RESPs and government grants: Enhance your child’s education savings
With an RESP, your contributions are increased by federal and provincial grants. This support can reach up to $12,8001 per beneficiary.
RESP contributions are enhanced by the Government of Canada’s CESG, the Government of Quebec’s QESI and the CLB for eligible Canadian families.
Depending on your family income, this assistance can increase your contributions by 30% to 60%2. Together, they can provide up to $12,8001 in grants per child.
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What grants are available for your RESP in Quebec?
RESPs contributions can be enhanced by the Government of Canada’s Canada Education Savings Grant (CESG), the Government of Quebec’s Quebec Education Savings Incentive (QESI) and the Canada Learning Bond (CLB) for eligible families. Depending on your family income, these government contributions can increase your savings by 30% to 60%.2 In total, your child could receive up to $12,8001 in grants to support their education.
Here are the three key grants:
- CESG: Federal financial assistance available to all Canadian families, regardless of income.
- QESI: A Quebec government tax initiative, complementing the CESG, to encourage Quebec families to save for post-secondary education.
- CLB: Federal contribution paid to eligible Canadian families, with no obligation to contribute.
Canada Education Savings Grant
The CESG is offered by the Government of Canada and can provide up to $7,200 lifetime per child. Each year, an amount equivalent to 20% of the first $2,500 contributed is paid into the RESP. The maximum grant is $500 per year.
Low- and middle-income families can also receive an additional 10% to 20% on the first $500 contributed. It’s a great way to supercharge your savings.
To benefit, your child must:
- Have a valid SIN;
- Live in Canada;
- Be a beneficiary of an RESP.
The CESG is accessible at the end of the calendar year in which the child turns 17. However, you will have to meet certain conditions for your beneficiary to remain eligible until that age.
Quebec Education Savings Incentive
The QESI is a provincial grant exclusive to Quebec families. This tax measure tops up your contributions by 10% on the first $2,500 contributed, up to a maximum of $250 per year. The additional QESI adds another 5% to 10% on the first $500 for low- and middle-income families.
The lifetime total per beneficiary can reach $3,600. It’s a concrete way to help build your child’s education savings from an early age. To be eligible, they must:
- Have an SIN;
- Reside in Quebec on December 31 of the contribution year;
- Be a beneficiary of an RESP.
Canada Learning Bond
The CLB is a Canadian grant paid with no obligation to contribute for financially eligible families. This assistance allows you to start building your child’s education savings, even if you’re not able to contribute right away. It can be as much as $2,000 per child and can be recovered retroactively.
An initial amount of $500 is paid for the first year of eligibility. After that, $100 is deposited each year the family is eligible, until the child turns 15.
The CLB depends in particular on adjusted family income. To qualify, your child must:
- Be born on or after January 1, 2004;
- Have an SIN;
- Live in Canada;
- Be a beneficiary of an RESP.
- Come from a financially eligible family.
Retroactive CLB for young adults
If the beneficiary is a young adult aged 18, 19 or 20, they can apply for the CLB retroactively. Up to $2,000 can also be injected into their RESP, even if they have already begun their studies.
Mini-guide to government grants
Download our tool for a quick overview of the amounts and conditions of each grant available through the Registered Education Savings Plan. A simple and practical guide to show you what your child may qualify for at a glance!
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What is the maximum amount of grants available in an RESP?
The maximum available in RESP grants is up to $12,800 per child in Quebec. This total includes up to $7,200 in CESG, $3,600 in QESI and $2,000 in CLB for eligible families.
Each year, your contributions can generate up to $750 in basic grants, or $500 in CESG and $250 in QESI. These amounts are calculated from an annual maximum of $2,500 in contributions eligible for grants, up to a lifetime maximum of $36,000. Depending on your family income, you could receive up to an additional $100 in CESG and an additional $50 in QESI per year.
The CLB then adds $100 for eligible families, with the exception of the first year of eligibility, when the grant is $500.
The three grants at a glance
| Grant | How it works | Maximum lifetime | Annual maximum | Catch-up |
|---|---|---|---|---|
| CESG Federal |
• Minimum bonus of 20% of the first $2,500 contributed per year, up to a limit of $36,000. • 10% to 20% more for low- and middle-income families. |
$7,200 per child | • $500 base per year • Up to $100 more for eligible families |
Yes—one year’s entitlement at a time can be recovered, up to $5,000 in eligible contributions. |
| QESI Provincial - Quebec |
• Minimum bonus of 10% of the first $2,500 contributed per year, up to a limit of $36,000. • 5% to 10% more for low- and middle-income earners. |
$3,600 per child | • $250 base per year • Up to $50 more for eligible families |
Yes—one year’s entitlement at a time can be recovered, up to $5,000 in eligible contributions. |
| BEC Federal |
• Fixed amount deposited directly into the RESP of a beneficiary from a financially eligible family. • No contribution required. |
$2,000 per child | • $500 for the first year of eligibility • $100 per subsequent year |
Yes—retroactive payments are possible for eligibility years. Possibility of opening an RESP—for yourself or someone else—at age 18, 19 or 20 to take advantage of the CLB. |
How can you catch up on grants in an RESP?
Catch-up allows you to recover unused grant rights from previous years. This mechanism makes it possible to temporarily increase the amount of contributions while respecting the rules in force.
In concrete terms, you can contribute $2,500 for the current year and add the equivalent of one year at a time, i.e., $2,500 in accumulated rights. Up to $5,000 in contributions in a single year can generate grants. These catch-up amounts are eligible for basic grants only. A great way to get back on track if you’ve contributed a little less in the past, or if you opened your child’s RESP a few years after they were born.
Estimate the value of your RESP
Find out how much your RESP could be worth by your child’s 18th birthday, based on their current age and your expected contributions.
How do you get your government education savings contributions?
You don’t have to go through a complex procedure to take advantage of government grants. As soon as you open your RESP, Kaleido takes care of submitting the applications—everything is designed to make things easier for you!
When you open your account, the required forms will be presented to you automatically—if you open the account online—or by your education savings advisor. All you need is your social insurance number, the beneficiary’s social insurance number and the number of the person responsible for the beneficiary, if this is someone else. If applicable, you will simply need to have them complete Annex B of the application form.
Rest assured, each step will be clearly explained to keep the process simple.
FAQ
There are three types of grants that can boost an RESP. The federal government’s Canada Education Savings Grant (CESG), the Quebec Education Savings Incentive (QESI) for Quebec residents and the Canada Learning Bond (CLB) for eligible families. Combined, these grants can add up to as much as $12,8001 per child in Quebec.
In Quebec, the Quebec Education Savings Incentive (QESI) can provide up to $3,600 lifetime per child. It corresponds to 10% of RESP contributions, up to $250 per year, with a possible supplement for eligible families.
Yes. Unused grant rights can be reclaimed through the catch-up mechanism. In addition to the annual contribution of $2,500, another $2,500 in accumulated rights can be added, generating grants on a maximum annual contribution of $5,000.
Grants are paid directly into the RESP after contributions are made. Financial institutions or RESP providers forward applications to the governments, which then deposit the amounts in the plan.
Yes. The lifetime RESP contribution limit is $50,000 per beneficiary. However, there is no annual contribution limit, although grants are calculated on a maximum of $2,500 in contributions per year, for a lifetime total of $36,000.
Anyone aged 18 or over—a parent, grandparent, family member or even a friend—can open an RESP for a child. The person who opens the plan becomes the subscriber and can make contributions.
As soon as possible. Opening an RESP from birth allows you to benefit longer from government grants and tax-sheltered growth.
Check out our article What are the advantages of starting to save early in an RESP? to find out more.
First of all, there’s no rush to close an RESP. It can remain open for up to 35 years after opening, giving your beneficiary time to change their career plans. If you are confident that they won’t change their mind, you can also transfer the RESP to another beneficiary.3
If none of these options apply, you can close the account. Contributions can then be recovered without being taxed. The government grants will have to be returned. Accumulated income can be withdrawn under certain conditions or transferred to your RRSP or your spouse’s RRSP if you have enough contribution room.
More details in our article My child is leaving school: what should I do with their RESP?
1. The lifetime maximum per beneficiary is $7,200 for the Canada Education Savings Grant (CESG) and $3,600 for the Quebec Education Savings Incentive (QESI). The Canada Learning Bond (CLB) can reach $2,000 per beneficiary for a child born after December 31, 2003, whose family is financially eligible. Certain conditions apply. See our prospectus at Kaleido.ca.
2. Canada Education Savings Grant (CESG) from 20% to 40% and Quebec Education Savings Incentive (QESI) from 10% to 20%, according to adjusted family net income. Certain conditions apply. See our prospectus on Kaleido.ca.
3. Certain conditions apply. See our prospectus at Kaleido.ca.