In July 2025, the Canadian government officially reaffirmed the $500 Canada Housing Benefit, offering one-time rental support for low- to moderate-income renters facing rising housing costs.
Administered by the Canada Revenue Agency (CRA), this benefit is part of the country’s larger national housing strategy to address affordability challenges in the rental market. With inflation continuing to strain household budgets, especially in cities like Toronto, Vancouver, and Montreal, this one-time top-up aims to provide targeted relief to those most at risk of housing insecurity.
What Is the $500 Canada Housing Benefit?
Unlike monthly programs like the Canada Child Benefit, the CRA $500 Housing Benefit is a one-time, non-taxable payment designed to ease short-term financial stress.
This support is especially important in 2025 as rents remain 12% to 18% higher than pre-pandemic levels. Many tenants are struggling to balance rent payments with daily necessities like food and medication.
While modest in amount, the $500 can be the difference between stability and eviction for many households.
Who Is Eligible for the CRA $500 Housing Benefit in 2025?
To qualify for the 2025 housing top-up, applicants must meet specific income and rent contribution criteria, based on their 2024 tax information.
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Eligibility Requirements:
- Net Income (2024):
- Individuals: Less than $35,000
- Families: Less than $55,000
- Rent Paid: You must have spent at least 30% of your net income on rent in 2024
- Residency: Must be a Canadian resident for tax purposes and at least 15 years old
- Tax Filing: You must have filed your 2024 income tax return before applying
- Documentation: CRA may request rental receipts, lease agreements, or proof of payment
These requirements ensure the benefit is reserved for those genuinely burdened by housing costs.
Key Dates: CRA Payment Timeline and Deadlines
The CRA has set clear dates for application submission and payment processing in 2025:
| Phase | Date | Details |
|---|---|---|
| Applications Open | July 15, 2025 | CRA portal and helpline open for benefit applications |
| Payouts Begin | July 25, 2025 | Direct deposits prioritized; cheques sent by mail |
| Application Deadline | October 31, 2025 | No late applications will be accepted |
To avoid payment delays, ensure your banking details are up to date in your CRA My Account before applying.
Why the $500 Payment Matters in 2025
Despite the government’s efforts to tackle housing affordability, rental costs in many Canadian cities remain out of reach for lower-income households.
Groups who may benefit the most from this payment include:
- Seniors on fixed incomes
- Single-parent families
- Students and young adults in transitional housing
- Working-class families impacted by inflation
For these groups, the $500 benefit can provide a crucial buffer—helping them afford rent without sacrificing other essentials.
How to Apply for the CRA $500 Housing Benefit
The application process is straightforward and can be completed in several ways.
Online via CRA My Account:
- Log in to your CRA My Account
- Navigate to the “Benefits and Credits” section
- Select the Housing Benefit application
- Fill in your details and upload any documents requested
Paper Application:
- Those without internet access can call the CRA helpline to request a paper form
- Processing takes around 10–15 business days for most applicants
To avoid rejection, ensure all details are accurate and supporting documents are attached as needed.
Special Cases and Situational Questions
If you’ve recently moved or live in a shared rental arrangement, here’s what you should know:
- Moved in 2025? You can still apply if your rent paid in 2024 meets the eligibility threshold
- Living with roommates? You’ll need to prove your share of rent is 30% or more of your net income. Lease agreements or bank transfer receipts may be required
Frequently Asked Questions (FAQs)
Q1. Is the $500 housing benefit taxable?
No. This is a non-taxable payment and does not affect your eligibility for other CRA programs like the GST/HST credit or Canada Child Benefit.
Q2. Can I apply if I live with roommates or family?
Yes, as long as your personal rent share equals 30% or more of your net income, and you can provide proof.
Q3. Do I need to reapply if I received the benefit in previous years?
Yes. Each housing benefit year is treated separately. If you’re eligible for 2025, you must submit a new application.
Q4. What happens if I miss the deadline?
Unfortunately, late applications will not be accepted. The final date to apply is October 31, 2025.
Q5. What if my bank info with CRA is outdated?
Log in to your CRA My Account and update your direct deposit details before applying. Incorrect banking info may delay or block your payment.
