As housing costs soar across Canada, the federal government—via the Canada Revenue Agency (CRA)—has confirmed the return of a one-time $500 housing benefit in 2025.
This tax-free assistance aims to ease the rent burden for low-income renters. The program offers meaningful support—even if temporary—to households navigating escalating housing expenses.
Who Qualifies for the 2025 Benefit?
| Eligibility Criteria | Requirement |
|---|---|
| Income Threshold | Individuals: net income ≤ $35,000; Families: ≤ $55,000 |
| Rent Burden | Must have spent ≥ 30% of income on rent in 2024 |
| Age & Residency | 15 years or older; Canadian tax resident |
| Tax Filing | 2024 income tax return must be filed |
Applications are managed through CRA systems and may require documentation like rent receipts or lease agreements to prove eligibility.
How to Apply—Step by Step
- Log in to CRA My Account (or call CRA for phone applications).
- Go to “Benefits and Credits”, then select “Apply for Housing Benefit.”
- Enter your 2024 rent and income details.
- Upload documentation like lease or rent receipts, if prompted.
- Review and confirm your direct deposit information.
- Submit before the October 31 deadline.
CRA alternative methods include paper forms or phone-based applications for those unable to access the portal.
Application Timeline & Payment Dates (2025)
| Phase | Date | Details |
|---|---|---|
| Applications Open | July 15, 2025 | Apply online via CRA My Account or by phone |
| Payments Begin | July 25, 2025 | Paid via direct deposit (cheques for non-bank users) |
| Application Deadline | October 31, 2025 | No submissions accepted afterward |
Processing is typically completed within 10–15 business days once the application has been submitted.
Why This Support Matters
In 2025, average rents remain 12–18% higher than pre-pandemic levels in urban centres. Many households—especially seniors on fixed incomes, single parents, and new workers—are spending upwards of 30% of their income on rent, making it harder to afford necessities like food and utilities.
Although the $500 benefit is modest, it provides:
- Immediate financial relief to prevent skipped bills or homelessness risk.
- Psychological reassurance that the government acknowledges rental pressures.
- Extra breathing room for vulnerable groups.
The $500 Canada Housing Benefit for 2025 is a one-time, targeted relief measure for low-income renters burdened by rising housing costs. Eligibility hinges on income and rent burden, and applications begin mid-July through CRA. Though not a long-term fix, this benefit brings immediate, necessary support during financially challenging times.
FAQs
No—it’s a single, one-time payment in 2025 only. There’s no renewal or recurring installment.
Yes—your 2024 income tax return must be filed before you apply to be eligible.
To qualify, rent must have been at least 30% of your household income in 2024. Falling below this threshold means you’re not eligible.