Smarter Loans Inc. is not a lender. Smarter.loans is an independent comparison website that provides information on lending and financial companies in Canada. We work hard to give you the information you need to make smarter decisions about a financial company or product that you might be considering. We may receive compensation from companies that we work with for placement of their products or services on our site. While compensation arrangements may affect the order, position or placement of products & companies listed on our website, it does not influence our evaluation of those products. Please do not interpret the order in which products appear on Smarter Loans as an endorsement or recommendation from us. Our website does not feature every loan provider or financial product available in Canada. We try our best to bring you up-to-date, educational information to help you decide the best solution for your individual situation. The information and tools that we provide are free to you and should merely be used as guidance. You should always review the terms, fees, and conditions for any loan or financial product that you are considering.
While getting free money sounds a bit scammy, the money from the Canadian government takes away the stigma. Both federal and provincial governments offer cash incentives, whether you need money for education or for upgrading the energy efficiency in your home. Unclaimed money also awaits taxpayers who do not know they have the funds available. You just need to know where to look. Below are some of the top ways you can receive government money.
“Yikes!” That was the reaction of some Canadian taxpayers who found they had hundreds of dollars in benefits or taxes they had not cashed. Some of the money retrieved went back to the year 2008! You can find out if you have any money still waiting for you by setting up a My Service Canada account through the Canada Revenue Agency (CRA).
You can also benefit from government intervention by taking advantage of Canada’s Registered Retirement Savings Plans (RRSPs) and its Tax Free Savings Accounts (TFSAs), both which allow you to grow wealth tax-free. You can enroll in the plans, which feature investments, such as bonds and stocks. The contributions you make to RRSPs and TFSAs do not get taxed, even if you receive capital gains. In fact, RRSPs often reduce the taxes you pay so you can regularly receive a refund annually. Plus, if you sign up for an RRSP at work, your employer may match what you contribute – yet another way to receive free money.
If you do not have an RRSP or TFSA and are a beginning investor, you might think about opening up an account using a robo-advisor – a way to manage your investments electronically if not more proficiently.
You can also receive government compensation by using Canada’s Benefits Finder Tool online. The tool helps you find benefits or money you may be eligible to get. It does not collect your personal details. It just helps you determine eligibility.
Under a program established by the Canadian government, first-time home buyers can share in the cost of purchasing a house with the Canada Mortgage and Housing Corporation, or CMHC. For lower income Canadians, the program reduces the size of an insured mortgage loan and reduces the monthly payments.
Basically, the First Time Buyer Program enables Canadians who make under $120,000 per year to get a first home. Under the program the CMHC contributes 5% of the house’s value via a shared investment. The incentive is increased to 10% for newly-built houses. Canadians who are buying their first home can access their RRSP to fund their house as well.
Getting a secondary education tends to get expensive. By maximizing your Registered Education Savings Plan (RESP), you can get the government’s help financially. A RESP allows savers to invest in their children’s future education tax-free.
However, the best part about this program is the free money you can get through the Education Savings Plan. When you add to a RESP, the government matches you with 20% of the deposit you make, or as much as $500 annually. Grants max out at $7,200 for each child.
If you fall in the lower or middle income range, you may also qualify for a Learning Bond. How much you get will depend on the number of children in your family and how much you make in income.
This educational option allows you to receive $2,000 from the government for each of your children, beginning at $500 for the first year and up to $100 annually for each year a child remains eligible. Eligibility for children in the program ends after they turn 15 years old.
Maybe you have older parents who have some mobility difficulties or you have mobility issues yourself. If so, the government’s Home Accessibility Tax Credit (HATC) is used for renovations, such as wheelchair ramps and in-home stairlifts. You get rewarded for reducing the likelihood of injuries and can claim as much as $10,000 for the home improvements. That can translate to a tax rebate of 15% when tax time rolls around.
You can overcome insomnia or those sleepless nights of being a parent through governmental intervention. Using the Canada Child Benefit allows you to receive a large monthly payment, free of tax. What you get is determined by the number of children in your household, their age, and your family’s earnings. However, the amount is limited to $563.75 per child (as of 08/27/2021).
Did you know that the Bank of Canada has a registry that allows people to recoup forgotten bank money? The country’s central bank doled out $8.5 million from forgotten bank accounts in 2019 with the oldest balance traced to the year 1900. While getting money from the central bank is not directly related to the government, it offers an indirect means of receiving cash. Click on this link to get into the Bank of Canada’s unclaimed money portal.
Are you a student struggling to pay for your studies? If so, you can reduce educational costs by applying for the Canada Student Grant. The grant money has been doubled for the 2020 to 2021 academic calendar year. If you are from a low- or middle-income family and enrolled in undergrad studies, you can get $6,000 annually as a full-time student. Part-time students receive up to $3,600 in grant money.
Canadians are naturally interested in preserving the environment. After all, the country is home to many beautiful wildlife sanctuaries. Provinces, territories, and some cities offer incentives for saving energy in the home.
For example, you can receive cash or a tax credit for conserving energy. This can be done by making renovations, such as adding a rooftop garden or sealing and caulking your windows. Not only can you save money on your energy bill, you can also receive hundreds of dollars by taking an active part in stopping climate change.
You can access a tool, featured by the government of Canada, that provides a broad list of federal programs and grants for businesses.
Government loans in Canada are less expensive. Not only should you check on non-repayable grants, you should learn about no-interest loan funding. This loan funding, offered through the Business Development Program, are repayable financial contributions the government makes where no interest is added to the borrowed funds. Therefore, taking advantage of this type of funding arrangement makes it possible for you to reap benefits from the government indirectly.
Because the government is handing out free money, you won’t receive the funds overnight. After all, the government is giving you money, so it wants to make sure it has an “airtight alibi.” While it may take up to 6 months to a year to get funded, in some cases, it is well worth the wait.
Don’t overlook the value of any of the above funding opportunities. The Canadian government is handing out money. Don’t miss out on this chance to improve your life and stay on top of your budget for your family or business.
