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 increasing living expenses.
This one-time, tax-free payment is aimed at providing direct financial support to eligible Canadians struggling to keep up with rent amid ongoing inflation.
Here’s a complete breakdown of what the $500 Canada Housing Benefit is, who qualifies, when it’s being paid, and how to apply.
What Is the $500 Housing Benefit in 2025?
The $500 Housing Benefit is a one-time financial aid provided through the Canada Housing Benefit (CHB) initiative. It is a joint effort between the Canada Revenue Agency (CRA) and the Canada Mortgage and Housing Corporation (CMHC).
Originally introduced in 2022 as part of Canada’s Housing Affordability Plan, this benefit has been renewed for 2025 due to continued economic pressure on renters.
The goal of this program is to assist low-income individuals and families who spend a significant portion of their income on rent. The benefit is designed to provide relief to working renters, students, and pensioners across the country.
Who Is Eligible for the $500 Housing Benefit?
To qualify for the 2025 Canada Housing Benefit, applicants must meet all of the following eligibility conditions:
| Eligibility Criteria | Requirement |
|---|---|
| Age | Must be 15 years or older as of December 1, 2024 |
| Residency | Must be a Canadian resident for tax purposes in 2024 |
| Income Limit | Adjusted net income must be: – $35,000 or less for individuals – $55,000 or less for families |
| Rent Requirement | Must have spent at least 30% of income on rent in 2024 |
| Tax Filing | Must have filed a 2024 income tax return |
| Proof of Rent | Must provide landlord details, rent receipts, or a lease agreement |
This benefit is available even if you already receive other social or housing assistance, as long as you meet the above conditions.
When Will the $500 Benefit Be Paid in 2025?
The CRA will begin issuing the $500 payments starting August 2025, after processing 2024 tax returns.
Eligible applicants will typically receive the payment within 5 to 10 business days of approval.
The application deadline is expected to be March 31, 2026, allowing several months for qualified individuals to gather documents and apply.
How to Apply for the $500 Canada Housing Benefit
Applying for the 2025 benefit is simple and can be done online or by phone.
Online Application via CRA
- Log in to CRA My Account at www.canada.ca/my-account
- Go to the “Benefits and Credits” section
- Select “Apply for the One-Time Canada Housing Benefit”
- Enter your rent details, landlord’s name and contact info
- Upload rent receipts or lease documents
- Review and submit your application
Phone Application (For Non-Digital Applicants)
If you don’t have internet access:
- Call the CRA at 1-800-959-8281
- Verify your identity with a representative
- Apply manually over the phone
Important: Make sure the information in your application matches your 2024 tax return to avoid delays or rejections.
Is the $500 Housing Benefit Taxable?
No. This payment is completely tax-free. It will not affect your eligibility for any of the following:
- Old Age Security (OAS)
- Guaranteed Income Supplement (GIS)
- Canada Workers Benefit (CWB)
- Provincial housing programs
This makes the $500 benefit an excellent financial aid option with no tax consequences or impact on other support programs.
What Documents Are Needed to Apply?
You must have the following documents ready when applying:
- Lease agreement or rent contract
- Rent receipts for 2024
- Landlord’s name and contact details
- 2024 Notice of Assessment (from CRA)
Submitting incomplete or incorrect documents can delay or even disqualify your application.
Can I Still Apply If I Already Receive Provincial Rent Assistance?
Yes. The federal $500 benefit is separate from provincial housing support programs. Even if you already receive assistance through programs like:
- Ontario’s Rent-Geared-to-Income (RGI)
- Alberta’s Temporary Rent Assistance Benefit
- British Columbia’s SAFER Program
—you are still eligible if you meet the federal criteria.
Tips to Ensure a Smooth Application Process
Here are some helpful suggestions for a successful application:
- Double-check your 2024 income to ensure it falls within the required range
- Gather rent receipts and lease agreements before starting your application
- Use the CRA’s online calculator, if available, to check eligibility
- Apply early to avoid delays closer to the 2026 deadline
Taking these steps can help you get your $500 benefit as soon as possible.
Why This Program Matters for Renters in 2025
With rent prices reaching record highs in many Canadian cities, the $500 one-time housing benefit offers a much-needed financial cushion for vulnerable renters.
Whether you’re a student living alone, a retired senior, or part of a low-income family, this program is designed to help you stay housed and reduce the stress of rising costs.
It’s a timely initiative that reflects the government’s ongoing commitment to affordable living.
Frequently Asked Questions (FAQs)
Q1. Can I apply if I live with roommates?
Yes, as long as the rent is in your name and you meet the income and rent conditions, you can apply. Each eligible tenant in a shared unit can apply individually.
Q2. Will this payment impact other government benefits?
No. The $500 benefit is non-taxable and will not reduce your access to other federal or provincial benefits such as OAS, GIS, or social assistance.
Q3. Can new immigrants or temporary residents apply?
No. Only individuals who are Canadian tax residents, filed a 2024 tax return, and meet all criteria are eligible.