Federal and Provincial Programs to Support Canadians and Ontarians Deal With COVID-19

Updated:

September 23, 2021

Since March, restrictions and measures related to COVID-19 have escalated rapidly. The Government of Canada announced a series of measures designed to support the finances of individuals, businesses, charities, and non-profit organizations.

Federal Programs

GST Credit

One-time special payment by early May
$250-500 for Singles; $400-600 for Families
No application required
Distributed by CRA

Canada Child Benefit (CCB)

Increases maximum annual benefit payments by about $300 per child for 2019-2020 benefit year
Extra $300 per child expected for May and June 2020

Tax Deferrals

Individual filing date: June 1, 2020 (extended)
Self-Employed Filing date: June 15, 2020
Payment date: September 1, 2020 (extended)

Federal Student Loans

Payments suspension and interest accrual for 6 months
Valid: March 30, 2020 to September 30, 2020
No application required

Employment Insurance (EI) Sickness Benefit

15 weeks of income replacement
Eligibility: unable to work due to illness, injury, quarantine
One-week waiting period waived
No requirement for medical certificate
Will be rolled into CERB (see below)

Canada Emergency Response Benefit (CERB)

$2,000 per month (taxable), for up to 4 months for workers who lose their income as a result on the COVID-19 pandemic and are not eligible for regular unemployment benefits
Money will be paid out every four weeks
Benefits will be retroactive to March 15, 2020 and available until October 3, 2020
Eligibility: Individuals who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19 and are not eligible for EI. Also covered are working aprents who must stay home without pay to take care of children who are sick or at home because school and daycare closures
Application schedule varies by date of birth
Important: this income is taxable and will not be deducted at source.

Mortgage/Debt Support

Canada's large banks
Up to a 6-month payment deferral for mortgages
Opportunity for relief on other credit products
Reduced credit card interest rates
Eligibility: on a case-by-case basis

Minimum RRIF Withdrawal

Reduced by 25% for 2020

Emergency Loan Program for Canadians Abroad

Emergency loan of up to $5,000
For Canadians abroad in need of immediate financial assistance
For the purpose of returning home or to temporarily cover their needs
Application

Provincial Programs

Ontario Parents

One-time payment for parents of $200 per child 12-years-old and under; $250 if the child has a disability
Application available as of April 6, 2020 on a secure special portal

Ontario Post-Secondary Students

Provincial student loan payments and interest accrual suspension for 6 months
Begins March 30, 2020 and ends September 30, 2020
No application required

Ontario Seniors

Temporary doubling of the Guaranteed Annual Income Systems (GAINS) payment for low-income Seniors
Begins April 2020 for a period of six months
No application required

General Population of Ontario

Off-peak hydro rates applied to all hours of the day
Effective immediately
No application required

FAQs

What is financial advising?

Financial advising involves providing guidance and advice to individuals, families, or businesses to help them make informed decisions about their financial matters. This can include various aspects such as investment planning, retirement planning, tax planning, estate planning, and more. Financial advisors analyze their clients' financial situations, goals, and risk tolerance to create customized strategies that align with their objectives.

Why is financial planning important?

Financial planning is crucial for several reasons:

Goal Achievement: It helps individuals set and achieve financial goals, whether they are short-term, such as buying a home, or long-term, like funding a comfortable retirement.

Risk Management: Financial planning addresses risks by considering insurance, emergency funds, and other protective measures.

Budgeting and Saving: It promotes responsible money management through budgeting and saving, fostering financial stability.

Wealth Building: Effective financial planning can lead to wealth accumulation and the creation of a secure financial future.

Can financial advisors help with debt?

Yes, financial advisors can help with debt management. They can assess your overall financial situation, create a budget, and develop strategies to pay down debt efficiently. They may also negotiate with creditors on your behalf, provide debt consolidation recommendations, and offer guidance on prioritizing and managing debt repayment.

What exactly does a financial advisor do?

The specific responsibilities of a financial advisor can vary, but generally, they:

Conduct a thorough analysis of a client's financial situation, including income, expenses, assets, and liabilities.
Develop personalized financial plans based on the client's goals, risk tolerance, and time horizon.
Provide investment advice and portfolio management services.
Offer guidance on retirement planning, estate planning, tax planning, and insurance.
Monitor and adjust financial plans as needed based on changes in the client's life or market conditions.
Educate clients on financial matters and empower them to make informed decisions.

What is the average fee for a financial advisor?

The fees charged by financial advisors can vary widely based on factors such as the advisor's experience, the services provided, and the region.

Common fee structures include:

Hourly Fees: Advisors charge an hourly rate for their services.
Flat or Fixed Fees: A set fee is charged for specific services or a comprehensive financial plan.
Asset-based Fees: Fees are a percentage of the assets under management (AUM).
Commission-based Fees: Advisors earn commissions on financial products they sell.
Combination of Fees: Advisors may use a combination of the above fee structures.
‍
It's important to discuss and clarify fee arrangements with a potential financial advisor before engaging in their services.