In July 2025, the federal government officially reaffirmed the continuation of the \$500 housing benefit—a one-time payment aimed at helping low- and moderate-income renters cope with rising rent prices. Administered through the Canada Revenue Agency (CRA), this benefit is part of Canada’s broader national housing affordability strategy.
With rent costs remaining high in major cities and inflation continuing to strain household budgets, the benefit offers direct, targeted support to those hit hardest by housing pressures.
What Is the \$500 Housing Benefit? (Overview of the One-Time Relief)
Unlike ongoing monthly supports such as the Canada Child Benefit, the \$500 housing benefit Canada 2025 is a single top-up payment. It’s designed to assist renters who spend a significant portion of their income on housing and are struggling to keep up with current rental market rates.
This one-time payment offers relief to tenants across the country, especially in high-cost regions like Toronto, Vancouver, and Montreal, where rent inflation continues to outpace income growth.
Who Qualifies for the \$500 CRA Housing Benefit? (Eligibility Criteria)
To receive the 2025 housing payment, applicants must meet specific income and residency requirements based on their 2024 tax year filings. The criteria include:
- Income Threshold:
- Single individuals: Net income below \$35,000
- Families: Net income below \$55,000
- Rent Paid:
- At least 30% of total household income must have gone toward rent in 2024
- Residency:
- Must be a Canadian resident for tax purposes
- Must be at least 15 years old
- Tax Filing:
- Must have filed a 2024 income tax return
The CRA will use its records to verify eligibility automatically, but may request supporting documents like rental receipts or lease agreements to confirm rent expenditures.
Key CRA Payout Dates for July 2025 (Important Deadlines)
The CRA has begun accepting applications for the 2025 benefit cycle. Here’s a clear timeline of what to expect:
| Phase | Date | Details |
|---|---|---|
| Applications Open | July 15, 2025 | Online CRA portal and phone lines go live |
| CRA Payout Begins | July 25, 2025 | Direct deposit prioritized; cheques sent by mail |
| Application Deadline | October 31, 2025 | No late applications accepted |
Approved recipients will see the \$500 payment deposited directly into the bank account linked to their CRA profile.
Why This Rental Relief Still Matters in 2025 (Economic Context)
Despite government efforts to stabilize home prices, rental affordability remains a critical issue in 2025. Recent data shows that average rent prices in Canadian cities are still 12–18% higher than they were before the pandemic.
This benefit is more than just a financial gesture—it’s a lifeline for vulnerable renters, including:
- Young workers in urban areas
- Seniors on fixed incomes
- Single parents balancing childcare and housing costs
For many, this one-time top-up can make the difference between covering rent or falling behind.
How to Apply for the \$500 Housing Benefit (Step-by-Step Guide)
Applying for the housing support is a simple, digital-first process—but timely action is key. Here’s how to do it:
Step 1: Log In to CRA My Account
Go to the CRA website and sign into your My Account portal.
Step 2: Navigate to “Benefits and Credits”
Click on the section dedicated to housing and affordability support.
Step 3: Submit Application
Complete the form with accurate rental information and confirm that at least 30% of your income went toward rent.
Step 4: Upload Documents (If Required)
If prompted, submit rental receipts, lease agreements, or other verification materials.
Step 5: Wait for Processing
CRA generally processes applications within 10–15 business days. Direct deposit is the fastest method of receiving payment.
For Canadians without internet access, paper applications are available by request through CRA’s contact centres.
Important Tips for a Smooth Application Process
To avoid any issues with your application, follow these key tips:
- File your 2024 tax return immediately, if not already done
- Ensure your banking and mailing details are up to date in CRA My Account
- Retain all rent-related documents, even if not requested at the time of application
- Apply well before the October 31 deadline to avoid last-minute system delays
What Makes the 2025 Housing Benefit Different?
This year’s version of the \$500 housing benefit builds on earlier programs while introducing minor updates to reflect evolving economic conditions.
Notable improvements:
- Income thresholds updated for inflation
- Application process simplified through CRA’s digital platform
- Expanded outreach to ensure awareness among low-income renters
The initiative also aligns with Canada’s ongoing federal housing strategy, which prioritizes short-term relief paired with long-term solutions like rent caps, affordable housing development, and provincial rental subsidies.
