In July 2025, the Canadian government officially reaffirmed the $500 Canada Housing Benefit, a one-time rental support program aimed at easing the financial pressure on low- and moderate-income renters across the country.
Administered by the Canada Revenue Agency (CRA), this benefit is a key element of the federal government’s broader effort to address housing affordability during a time of continued inflation and elevated rental prices. While it is not a recurring payment like the Canada Child Benefit, it delivers immediate help to those most affected by Canada’s tight rental market.
Who Qualifies for the $500 Housing Benefit in 2025?
To receive the $500 CRA housing top-up, applicants must meet all of the following eligibility criteria:
- Net income for 2024:
- Individuals: Under $35,000
- Families: Under $55,000
- Rent threshold: You must have paid at least 30% of your household income on rent in 2024.
- Residency: Must be a Canadian resident for tax purposes and at least 15 years old.
- Tax requirement: Must have filed your 2024 income tax return before applying.
In some cases, the CRA may request supporting documents like rental receipts, lease agreements, or proof of payment to verify your eligibility.
Application and Payment Schedule: Key Dates in 2025
The CRA housing benefit timeline for 2025 has now been released. Here are the key phases and deadlines:
| Phase | Date | Description |
|---|---|---|
| Applications Open | July 15, 2025 | CRA’s online portal and call center begin accepting submissions |
| CRA Payout Begins | July 25, 2025 | Direct deposits prioritized; paper cheques sent soon after |
| Deadline to Apply | October 31, 2025 | Late applications will not be accepted |
Payments are made via direct deposit to the bank account linked with your CRA My Account. If your personal or banking details are outdated, update them before applying to avoid processing delays.
Why the $500 Payment Matters More Than Ever in 2025
Despite various housing strategies introduced in recent years, rental costs remain stubbornly high in cities like Toronto, Vancouver, and Montreal. According to recent reports, average rents in urban centers are still 12%–18% higher than pre-pandemic levels.
The $500 housing benefit offers critical financial assistance for vulnerable renters, especially:
- Seniors living on fixed pensions
- Single-parent households
- Low-wage earners and young adults in precarious living conditions
Though the amount is not enough to cover full rent, it may help prevent eviction, cover overdue rent, or relieve the burden of choosing between housing and other essentials like food and transportation.
How to Apply for the $500 CRA Housing Benefit
The CRA has streamlined the application process to make it accessible for all eligible Canadians. Here’s how to apply:
- Log in to CRA My Account using your SIN and password.
- Navigate to the “Benefits and Credits” section.
- Click on the $500 Canada Housing Benefit application.
- Upload supporting documents (e.g., rental receipts, lease) if prompted.
- Submit your application.
For those without reliable internet access, paper applications can be requested by calling the CRA’s benefits helpline. Standard processing time is 10 to 15 business days, depending on application volume and document verification.
What Makes This a One-Time Benefit?
Unlike recurring programs, this housing top-up is meant to provide short-term relief in response to the ongoing housing crisis. It does not affect other CRA benefits like the Canada Workers Benefit, GST/HST Credit, or Canada Child Benefit.
It’s also non-taxable, meaning recipients will not have to declare it as income in their future tax filings.
Real Impact for Canadians Facing a Housing Crunch
For many renters, especially those already on the edge financially, $500 can mean stability for at least one month. This is particularly true in communities where rental inflation has outpaced wage growth.
This one-time CRA housing payment is designed to:
- Stabilize housing for at-risk tenants
- Reduce homelessness risk
- Support families facing rising rental costs
If you’re eligible and haven’t applied yet, it’s crucial to do so before the October 31, 2025 deadline.
FAQs
Q1. Is the $500 benefit taxable?
No, the benefit is non-taxable and does not impact eligibility for other federal or provincial benefits.
Q2. Can I apply if I live with roommates?
Yes. As long as your share of the rent equals at least 30% of your personal income, you are eligible. Be ready to provide supporting documents.
Q3. What if I moved during 2025?
That’s okay. As long as your rent paid in 2024 meets the eligibility criteria, you can apply. Keep receipts and lease agreements handy for verification.