In July 2025, the Canadian government officially reaffirmed the $500 Canada Housing Benefit, a one-time rental support initiative aimed at easing the housing burden on low- to moderate-income renters.
Administered by the Canada Revenue Agency (CRA), this benefit forms part of the government’s ongoing national strategy to improve housing affordability amid ongoing inflation and a tight rental market.
Unlike recurring payments such as the Canada Child Benefit, this $500 top-up is meant to provide temporary yet impactful financial relief to those struggling with rent costs, particularly in cities like Toronto, Vancouver, and Montreal, where rents remain at historically high levels.
Who Is Eligible for the $500 Housing Benefit in 2025?
To qualify for the $500 Canada Housing Benefit 2025, applicants must meet the following updated criteria:
- Net Income:
- Individuals: Less than $35,000
- Families: Less than $55,000 (for the 2024 tax year)
- Rent Paid:
- You must have paid at least 30% of your household income toward rent in 2024.
- Residency:
- You must be a Canadian resident for tax purposes and at least 15 years old.
- Tax Filing:
- Your 2024 tax return must be filed before applying.
The CRA may also ask for documents such as rental receipts or lease agreements to validate your claim.
Payment Timeline & CRA Application Dates
The following table outlines key CRA housing benefit dates in 2025:
| Phase | Date | Details |
|---|---|---|
| Applications Open | July 15, 2025 | CRA portal & call center open for submissions |
| CRA Payout Begins | July 25, 2025 | Direct deposits prioritized; cheques mailed afterward |
| Application Deadline | October 31, 2025 | No late applications will be accepted |
Once approved, payments are sent via direct deposit to the bank account linked with your CRA profile. If your details are outdated, update them in My CRA Account to avoid delays
Why the $500 Benefit Matters in 2025
Despite progress in housing strategies, rental affordability remains a crisis in many parts of Canada. Recent market reports show that average rents in metropolitan areas are still 12% to 18% higher than before the pandemic.
The $500 housing benefit acts as a lifeline for many vulnerable groups:
- Seniors on fixed incomes
- Single parents
- Young adults in unstable housing situations
While the amount is modest, it can make a real difference in preventing eviction or choosing between rent and groceries.
How to Apply for the $500 CRA Housing Benefit
Eligible individuals can apply using the following steps:
- Log in to your CRA My Account
- Go to the “Benefits and Credits” section
- Fill out the housing benefit application
- Upload documents like rental receipts if prompted
Those without internet access can request paper applications via CRA’s helpline. Processing times are usually 10–15 business days.
The $500 Housing Benefit Canada 2025 is a well-targeted, one-time support payment that addresses the ongoing housing affordability issues many Canadians face.
By helping renters manage their housing costs, the CRA-administered benefit plays a vital role in maintaining housing stability for thousands of individuals and families. If you’re eligible, don’t wait — apply before the October 31, 2025 deadline to secure your payment.
FAQs
Is the $500 benefit taxable?
No, this one-time benefit is non-taxable and does not affect other CRA-administered benefits.
Can I apply if I live with roommates?
Yes, but you must prove that your share of rent equals 30% or more of your income. Documentation may be required.
What if I moved in 2025?
You can still apply if your rent in 2024 met eligibility criteria. Be ready to provide proof of past rental payments.