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2016, along with the election of our new Prime Minister, Justin Trudeau, marked the start of several changes to our country’s policies on income taxes and other government benefit programs. This included some notable adjustments to the C.C.T.B. (Canada Child Tax Benefit), which as of July 20th, 2016 is officially renamed the “Canada Child Benefit” (CCB).
We receive questions every day about a variety of different types of loans and the application processes that come with them. One question that we frequently receive is: “Will I qualify for a loan if I’m currently receiving the Canada Child Benefit?” While the answer to this question varies from lender to lender, here’s how you can use your Canada Child Benefit income to qualify for a loan.
Though any loan you take out is typically dependent on your income, employment, and credit history, you may be able to use your CCB as leverage to get a loan. Since your CCB is considered part of your income, you can use it as a means to qualify for a loan. However, to get approved for a loan while on CCB, you’ll need to find a lender that accepts child tax credit as a form of income.
Loan Amount | Interest Rate | Term | Province Availability | ||
![]() | $500 - $35,000 | 2.99% to 46.96% | 4 - 60 months | Across Canada | Learn More |
![]() | Up to $15,000 | 29.99% - 46.96% | 9 - 60 months | BC, AB, SK, MB, ON, NB, NS, PEI, NL | Learn More |
![]() | Up to $20,000 | 19.99% - 46.8% | 12 - 60 months | BC, AB, ON, NB, NS, PEI, NL | Learn More |
![]() | Up to $15,000 | Started at 19.99% | Open-end | BC, AB, SK, ON, NS, PEI, NL | Learn More |
![]() | Up to $1,500 | Varies by province* | Max 62 days | BC, AB, MB, ON, NB, NS, PEI | Learn More |
![]() | $200 - $1,500 | Varies by province* | Next payday | BC, AB, SK, NS, YT, NT, NU | Learn More |
![]() | $50 - $1,500 | Varies by province* | 14 days | BC, AB, SK, MB, ON, NS | Learn More |
![]() | Up to $1,500 | Varies by province* | Up to 62 days | BC, AB, ON | Learn More |
![]() | $120 - $1,500 | Varies by province* | Max 62 days | BC, AB, SK, MB, ON, NS | Learn More |
![]() | Up to $1,500 | Varies by province* | Max 62 days | BC, AB, SK, MB, ON, NB, NS, PEI | Learn More |
When it comes to the majority of lenders, whether they’re banks or other organizations, the qualification standards will vary from loan to loan. The standards for the clients they take on, however, will remain relatively the same. In other words, what any legitimate lender will want to know, first and foremost, is that you’re financially stable enough to pay back whatever amount of money they’re letting you borrow, along with any interest charges that apply. Depending on your chosen lender, their application process might include them checking:
Depending on the lender you apply with, requirements may vary. For example, while one lender may require a good credit score, another may not. Similarly, while one lender may require you to be employed, another may simply require a stable source of income.
Most payday lenders require proof of income, a valid bank account, and proof of identity to qualify. Most lenders also do not require a credit check, which makes it a good option for those with bad credit.
While these categories are likely going to be the most important points to check off, other qualification areas might be subject to inspection, so it’s best to have all your financial and personal information updated and organized prior to applying.
Personal loans (a.k.a installment loans) have lower interest rates and longer repayment periods than a payday loan, so it tends to be cheaper and more manageable to pay off. When you get a personal loan, you’ll receive a lump sum of cash that you’ll have to repay with interest in equal installments over a period of time. Here are some common factors you should consider before taking out a child tax loan.
Taking out a payday loan that accepts child tax (a.ka. baby bonus payday loan) is becoming increasingly popular amongst cash-strapped parents. CCB payday loans are easy to get but should only be taken out in emergencies or in small amounts as interest is accrued immediately. Here are some factors to consider when calculating the cost of your child tax payday loan.
Province | Max cost per $100 borrowed | Max Penalty for Returned Cheque | Cooling Off Period | Loan Rollover or Extension |
Ontario | $15 | n/a | 2 business days | Not allowed |
British Columbia | $15 | $20 | 2 business days | Not allowed |
Alberta | $15 | $25 | 2 business days | Not allowed |
New Brunswick | $15 | $20 | 48 hours (not including Sundays and holidays) | Not allowed |
Manitoba | $17 | $20 | 48 hours (not including Sundays and holidays) | Allowed |
Saskatchewan | $17 | $25 | Next business day | Not allowed |
Nova Scotia | $19 | $40 (default penalty) | Next business day (or 2 days for online payday lenders) | Not allowed |
Newfoundland and Labrador | $21 | $20 | 2 business days | Allowed |
Prince Edward Island | $25 | n/a | 2 business days | Allowed |
Quebec | 35% AIR | n/a | 10 days | Not allowed |
The Canada Child Benefit is a government program that provides families and single parents with financial assistance. It is a tax-free payment that families or single parents can apply for when they have a child or children who are currently under the age of 18.
The amount you can get through the child tax credit is dependent on certain criteria, including:
The maximum amount you can get under the CCB program is:
Parents who have a child with a physical or mental disability can also qualify for an extra $2,985 per year for each child under the Disability Tax Credit (DTC).
Are you and your family eligible for the GST/HST tax credit this year?
To be eligible for the CCB, you must have a child under 18 years of age under your primary care and be a Canadian resident. Parents that are eligible can apply online via their CRA accounts or submit the RC66 CCB application form.
In order to continue receiving these benefits, you must submit your income tax returns every year, no matter what your income is, even if you aren’t currently earning any income. This rule also applies to your spouse or common-law partner, if you have one.
Once the parent is approved for the benefit, they’ll receive the payment in monthly installments via direct deposit or cheque, from July of that year until June of the following year. Once the parent and/or their spouse/common-law partner have filed their income tax returns, the sum of their benefit will be recalculated that coming July, based on the details of their return, until the child or children reach the age of 18.
Depending on the number of children you have and what age they are, the amount you receive from your Canada Child Benefit could be quite favourable. This, coupled with your yearly income could help you along towards getting approved for the loan that you need. As long as you and your spouse, or you as a single parent can show that you’ll be able to afford the cost of the loan payments, you should be able to find a lender that will suit your financial needs.
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Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
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