$500 Canada Housing Benefit Returns, Check Eligibility and Claim Process

With rising rental prices and growing concerns about affordable housing, the Government of Canada has reintroduced the $500 Housing Benefit for 2025 to help low-income renters manage their living costs.

This one-time, tax-free payment is part of the government’s continued effort to ease the burden of high rent for working families, seniors, and students across the country. The initiative is aimed at those who spend a significant portion of their income on housing, especially in major urban centers where rent increases have outpaced wage growth.

One-Time Financial Relief for Struggling Renters

The $500 Housing Benefit is a one-time financial assistance payment offered under the Canada Housing Benefit (CHB) framework, delivered jointly by the Canada Revenue Agency (CRA) and the Canada Mortgage and Housing Corporation (CMHC).

Originally introduced in 2022 as part of the Housing Affordability Plan, the benefit has been revived in 2025 in response to ongoing inflation and rental market pressures.

This benefit is targeted at low-income tenants, including employed renters, seniors, students, and pensioners, to ease housing-related financial strain without affecting other government aid.

Who Can Apply in 2025?

To qualify for the Canada Housing Benefit in 2025, applicants must meet the following eligibility conditions based on their 2024 income and rental payments:

Requirement	Condition
Age	Must be 15 years or older as of December 1, 2024
Residency	Must be a Canadian resident for tax purposes in 2024
Income Threshold	– Individuals: $35,000 or less – Families: $55,000 or less
Rent Paid	Must have spent at least 30% of net income on rent in 2024
Filing Requirement	Must have filed a 2024 income tax return
Rent Documentation	Must provide valid lease/rent receipts and landlord contact details

Unlike some other support programs, this benefit is not limited to people on social assistance, making it accessible to a wider group of financially vulnerable renters.

Payment Timeline and Application Deadline

The $500 payment is scheduled to be distributed starting August 2025, shortly after the CRA completes the processing of income tax returns.

Once an application is approved, eligible recipients can expect the money to arrive within 5 to 10 business days.

The application deadline is expected to be March 31, 2026, giving ample time to submit necessary documentation and apply for the benefit.

Online and Phone Application Process Explained

Applying for the housing benefit is a straightforward process, especially for those with access to the CRA’s online portal.

Online Application Steps

1. Visit CRA My Account
2. Log in and navigate to the “Benefits and Credits” section.
3. Select “Apply for the One-Time Canada Housing Benefit”
4. Enter:

• Rental amounts paid in 2024
• Landlord’s full name and contact details
• Upload rent receipts or lease agreement

1. Review and submit the application

Phone Application for Non-Digital Users

Those who don’t have access to the internet can apply by calling CRA at 1-800-959-8281. A representative will verify your identity and assist in submitting a manual application over the phone.

Important: All submitted information must match your 2024 tax return to avoid delays or disqualification.

No Tax Impact or Reduction in Other Aid

The $500 payment is completely tax-free, meaning it does not affect your taxable income or reduce any other benefits you receive.

It will not interfere with programs such as:

• Old Age Security (OAS)
• Guaranteed Income Supplement (GIS)
• Canada Workers Benefit (CWB)
• Provincial housing subsidies

This makes the $500 Housing Benefit a risk-free source of support for qualifying renters.

What You Need to Prepare

To complete your application smoothly, gather the following documents beforehand:

• Lease agreement or rental contract
• Rent receipts for 2024
• Landlord’s name and contact details
• Notice of Assessment from your 2024 tax return

Failure to submit accurate or complete information can delay your payment or result in application denial.

Eligibility Even with Other Housing Programs

Yes, you can still receive the $500 federal benefit even if you already receive provincial rent assistance. This includes programs such as:

• Ontario’s Rent-Geared-to-Income (RGI)
• Alberta’s Temporary Rent Assistance Benefit
• British Columbia’s SAFER Program

As long as you meet the federal criteria, other local or provincial supports do not disqualify you.

Maximize Your Chances of Getting Approved

To ensure quick approval and payment, follow these steps:

• Double-check your income eligibility before applying
• Ensure your rent paid matches your tax return
• Use CRA’s online calculator (if available) to pre-check eligibility
• Apply as early as possible to avoid the year-end rush

A careful and early application will help you avoid delays and secure your one-time benefit without complications.

Relief During a Period of Housing Insecurity

With rent prices continuing to climb, especially in major metropolitan areas, this $500 payment offers essential financial relief for thousands of Canadians.

The benefit helps renters cope with cost pressures and aligns with the government’s broader strategy to address housing affordability.

Even though it’s a one-time benefit, it plays a significant role in bridging the gap for vulnerable households while longer-term housing initiatives are being developed.

Frequently Asked Questions

Q1. Can I apply for the $500 Housing Benefit if I live with roommates?
Yes. As long as your name is on the lease or rent receipts, and you meet the income and rent spending criteria, you are eligible—even if others share the unit.

Q2. Will the $500 benefit affect my other government payments?
No. It is non-taxable and will not reduce or affect other benefits like OAS, GIS, or provincial assistance.

Q3. Can new immigrants or temporary residents apply?
No. Only those who are Canadian tax residents and have filed a 2024 income tax return are eligible for this benefit.