Financial Support For Single Parents: Loans And Government Aid
Raising a child as a single parent can be a serious financial challenge. Thankfully, there are a number of financial resources to help if money is a little tight.
From loans for single parents to financial aid from the government, there are many options to help alleviate the financial burden, especially when emergency expenses pop up. Here are some of the more accessible and easy-to-understand examples.
Key Points
1. Single moms and dads in Canada have several loan options available to them, including personal loans, car title loans, payday loans, and home equity loans, among others.
2. Single parents who cannot qualify with a traditional lender due to income struggles may find more luck by applying with an alternative lender.
3. Even single parents on government benefits may use those payouts as income to qualify for a loan.
What Kind Of Financial Support Is Available For Single Mothers In Canada?
Whether you’re a single mom or dad on a low-income and are looking for extra financial support, here are a few resources you can seek.
Government Aid
- Canada Child Benefit (CCB). The Canada Child Benefit provides single parents with a tax-free payment each month if their child is under 18. Payment amounts depend on the parent’s income, the number of children in the home, and where the family lives.
- GST/HST Tax Credit. Single parents and low-income families can also get a tax-free quarterly GST/HST credit to help offset the sales taxes they pay through the year. When you file your income taxes, the CRA automatically considers you for this credit.
- Provincial And Territorial Credits And Benefits. Depending on where you live, you may be eligible for other government programs. For example, single parents in British Columbia can get the BC Family Benefit, a tax-free monthly payment for parents with children under 18 years of age.
- Child Disability Benefit. The Child Disability Benefit provides tax-free monthly payments to eligible families caring for a child with a disability, up to $284.25 per month per child, or $3,411 per year.1
- Children’s Special Allowances (CSA). The CSA provides tax-free monthly payments to agencies, like Children’s Aid Societies, that care for children under 18 years old. The amount is equivalent to the maximum Canada Child Benefit, and if the child qualifies, the payment may also include the Child Disability Benefit.
Learn more: Government Benefit Programs
City And Non-Profit Resources
Several non-profit organizations offer financial help for single parents who are struggling. You can use 211.ca to find organizations in your area. Here are a few examples:
- Cause We Care Single Mothers Support Fund: Single moms looking to improve their lives may find help through the Cause We Care Foundation’s Single Mothers Support Fund. This program provides financial support to women seeking to gain new skills or update their qualifications to improve their education and job opportunities.
- Women’s Centre Of Montreal: This organization provides several services to assist women with financial needs, including food assistance, holiday baskets, clothing for interviews, diapers, and baby clothes.
- Huggies No Baby Unhugged: Through its No Baby Unhugged program, Huggies gives expecting parents and parents of newborns a free box of diapers and wipes. You can sign up as a Huggies member if you are at least 20 weeks pregnant or have a baby 4 weeks old or younger.
- Local Women’s Shelters And Family Charities: Many cities have women’s shelters and family-focused non-profits that offer emergency financial assistance, child care supplies, or help with rent and utility bills.
- Food Banks And Community Centres: Your local food bank or community centre may offer grocery support, free meals, or vouchers for essential goods. These services are often available through partnerships with city governments or churches.
Scholarships And Grants For Single Parents
To help parents build an education fund for their children, several programs are available:
- Canada Education Savings Grant: The government adds money through the Canada Education Savings Grant when you contribute to a Registered Education Savings Plan (RESP), up to a lifetime maximum of $7,200 per child.3
- BMO Bank of Montreal Scholarship for Single Parents: Single moms and dads who are studying full-time at Royal Roads University may qualify for the BMO Bank of Montreal Scholarship for Single Parents.
- Canada Student Grant for Full-Time Students with Dependants: Full-time students with children may be eligible for this grant, worth up to $280 per month per dependant, or up to $2,240 per year per dependant.2
Loans For Single Mothers And Fathers
As a single parent, you may need extra cash quickly to cover urgent expenses such as a school trip, food, diapers, and a number of other costs.
The options below are among the most accessible, but they are not the only ones. Depending on how much you need and what you can offer as security, you might also consider a payday loan for a small, fast advance, a car title loan if you own your vehicle, or a home equity loan if you own your home. Just keep in mind that these can be costly or put an asset at risk.
Fast Cash Advances With No Credit Checks
| Option | What It Offers |
|---|---|
| Bree | Quick, no-interest cash advances without affecting your credit score. |
| Nyble | A small, interest-free credit line that helps build your credit with on-time payments. |
Personal Loans
Single moms and dads can apply for personal loans to cover just about any expense, including education, food, clothing, transportation, and even rent, among other things. Your lender will provide you with a fixed loan amount, which is then repaid through installments over a set period.
Filters
- Amount
- Up to $35,000
- Rate
- 9.99% – 34.95%
- Term
- 6 – 84 Months
- Amount
- Up to $60,000†
- Rate
- 19.99% – 34.99%*
- Term
- 6 – 120 months
- Amount
- Up to $10,000
- Rate
- Up to 34.99%
- Term
- Up to 60 months
Can You Get A Personal Loan With Bad Credit Or A Low Income?
If you have poor credit or low income, you can apply with a private lender. Private lenders have less strict loan criteria than banks, making it easier to get a loan with bad credit. Applications can be completed online within a few minutes, and you can even use your government benefits as a source of income. Plus, approval times can be faster than those of a financial institution. That said, it’s important to remember that these loans can be expensive in terms of the interest paid and may come with additional fees.
Using Government Benefits As Income To Qualify
You do not necessarily need a paycheque from a job to qualify for a loan. Many alternative and private lenders accept government benefits as a source of income, which is a big help for single parents whose income comes partly or fully from government support. Benefits that a lender may count include:
- The Canada Child Benefit (CCB)
- Provincial or territorial income and disability assistance
- Employment Insurance (EI)
- Court-ordered child support
What matters most to a lender is not the size of your income, but how steady and predictable it is. In Loans Canada’s study of roughly 500,000 loan applications, the stability of someone’s income moved approval odds more than almost anything else, and the single most controllable factor was direct deposit.4
The boost from direct deposit was especially large for people whose income came from government benefits. So if your benefits are not already deposited straight into your bank account, setting that up before you apply is one of the easiest ways to strengthen your application.
To use a benefit as income, be ready to show a recent history of those deposits, usually through your bank statements or a benefit statement.
What Are The Minimum Requirements To Qualify For A Loan As A Single Mom Or Dad?
The specific loan approval requirements you’ll run into can vary depending on which lender you apply with, how much money you’d like to borrow, and how strong your finances are. Here are some of the main factors that lenders consider when assessing your loan application as a single parent.
Credit Score
Having a good credit score (at least 660+) is key to securing a loan. While some loans may not always involve a credit check, lenders typically look at your credit score as a way to determine your creditworthiness. As such, it helps to apply with good credit to boost your chances of loan approval.
Check your score for free. Knowing your credit score before applying for a loan gives you an idea of your chances of approval. If you’re unsure what your credit score is, you can check it for free on Loans Canada’s CompareHub.
Job Status
Another important element for loan approval is your income and employment status. The best way to qualify for a suitable loan is to apply with a steady full-time job, as this shows income stability and reduces the risk of loan default.
Income
The higher your income is, the easier it will be to qualify for a large loan with a decent interest rate and term. The minimum income amount will vary depending on the loan type and lender. That said, be sure to understand the lender’s minimum income requirements before applying.
Debt Level
The more outstanding debts you have, the harder it is to qualify for a loan. Debt can also get in the way of securing a low rate and favourable loan terms.
More specifically, the lender will calculate your debt-to-income (DTI) ratio, which is a measure of your current monthly debt relative to your income. It’s recommended to have a DTI ratio no higher than 44% to secure financing.
How To Increase Your Chances Of Getting A Loan As A Single Mom
Whether you’re a working mom or dad or a single parent on benefits in Canada, getting a loan can be difficult. Don’t worry, because there are a few ways to help you qualify for an affordable loan.
Research And Compare Quotes
There are tons of online and physical lenders all across Canada, each offering different rates and loan conditions. Any good lender should also give you a free loan quote to factor into your budget.
A quick and easy way to find a lender and compare offers is to use an online comparison site, like Loans Canada. Simply type in some information about your finances and the loan you need, and a list of lenders in Canada that may offer what you’re looking for will populate.
Improve Your Finances
While it can be difficult to maintain a full-time or second job as a single mom or dad, any income and savings you can generate will help make your application stronger. By paying down debt and not using too much credit, you’ll increase the likelihood of loan approval.
Boost Your Credit Score
As noted, your credit score plays a key role in your ability to secure a loan as a single parent. If time is on your side and your credit score could use some improvement, take the following steps to increase your score:
- Make bill payments on time. Payment history is a huge factor in your credit score. Late payments harm your credit score, while timely payments can give it a boost.
- Keep your credit utilization low. Aim to use less than 30% of your credit limit.
- Check your credit report for mistakes. Errors on your credit report can unfairly lower your credit score. Pull your report, look for mistakes, and dispute them.
- Limit new credit applications. Applying for too many loans or credit products can pull your credit score down, given the hard inquiries involved.
Use A Cosigner
If your income or credit score isn’t good enough to qualify, a more stable borrower can cosign your loan. A cosigner acts as a backup for the lender, agreeing to take full responsibility for the loan if you fail to make payments.
While this can be a helpful option for self-employed or lower-income borrowers, it is a serious commitment for the cosigner, as missed payments or default will affect both of your credit scores and can strain your relationship. Make sure your cosigner fully understands the risks before signing.
Apply For A Secured Loan
If you’re a single mom or dad, you can lower your risk as a borrower by offering collateral. You may get better approval odds by offering your lender some security, such as your vehicle or home. Be careful though, as a secured loan means your lender has the right to seize your asset if you miss too many payments.
Are You A Single Mom Looking For A Loan In Canada?
While it may seem difficult to get approved for a loan on a single income, it is possible. Even if you’re a single mom or dad on benefits in Canada, there are many alternative lenders who may still qualify you for a loan to help you cover an urgent or unexpected expense. Be sure to do some comparison shopping with different lenders first to find the best financing options you can afford.
Loans For Single Parents FAQs
Loan amounts and approval requirements can vary from lender to lender. While getting a loan from a traditional bank may not be possible if you have bad credit or weak finances, you could get one with an alternative lender. Some alternative lending companies can offer you a loan of up to $35,000, as long as you meet their minimum requirements.
Legally, no. Lenders are not allowed to judge you based on your marital status, under human rights legislation. In most cases, the main deciding factor is whether or not you can cover your loan payments. However, you may be denied or considered less creditworthy if you’re struggling to pay off a lot of pre-existing debt from a divorce, such as legal fees or alimony payments.
To get the lowest interest rate, keep your credit score high, compare lenders, negotiate your loan terms, choose a shorter loan term, and make a larger down payment if possible.
Yes. In addition to loan products, there are government financial assistance programs available to financially struggling parents. These include social assistance programs, child assistance programs, disability assistance programs, and tax credits.
Yes, there are a few hardship grants and financial assistance programs for single mothers in Canada, including the Canada Child Benefit, the Canada Student Grant for Full-Time Students with Dependants, and the Single Mothers Support Fund.
References
- Canada Revenue Agency. (2025). Child disability benefit. Government of Canada. https://www.canada.ca/en/revenue-agency/services/child-family-benefits/child-disability-benefit.html
- Government of Canada. (2025). Canada Student Grant for full-time students with dependants. https://www.canada.ca/en/services/benefits/education/student-aid/grants-loans/dependants.html
- Government of Canada. Canada Education Savings Grant (CESG). https://www.canada.ca/en/services/benefits/education/education-savings/resp-grants-bonds.html
- Correia, P. (2026). Who really gets approved for a loan? Insights from half a million applications. Loans Canada. https://loanscanada.ca/stats/study-who-really-gets-approved-for-a-loan-insights-from-half-a-million-applications/
