Funding university with the RESP you started years ago

If you arrived in Canada years ago and began saving for your child's education through a Registered Education Savings Plan (RESP), you are now entering the critical stage where those savings will actually pay for tuition, residence, and living costs. This guide explains how the Canada Education Savings Grant and Canada Learning Bond work, how to maximize the grants you may have missed, and what steps matter most in your child's Grade 12 year.

How the CESG 20% Grant Works

The Canada Education Savings Grant (CESG) is a federal program that matches your contributions to your child's RESP. For every dollar you contribute, the government adds a percentage. The basic CESG is 20% on the first $2,500 you contribute each year per child. This comes to $500 per year in government money. Over a lifetime, the maximum CESG your child can receive is $7,200.

The CESG is available to any Canadian child with a valid Social Insurance Number (SIN), regardless of household income. You become eligible to receive it the year your child is born, and the grant continues until the end of the calendar year in which your child turns 17. This is a hard deadline: once your child turns 18, no new CESG contributions will be made, even if you have unused grant room.

Low- and Middle-Income Families: Extra Grants

If your family's adjusted net income is below a certain threshold, your child qualifies for the Additional CESG. For 2025, families with adjusted net income of $57,375 or less (for up to three children) receive an extra 20% grant on the first $500 contributed annually—meaning $100 more per year on top of the basic $500. Families with income between $57,375 and $114,750 receive an extra 10% on the first $500, or $50 per year. This additional grant also carries a lifetime cap of $7,200 combined with the basic grant.

Catching Up on Unused Grant Room

One of the most valuable features of the CESG is that unused grant room carries forward. Every child under age 18 who is a Canadian resident accumulates $500 per year in potential CESG room (or $400 for children born between 1998 and 2006). If you could not afford to contribute every year, or if you only arrived in Canada recently, you can catch up.

For example, if your child was born in 2008 and you only started an RESP in 2024, that child has accumulated grant room from 2008 onwards. When you contribute, say, $5,000 in a single year to your child's RESP, you can receive up to $1,000 in CESG that year instead of the usual $500 maximum—using the accumulated room from previous years. This catch-up can happen one extra year at a time, but you must continue contributing and applying until age 17 to use all available room.

The Canada Learning Bond for Low-Income Families

The Canada Learning Bond (CLB) is a separate federal grant available to children from families with low income. Unlike the CESG, the CLB does not require any contribution from you. The government deposits money directly into an RESP opened in your child's name.

Children born in 2004 or later qualify if they are Canadian residents with a valid SIN and their family's adjusted net income is at or below the threshold (approximately $57,375 for families with one to three children as of 2025, though this amount adjusts yearly in July). The CLB provides $500 in the first year of eligibility, then $100 for each additional year until the child turns 15, for a maximum lifetime amount of $2,000 per child.

Eligibility is based on whether the primary caregiver receives or is eligible for the Canada Child Benefit (CCB). If you are eligible, the government will automatically notify you. You do not have to make any RESP contribution to receive the CLB, making it an especially valuable program for families facing financial hardship.

Opening an RESP as a Newcomer: SIN Requirements

To open an RESP in Canada, both the person opening the account (the subscriber) and the child (the beneficiary) need a valid Social Insurance Number (SIN). If you are a permanent resident or recent immigrant, you can obtain an SIN through Service Canada by providing your immigration document and a birth certificate. If you arrived without a SIN, apply as soon as possible: the government's SIN processing can take several weeks, and the sooner your child has one, the sooner you can access grant room.

Any adult in your family—parent, grandparent, or even a family friend—can open an RESP for a child as long as they have a SIN. The child does not have to be a Canadian citizen; they must be a Canadian resident with a SIN at the time the RESP is opened. There is no minimum contribution required, and most banks and credit unions offer RESP accounts with no opening fee.

Why Grade 12 Matters: Scholarships and Early Applications

Your child's Grade 12 year is crucial for post-secondary funding. Many entrance scholarships at Canadian universities are awarded based on Grade 11 and Grade 12 achievement, and application deadlines typically fall in winter of Grade 12. If your child demonstrates strong academic performance and leadership, they may qualify for entrance scholarships worth hundreds or thousands of dollars—money that supplements what your RESP has built.

Provincial Scholarship Programs

Most provinces offer achievement-based scholarships to top high school graduates. In British Columbia, the BC Achievement Scholarship recognizes the top 8,000 graduates in the province and awards $1,250 vouchers based on Grades 10, 11, and 12 course performance. In Ontario, universities offer entrance scholarships to Grade 12 students who demonstrate academic excellence and leadership. Application deadlines for many university scholarships are in February of your child's graduating year.

Beyond provincial programs, individual universities and colleges offer their own entrance scholarships. Some are automatic (based solely on grades), while others require an application that highlights academic achievement, community involvement, and leadership. Research your child's target schools early in Grade 12 and mark deadline dates on your calendar.

Student Financial Assistance and Loans

If your RESP savings and scholarships do not cover the full cost of tuition and living expenses, your child may be eligible for government student loans and bursaries. In Ontario, the Ontario Student Assistance Program (OSAP) provides loans and needs-based bursaries to eligible residents. In British Columbia and other provinces, similar programs exist. These programs consider family income and the cost of the program your child is pursuing.

Unlike grants, student loans must be repaid. However, bursaries (grants based on financial need) do not require repayment. To apply, your child typically needs to be a Canadian citizen or permanent resident and an Ontario resident (or resident of the province where the school is located). Applications are usually completed after your child has been accepted to a program.

How to Use RESP Funds When Your Child Enters Post-Secondary

When your child is accepted to a post-secondary program—whether university, college, trade school, or apprenticeship—you can begin withdrawing money from the RESP. These withdrawals are called Education Assistance Payments (EAPs). The key advantage is that EAPs are taxed in your child's hands, not yours. Since your child has little or no income while studying, they will typically pay little or no tax on these withdrawals.

The RESP funds can be used for tuition, books, residence fees, and living expenses. Your RESP provider will have forms to complete to request an EAP. Once your child completes their studies, any remaining funds in the RESP can be transferred to an Registered Retirement Savings Plan (RRSP) if your child has room, or withdrawn (with tax consequences on the grant and investment growth portions).

Common Questions for Newcomer Families

Can I open an RESP if I just arrived in Canada?

Yes. Both you and your child need a SIN, but there is no residency requirement for the person opening the account (the subscriber). Your child must be a Canadian resident at the time the RESP is opened. Apply for SINs through Service Canada as soon as you have your immigration documents.

What if my child is already a teenager?

It is never too late to open an RESP and begin receiving grants. If your child is 16 or 17, you have limited time to accumulate CESG room, but you can still catch up. Contribute what you can before your child turns 18, because grant eligibility ends on December 31 of the year they turn 17. After age 17, no new grants will be paid, but your RESP account can continue to hold and grow funds until your child uses them for post-secondary studies.

Do I lose CESG room if I do not use it before age 18?

You do not lose the room itself, but you cannot receive any new CESG grants after your child turns 18. If you have accumulated unused grant room and did not contribute enough to claim it before the deadline, that opportunity is gone. This is why catching up early (for example, in your child's Grade 11 year) is important.

Key Takeaways for Your Family

• The CESG provides 20% matching on the first $2,500 you contribute each year, up to $500 per year and $7,200 lifetime. Low-income families may receive an additional 10% or 20% on the first $500 contributed.
• Unused CESG room carries forward, allowing you to catch up on past years if you contribute more than $2,500 in a single year (up to $1,000 in grant per year with catch-up).
• The Canada Learning Bond provides $500 to $2,000 to low-income families with no contribution required.
• Both grants end on December 31 of the year your child turns 17. After that, no new grants are paid, even if your RESP account continues.
• Your child needs a valid SIN to be named a beneficiary. Apply for SINs through Service Canada as soon as you have immigration documents.
• Grade 12 academic performance determines eligibility for many entrance scholarships. Research university deadlines (often February) early in Grade 12.
• Provincial scholarships and student loans or bursaries can bridge the gap between your RESP savings and the full cost of post-secondary education.
• RESP withdrawals (Education Assistance Payments) are taxed in your child's hands, typically resulting in little or no tax since they have minimal income while studying.

For the most current information on CESG and CLB eligibility, visit the Canada Revenue Agency website or the Government of Canada's education savings pages. Your RESP provider can also calculate exactly how much grant room your child has accumulated and help you make the most of your remaining time before your child turns 18.