How Child Tax Loans Can Help Ease Financial Stress

Raising a child is way more expensive than most parents thought — and more than 50% of parents say they went into debt to pay for their children.

From bottles and onesies to lunch money and extracurricular activities, the bank of mom and dad is quick to empty.

But why incur hefty debts when you can take a child tax payday loan?

If you've never heard of a child tax loan, we'll tell you all about it in the sections below. 

We'll also tell you about the loan application and everything else in between.

Read on.

What is a Child Tax Payday Loan?

A child tax payday loan is a short-term loan given to eligible families to use while waiting for their Canada Child Benefit (CCB) or other child tax credit payments.

It is a way for families to access cash early, with the loan amount based on the CCB payments expected from the government.

Here's what you need to know:

• Child tax payday loans allow families to borrow against their CCB payments if they need cash before the next monthly deposit.
• Typically, the loan is due on the borrower’s next payday or when their next CCB deposit arrives. However, your online lender might allow partial repayments
• Lenders will ask for proof of CCB eligibility, like recent benefit statements, to confirm there will be future deposits to repay the loan.

What is the Canada Child Benefit or the “Baby Bonus”? 

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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 criteria:

• 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 center. 

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.  Here’s a breakdown of the provincial child tax benefits programs and the maximum annual amounts. 

Alberta Child and Family Benefit (ACFB)

• Quarterly payments
• Maximum annual benefit: $5,656 (base + working component based on income and number of children)
• Reduction begins if income > $27,024

British Columbia Family Benefit

• Monthly payments included with CCB
• Maximum annual benefit: $2,188 for the first child, $1,375 for the second, $1,125 for each additional child
• Income thresholds start at $35,902 with reductions after

New Brunswick Child Tax Benefit

• Monthly payments included with CCB
• Basic annual benefit: $250 per child
• Additional Working Income Supplement (for earned income over $3,750) up to $250 per family
• Annual back-to-school supplement: $100 per child for low-income families

Newfoundland and Labrador Child Benefit

• Monthly payments included with CCB
• Annual benefit per child: $1,825.92 (first child), $1,936 (second), $2,079 (third), and $2,233.92 for each additional child
• Additional Early Childhood Nutrition Supplement: up to $1,800 per child under 5

Northwest Territories Child Benefit

• Monthly payments
• Children under 6: Annual benefit ranges from $814.92 for one child to $2,445 for four children
• Children aged 6-17: Annual benefit ranges from $651.96 for one child to $1,956 for four children
• Income eligibility threshold starts at $30,000

Nova Scotia Child Benefit

• Monthly payments included with CCB
• Annual benefit: $1,525 per child
• Reduced to $762.50 per additional child if income is between $26,000 and $34,000

Nunavut Child Benefit

• Monthly payments
• Basic annual benefit: $348 per child
• Additional Territorial Workers’ Supplement: $289.92 for one child, or $369 for two or more children

Ontario Child Benefit (OCB)

• Monthly payments
• Maximum annual benefit: $1,680 per child under 18
• Income eligibility threshold starts at $25,646

Yukon Child Benefit

• Monthly payments
• Annual benefit per child: $918
• Income eligibility threshold starts at $35,000

Quebec Family Allowance (administered by Retraite Québec, not CRA)

• Monthly payments with amounts based on income and family size
• Adjustments for income and special supplements for certain families

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 can apply for personal loans 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 have to pay back in installments over a predetermined period. You will have to pay interest and associated fees on traditional loans.

When applying for a personal loan with a bank, most lenders will perform a hard credit check and 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 getting a payday loan is much easier and faster than traditional loans, 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 pay on time, you will likely 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. 

Here are the top reasons to choose Bree for your child's tax payday loan. 

You Can Get Quick Cash for Your Child’s  Immediate Needs

With Bree, you can access up to $350 cash advance. The best part? You don’t have to worry about any interest or late fees, and there's no credit check required. 

Bree’s child tax payday loan offers an affordable way to bridge the gap between expenses and your child tax benefit income, letting you manage bills without the high costs often tied to traditional loans.

Flexible Repayment Options

Unlike most personal loans or online payday loans, Bree’s baby bonus payday loan is available in a unique pay-when-you-can system. This way, you manage cash advances from your child's tax credits without pressure. 

Also, there’s no fixed due date, so you repay once your direct deposit or next child tax benefit income arrives, unlike instalment loans.

Straightforward Application Process 

With Bree’s quick online loan application, you can secure funds in minutes. You don't have to deal with the boring paperwork of traditional loans and credit checks. 

Plus, Bree’s simple system approves based on minimal criteria like bank statements, employment income, and child tax benefit eligibility.

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, 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, try Bree today!

References

1. Government of Canada. Canada child benefit. Accessed July 08, 2024. 

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