RESP providers, including banks, credit unions, life insurance companies, and education savings companies like Embark. Regardless of where you open your RESP, the government grant rules are the same, though providers may differ in the investment options, fees, and features they offer.
Here’s a quick look at how your grant options compare:
| Canada Education Savings Grant (CESG) | Canada Learning Bond (CLB) | |
|---|---|---|
| Eligibility | Canadian resident children up to the end of the calendar year they turn 17 | Children born on or after Jan 1, 2004, from low-income families |
| Requires personal contribution to RESP | Yes; grant matches 20% of your annual contributions | No |
| Amount of the grant | 20% of the first $2,500 contributed per year | $500 for the first year, then $100 per eligible year until age 15. |
| Maximum amount granted | $7,200 lifetime limit per child | $2,000 per child |
| Additional information or features | Unused grant room rolls over each year | Retroactive payments can be claimed until the day before the beneficiary turns 21 |
The amount that you’ll receive from the government depends on which grant you’re getting. While everyone with an RESP is eligible for the Canada Education Savings Grant, not everyone qualifies for the Canada Learning Bond.
Here’s how much you can expect to receive from these grants if you qualify:
CESG government contributions
| Adjusted family net income for 2025 | Less than $57,375 | Between $57,375 and $114,750 | More than $114,750 |
|---|---|---|---|
| Basic CESG on the first $2,500 of annual RESP contribution | 20% = $500 | 20% = $500 | 20% = $500 |
| Additional amount of the CESG on the first $500 of annual RESP contribution | 20% = $100 | 10% = $50 | Not eligible |
| Maximum yearly CESG depending on income and contributions | $600 | $550 | $500 |
| Lifetime maximum per child | $7,200 | $7,200 | $7,200 |
CLB government contributions
| CLB contribution amounts | |
|---|---|
| First year of eligibility | $500 |
| Each following year of eligibility until age 15 | $100 |
| Lifetime maximum per child | $2,000 |
Most Canadian-resident children under 18 who are named as beneficiaries of an RESP can qualify for the basic CESG, but some people may qualify for additional funds based on income level. Although the lifetime maximum contribution from the government remains $7,200, there are slight adjustments to the annual grant amount, which are based on income.
A child or youth is eligible for the CLB if they meet these requirements:
For the July 1, 2025 to June 30, 2026 benefit year, families with one to three children may qualify with adjusted income of $57,375 or less; higher thresholds apply for larger families.
While government grants are administered through your RESP, not every provider offers the same experience. Some, including the non-profit education savings company Embark, identify and apply on your behalf for eligible government grants when you open an RESP. This helps ensure that you don’t miss out on available funding. They also provide educational resources and support to help you understand RESP rules, contribution strategies, withdrawal best practices, and other supportive tools.
Using a provider’s automatic grant application feature can reduce paperwork and help maximize every government incentive you’re entitled to, giving you greater confidence that you’re taking advantage of all available funding.
If your child is receiving the Canada Education Savings Grant, their RESP account can receive a lifetime limit of $7,200 from the government. That’s generally up to $500 per child per year, or up to $1,000 in a year if unused grant room is available, to a lifetime maximum of $7,200.
If you contribute more than $2,500 per year to your child’s RESP, you’ll need to withdraw the excess contributions or face a 1% tax penalty on the amount each month that the excess funds stay in the account.
You or your child can withdraw the contributions you made to the RESP without paying taxes on them, but you’ll be taxed on any investment growth (or you can deposit them in your RRSP if you have room for the year). You must also repay the government grant funds if your child decides not to pursue higher education.
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Which ETFs should you invest in? Which ones best suit your risk tolerance? What about personal ethics? Check out...
Copper production lifted First Quantum, while Intact faced higher catastrophe claims. Catch up on the latest quarterly results from...
Dividend ETFs do not guarantee market-beating returns. They boost your portfolio thanks to factor exposure and behavioural benefits.
Find the best GIC rates in Canada. Plus, everything you need to know about how they work.
Rogers' latest deal weighed on earnings, while Teck benefited from stronger copper markets. Here's the full roundup
Whether a U.S.-listed ETF is worth buying depends on foreign exchange costs, taxes, MERs, and your investment account.
Artificial intelligence is transforming markets, but retirees should approach the AI investing theme with caution and a well-diversified portfolio.
Cogeco reports a steep quarterly loss tied to its U.S. business, while Electrovaya jumps on an Amazon agreement and...
Why and how ETF closures happen, which warning signs to watch for, and what it means if a fund...
