CRA Confirms $500 Canada Housing Benefit- Who Qualifies, How to Apply & Payment Dates

As rental prices continue to surge across Canadian cities, tenants are finding it increasingly difficult to balance housing costs with stagnant wages. To ease this burden, the federal government has confirmed the return of the \$500 Canada Housing Benefit for 2025—a one-time, tax-free payment for low- and moderate-income renters.

Administered by the Canada Revenue Agency (CRA), the benefit will be rolled out later this year, with applications opening in July. For millions of Canadians, this modest but meaningful support could help cover part of their monthly rent and prevent additional financial stress.

This in-depth report explains who qualifies, how to apply, when payments will be made, and why this measure matters for renters across the country.

Why the \$500 Housing Benefit Matters in 2025

Canada’s rental market has been under extreme pressure in recent years. Across major cities like Toronto, Vancouver, Calgary, and Halifax, average rents have climbed between 12% and 18% compared to pre-pandemic levels. Meanwhile, incomes for many households—particularly young workers, single parents, and seniors on fixed pensions—have not kept pace.

The result? More Canadians are paying well above the recommended threshold of 30% of income on housing, leaving less for food, childcare, transportation, and savings.

The \$500 Housing Benefit isn’t designed to solve the housing crisis, but it does provide short-term relief. For families struggling to make ends meet, it can mean:

• Covering part of a rent increase.
• Preventing the need to skip grocery bills or delay utility payments.
• Offering reassurance that the federal government recognizes the cost-of-living pressures renters face.

Who Qualifies for the \$500 Canada Housing Benefit in 2025?

Eligibility for the program is clear but specific. To qualify, you must meet all of the CRA’s requirements:

Eligibility Criteria	Requirement
Income Threshold	Less than \$35,000 (individuals) or \$55,000 (families)
Rent Paid	Must have spent 30% or more of income on rent in 2024
Age Requirement	At least 15 years old as of July 1, 2025
Residency Status	Must be a Canadian resident for tax purposes
Tax Filing	Must have filed a 2024 income tax return

Applicants may also be asked to provide rental receipts or a lease agreement as proof.

It’s important to note: this program is only for renters. Homeowners are not eligible.

Who Benefits Most?

The program is designed with vulnerable groups in mind. Those most likely to benefit include:

• Seniors living on fixed incomes, often paying more than half their pension toward rent.
• Single parents balancing childcare, work, and housing costs.
• Young workers entering the labor market, where wages are lower but rents are disproportionately high.
• Low-income families in urban centers, where rental prices outpace income growth.

The Payment Schedule for 2025

The CRA has outlined a clear timeline for the rollout:

Phase	Date	Details
Applications Open	July 15, 2025	Apply online via CRA My Account or by phone
Payments Begin	July 25, 2025	Direct deposit preferred; cheques available
Application Deadline	October 31, 2025	No late applications accepted

If approved, the \$500 benefit will be issued directly into your bank account or mailed by cheque if you are not set up for direct deposit. Processing typically takes 10–15 business days.

How to Apply – Step by Step

Applying for the \$500 benefit is designed to be straightforward. Here’s what renters need to do:

1. Log in to CRA My Account on the official government website.
2. Navigate to the “Benefits and Credits” section.
3. Select “Apply for Housing Benefit.”
4. Enter details about your rent and income for 2024.
5. Upload supporting documents (lease agreement, rental receipts) if requested.
6. Confirm your banking information for direct deposit.
7. Submit your application before October 31, 2025.

For those without internet access, the CRA will also accept applications by phone or through a mailed paper form.

Key Reminder – It’s a One-Time Payment

The Canada Housing Benefit is not recurring. It is a single, tax-free payment of \$500, available only once in 2025.

This makes it vital for eligible renters to apply before the October 31 deadline. Missing this date means missing the payment entirely, with no option to reapply.

Why Housing Support is Essential Now

Housing affordability has become one of the most pressing issues in Canada. According to national statistics:

• Over 1.5 million renters are considered to be in “core housing need.”
• In cities like Vancouver and Toronto, average one-bedroom rents exceed \$2,000 per month.
• Students and new immigrants are among the hardest hit, often spending over 50% of their income on rent.

By providing this \$500 cushion, the government aims to prevent renters from falling further behind and reduce the number of Canadians at risk of eviction or homelessness.

What Renters Should Do Now

To ensure you get your benefit on time:

• File your 2024 taxes early—this is mandatory for eligibility.
• Double-check your direct deposit information in CRA My Account.
• Keep copies of rental receipts and leases handy in case documentation is required.
• Apply as soon as applications open on July 15, 2025 to avoid processing backlogs.

Also, stay alert to scams. The CRA will never email or text you with payment links. All applications must be submitted through the official CRA portal or by phone.

5 FAQs

Q1: When can I apply for the \$500 Canada Housing Benefit?
Applications open on July 15, 2025, and must be submitted by October 31, 2025.

Q2: Who qualifies for the housing benefit?
Individuals earning under \$35,000 and families earning under \$55,000, provided they spent at least 30% of their 2024 income on rent.

Q3: How will I receive the \$500 payment?
Through direct deposit if banking details are on file with CRA, or by cheque if not.

Q4: Do homeowners qualify for the benefit?
No. The program is strictly for renters.

Q5: Is this a recurring benefit?
No. It is a one-time payment in 2025 only.