If you’re a parent, you know raising a child is not cheap. From bottles and onesies to lunch money and extracurricular activities, the bank of mom and dad is quick to empty. If you’re struggling to make ends meet, you might consider using a child tax loan.
A child tax loan is a loan you can apply for using the money you receive from the Canada Child Benefit (CCB). This article covers everything you need to know about the CCB and how you can use it to apply for a child tax credit loan.
What is the Canada Child Benefit or the “Baby Bonus”?
The Canada Child Benefit (CCB), also referred to as the “baby bonus” is a monthly benefit payment offered by the Canadian government and administered by the Canada Revenue Agency (CRA) to eligible families. The purpose is to provide financial assistance to Canadian families and help with the cost of raising children.
How to Qualify for a Child Tax Loan?
To qualify for the CCB, you must meet all of the following eligibility criteria1:
- You live with a child under 18 years old
- You’re the primary caregiver
- You’re a Canadian resident
- You and your spouse or common-law partner must be one of the following:
- Canadian citizen
- Permanent resident
- Protected person
- Temporary resident (lived in Canada for 18 months or has a valid permit)
- Indian status
How do I get the Canada Child Benefit?
You can apply for the CCB when:
- Your child is born
- A child starts living with you
- You start, end, or change a shared custody arrangement
- You gain custody of a child
- You, your spouse, or common-law partner meet the eligibility criteria listed above
To get CCB payments, there are a few different ways to apply:
- In Hospital: When your child is born you can apply through CCB by filling out a paper form in the hospital. If you live in Alberta, British Columbia, Ontario, or Quebec, you can also apply online. You will need your SIN number to apply.
- My Account: If you didn’t apply when you registered the birth of your child, you can apply online through CRA My Account.
- By Mail: You also have the option of filling out the Canada Child Benefits Application form (Form RC66) and mailing it to your tax centre.
Once you start receiving payments from CCB, you can use them to help get approved for a child tax loan from Bree. Your CCB payment can help increase your eligibility by adding to your monthly income. If you need access to money in the short term to cover upcoming expenses, you can apply for online child tax loans from Bree and then use your CCB payment to repay your loan.
Child Benefits by Province
Most provinces provide additional child benefit programs outside of the federal Canada Child Benefit. These payments are typically combined with your CCB into a single monthly payment. The table below provides a breakdown of the provincial child tax benefits programs and the maximum annual amounts.
Ontario
Benefit: Ontario child benefit (OCB)
Maximum Annual Payments: $1606.92 per child
Alberta
Benefit: Alberta child and family benefit (ACFB)
Maximum Annual Payments:
Base component (max):
- $1,410 - 1 child
- $2,115 - 2 children
- $2,820 - 3 children
- $3,525 - 4 children
Working component (max):
- $722 - 1 child
- $1,379 - 2 children
- $1,772 - 3 children
- $1,902 - 4 children
British Columbia
Benefit: BC family benefit
Maximum Annual Payments:
- $1,750 - first child
- $1,100 - second child
- $900 for each additional child
Nova Scotia
Benefit: Nova Scotia child benefit (NSCB)
Maximum Annual Payments:
- $1,525 - 1 child
- $2,050 - 2 children
- $4,575 - 3 children
- $1,525 for each additional child
New Brunswick
Benefits: New Brunswick child tax benefit (NBCTB), New Brunswick school supplement (NBSS), New Brunswick working income supplement (NBWIS)
Maximum Annual Payments:
$250 for each dependent child or
2.5% of family net income over $20,000 for one child family or
5% of family net income over $20,000 for families with more than one child
NBSS: $100 per child
NBWIS: $250 annually per family
Newfoundland and Labrador
Benefits: The Newfoundland and Labrador child benefit (NLCB), Prenatal infant nutrition supplement
Maximum Annual Payments:
- $447 - 1 child
- $921 - 2 children
- $1,429.93 - 3 children
- $1,976.88 - 4 children
- $150 per month for children under one year
Northwest Territories
Benefit: Northwest Territories child benefit (NWTCB)
Maximum Annual Payments:
Children under 6:
- $815 - 1 child
- $1,467 - 2 children
- $1,997 - 3 children
- $2,445 - 4 children
- $2,445 plus an additional $365 each for 5 or more children
Children 6 to 17:
- $652 - 1 child
- $1,174 - 2 children
- $1,597 - 3 children
- $1,956 - 4 children
- $1,956 plus an additional $293 each for 5 or more children
Nunavut
Benefit: Nunavut child benefit (NUCB)
Maximum Annual Payments:
- $288.96 - 1 child
- $367.92 for 2 or more children
Yukon
Benefit: Yukon child benefit
Maximum Annual Payments: $867 per child
How can the baby bonus help me get a cash loan and what are my lending options?
If you need access to cash to help cover your daily bills or to pay for an unexpected expense, many lenders will allow you to use your CCB payments as approved income for child tax benefit loans.
Traditional lenders
While you have the option of applying for a personal loan with a traditional bank or credit union, you will need to ask if they’ll consider your Canada Child Tax Benefit payments as part of your total income.
If approved, the bank will provide you with a lump sum which you then have to pay back in instalments over a predetermined amount of time. You will have to pay interest and any associated fees.
When applying for a personal loan with a bank, most lenders will perform a hard credit check and also review your debt-to-income ratio, and income. You typically need a strong credit score and a steady income to qualify. If the bank includes your CCB payment, this might help to boost your income but won’t guarantee you qualify for a loan.
Payday loans
Many payday lenders offer child tax credit loans. While it’s much easier and faster to get a loan with a payday lender than a bank, you’re also taking on a lot more risk.
The typical payday loan comes with extremely high interest rates and very short loan repayment terms. If you fail to make your payment on time, you’re likely to face high fees and interest charges. With a payday loan, it’s easy to find yourself in a cycle of debt. Before taking on child tax payday loans, consider your other options.
Bree
You can also apply for a child tax loan with Bree. The best part – you don’t have to worry about any interest or late fees, and there’s no credit check required. With Bree, you can get up to a $250 child tax loan.
The approval process is also super simple. All you need is a checking account, regular income, and proof that you’ll have enough money in your account after your next paycheck to repay your loan.
With a 0% interest rate and no credit score requirement, getting a cash advance loan has never been easier and lower risk.
Ease Financial Stress With a Child Tax Loan
Times are tight for many Canadians. If you need a little bit of financial help to ensure you can put food on the table and pay your bills, you can leverage your CCB payment to help you get a child tax benefit loan. While there are several cash advance loan options to choose from, make sure you weigh the pros and cons of each and consider how much you’ll have to pay in fees and interest. If you’re ready to apply for a child tax loan, reach out to Bree today!
References
- Government of Canada. Canada child benefit. Accessed December 20, 2023.
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