In July 2025, the Canadian government confirmed the continuation of the $500 Housing Benefit, designed to provide a critical, one-time payment to low-income renters burdened by rising rent costs.
Managed by the Canada Revenue Agency (CRA), this temporary support is an integral part of Canada’s strategy to improve housing affordability in major cities where rent remains exceptionally high.
What Is the $500 Housing Benefit?
This support is a one-time, tax-free payment aimed at renters under financial stress, not a recurring monthly payment like other benefits. It’s designed to help offset the impacts of inflation and limited housing supply, particularly in high-rent areas such as Toronto, Vancouver, and Montreal.
Who Can Receive the $500 Housing Benefit in 2025?
| Eligibility Criteria | Details |
|---|---|
| Income | Individuals: net income ≤ $35,000 (2024); Families: combined net income ≤ $55,000 |
| Rent Burden | At least 30% of household income spent on rent in 2024 |
| Residency & Age | Canadian tax resident; aged 15 or older |
| Tax Filing | 2024 tax return must have been filed |
| Administration | Managed by the CRA, with eligibility confirmed via tax and rental records, possibly requiring supporting documents |
Key Dates for 2025 $500 Housing Benefit
| Phase | Date | Details |
|---|---|---|
| Applications Open | July 15, 2025 | Apply via CRA My Account or by phone |
| Payments Begin | July 25, 2025 | Direct deposit prioritized; cheques follow |
| Application Deadline | October 31, 2025 | No applications accepted after this date |
Recipients who meet eligibility and apply before the deadline will receive the payment directly—just like other cash-based relief programs through the CRA.
Why This Support Matters in 2025
- Rent Remains High: In spring 2025, average rents across many Canadian cities remained 12–18% above pre-pandemic levels.
- Targeted Relief: The one-time $500 doesn’t erase the problem but helps reduce the risk of eviction and eases decisions between essential expenses.
- Focus on Vulnerable Groups: Young workers, seniors, and single-parent households are among the hardest hit by rising rents and benefit the most.
How to Apply for the 2025 $500 Housing Benefit
- Log into CRA My Account and navigate to the Benefits and Credits section.
- Complete the housing benefit application, entering your rental and income details.
- If prompted, upload documents like lease agreements or rent receipts.
- For those without online access, paper forms or phone applications are available.
- Ensure your banking details are up to date for smooth, timely payment. Processing typically takes 10–15 business days.
The $500 Housing Benefit in 2025 is a vital short-term aid for renters facing financial strain. Administered by the CRA, this one-time, tax-free payment offers meaningful help for low-income households navigating an expensive rental market. Act soon—apply by October 31—and check your CRA My Account to secure this support.
FAQs
Is the $500 Housing Benefit recurring or one-off?
It is a one-time payment only and does not recur monthly.
Do I need to file my 2024 tax return to qualify?
Yes — filing your 2024 tax return is a mandatory requirement to be eligible.
What if my rent was less than 30% of my income?
The benefit requires that at least 30% of income was spent on rent; if you fall below this threshold, you would not qualify.