Free Canadian government grants to pay off debt

Free Canadian government grants to pay off debt


Maxine McCreadie

February 28, 2023 7:00 am GMT
Debt can be a major source of stress for many Canadians. Whether it’s credit card debt, student loans, or other forms of debt, it can be difficult to know where to turn for help.

Fortunately, the Canadian government offers a variety of grants to help citizens pay off their debt.

In this article, we’ll explore the different types of government grants available for debt repayment, as well as eligibility requirements and application processes.

Does Canada have a Canadian debt payback fund?

Although the Canadian government does not provide free grants to debtors, it regulates and licenses certain debt relief programs and services.

This ensures that associated fees are monitored and that these services adhere to government regulations.

The government does not offer its own credit counseling services, however it may refer individuals to independent services.

It is worth noting that any loans and grants for debt relief advertised as being from the Canadian government are not directly provided by the government, but rather function within government rules and regulations.

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Types of Canadian government grants available to pay off debt

If you’re dealing with debts you can’t afford to repay you may be entitled to government support.

Below are just some of the grants available to Canadian citizens to help them pay off debt.

Canada Student Loan Forgiveness Program

This program provides debt relief for individuals who have taken out government student loans.

Depending on your profession, you may be eligible to have a portion or all of your student loans forgiven.

Home Buyer’s Plan

If you’re a first-time homebuyer, the Home Buyer’s Plan allows you to withdraw up to $35,000 from your Registered Retirement Savings Plan (RRSP) to put towards a down payment on a home.

Canada Emergency Business Account

The Canada Emergency Business Account is designed to help small businesses impacted by the COVID-19 pandemic.

Eligible businesses can receive a forgivable loan of up to $60,000 to help cover expenses and pay off debt.

Canada Small Business Financing Program

The Canada Small Business Financing Program provides loans of up to $1 million to small businesses to help them grow and expand.

These loans can be used to pay off existing debt or to invest in new equipment or property.

Canada Job Grant

This grant helps employers train their employees and cover the costs associated with training.

Employers can receive up to two-thirds of the cost of training, up to a maximum of $10,000 per employee.

Enabling Accessibility Fund

This fund provides grants to businesses and organizations to help make their facilities more accessible for people with disabilities.

These grants can be used to pay off debt associated with accessibility improvements.

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Eligibility requirements for Canadian government grants

Each grant has its own set of eligibility requirements.

For example, to be eligible for the Canada Student Loan Forgiveness Program, you must work in certain professions, such as nursing or social work.

To determine your eligibility for a particular grant, it’s best to check the government’s website for more information.

Their ‘Managing Debt’ page is a good place to start if you are struggling with debt.

Free Canadian government grants to pay off debt

How to apply for Canadian government grants to pay off debt

To apply for a government grant, you’ll need to follow the specific application process for that grant.

Some grants require you to fill out an application form and provide supporting documents, while others may require you to apply through a specific government agency.

It’s important to carefully read the instructions for each grant and to ensure that you provide all of the necessary information.

There are also resources available to help you with the application process. For example, some banks and credit unions offer assistance with government grant applications, and there are also government-funded organizations that can help you with the application process.

Other debt repayment options available to you

While government grants can be a helpful resource for paying off debt, they aren’t the only option available.

Other options include debt consolidation loans, credit counseling and debt management programs, and consumer proposals.

It’s important to carefully weigh all of your options before deciding on the best course of action for your particular situation.

Here’s an example of how we can help

Let’s say you owe…

CRA Debt


Canadian Tire Card


TD Bank Overdraft


Utilities Arrears


CashMoney Loan


Student Debt


Total amount owed:


Repayments reduced by 88%

* monthly payments are based on individual financial circumstances

How could a consumer proposal help me pay off debt?

A consumer proposal is a debt relief option available to Canadians who are struggling with unmanageable debt.

It is a legal agreement between a person and their creditors, in which the person offers to pay back a portion of their debts over a period of time.

There are several ways that a consumer proposal can help Canadians pay off their debt.

Reducing the total amount owed

When a person files a consumer proposal, they typically offer to pay back a percentage of their debt.

This can be as little as 30% or even less in some cases. If the proposal is accepted by the creditors, the person will only have to pay back the agreed-upon amount, which can significantly reduce their total debt load.

Stopping collection calls and legal action

When a person is in debt, they may be receiving frequent calls from creditors and collection agencies.

These calls can be stressful and overwhelming, and they can make it difficult to focus on finding a solution. Filing a consumer proposal will stop these calls, as creditors are legally required to stop all collection activity once a proposal is filed.

Providing a structured repayment plan

A consumer proposal provides a structured repayment plan that is manageable for the person.

This plan outlines the specific amount of debt that will be repaid, as well as the timeframe for repayment. This can make it easier for the person to budget their finances and ensure that they are able to make their payments on time.

Protecting assets

Filing a consumer proposal can help protect a person’s assets, such as their home, car, and RRSPs.

Unlike with bankruptcy, a person does not have to give up their assets when they file a consumer proposal. Instead, they can continue to make payments on these assets and keep them.

Avoiding bankruptcy

Filing a consumer proposal is a good option for Canadians who want to avoid filing for bankruptcy.

While bankruptcy can be a helpful solution for some, it can have long-lasting effects on a person’s credit score and financial future. A consumer proposal, on the other hand, allows a person to pay back their debts while avoiding the negative consequences of bankruptcy.


If you’re struggling with debt, it can be helpful to know that there are government grants available to help you pay it off.

From the Canada Student Loan Forgiveness Program to the Enabling Accessibility Fund, there are a variety of grants available to suit different needs.

By carefully reviewing the eligibility requirements and application process for each grant, you can increase your chances of being approved.

And if government grants aren’t the right fit for you, there are other debt repayment options available as well.

To discuss how a debt solution could help you rebuild your finances, get in touch with one of our advisors today.

Write off up to 80% of your unaffordable debt

We’ve helped thousands of people, just like you, write off unsecured debt they can’t afford and enjoy a life free of pressure from the people they owe money to. 

If you’re looking for help, or you’re worried about your ability to repay the debt you owe, A. Fisher & Associates is here to support you.

For free advice and guidance tailored to your financial situation, you can talk to one of our debt experts today. Give us a call for free on 416-842-0040


Maxine McCreadie

Maxine is an accomplished financial writer, known for her expertise in the field of personal insolvency. Having worked in the international insolvency community for a number of years, she has gained a deep understanding of the intricacies of personal finance and the complexities of insolvency processes.

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