The rising cost of living and skyrocketing rental expenses have put tremendous pressure on low- and middle-income Canadians. To provide relief, the government of Canada has reintroduced a $500 one-time housing benefit in September 2025. This support measure, announced as part of the federal affordability package, is meant to help tenants and struggling households cope with increasing housing costs.
This article covers who qualifies for the payment, how to apply, when the money will be released, and how it impacts Canadians facing housing challenges.
What is the $500 One-Time Housing Benefit?
The $500 housing benefit is a special one-off payment targeting Canadians who rent their homes and struggle to afford rising housing costs. Unlike regular housing support programs that are recurring, this initiative is a single direct payment to qualified applicants.
It aims to provide immediate relief rather than long-term housing solutions. For many, this can mean paying overdue rent, clearing utility bills, or covering part of monthly household expenses.
Eligibility Criteria
To qualify, applicants must meet specific requirements set by the government. Eligibility is based on income levels, age, and rental status.
General Requirements:
- Applicants must be Canadian residents.
- They should be 18 years or older at the time of application.
- They must be paying rent for their primary residence in Canada.
- Income must fall below set thresholds to ensure the benefit goes to those most in need.
Income Thresholds:
| Household Type | Maximum Annual Income (2024 Tax Year) |
|---|---|
| Individuals | $35,000 |
| Families | $55,000 |
Overview Table
| Factor | Details |
|---|---|
| Payment Amount | $500 one-time |
| Payment Date | September 2025 |
| Eligibility | Renters only, 18+, income threshold applies |
| Income Limit (Individual) | $35,000 |
| Income Limit (Family) | $55,000 |
| Application Mode | CRA My Account (online) |
Payment Date for the $500 Housing Benefit
The government has confirmed that payments will be disbursed in September 2025.
- Application Period: Expected to open by mid-September 2025.
- Disbursement Date: Payments will begin rolling out by the end of September 2025.
- Method of Payment: Direct deposit (for those with CRA accounts linked) or mailed cheque.
How to Apply for the Benefit
Applying for the $500 housing benefit is designed to be simple and accessible.
- Online Application: Through the Canada Revenue Agency (CRA) website.
- Login: Applicants need to log in via CRA My Account or use a secure login partner.
- Proof of Rent: Applicants may be asked to declare rental amounts paid in 2024.
- Direct Deposit Setup: Linking a bank account with CRA ensures faster payments.
Key Features of the $500 Housing Benefit
- One-Time Relief: Not recurring—only a single payout in 2025.
- Nationwide Coverage: Available across all provinces and territories.
- Targeted to Renters: Owners of homes do not qualify.
- Tax-Free: The benefit will not be considered taxable income.
Advantages of the $500 Housing Benefit
- Provides immediate financial relief.
- Helps cover essential expenses like rent, utilities, or groceries.
- Simple online application with fast direct deposit options.
- Specifically supports low- and middle-income renters, the group hit hardest by rising housing costs.
Limitations of the Benefit
- Only a one-time payment, not a permanent solution.
- Homeowners do not qualify, even if they face mortgage stress.
- Amount may not be enough in high-rent cities like Vancouver or Toronto.
Comparison Table – Old vs. New Housing Benefit
| Feature | Previous 2022 Housing Benefit | 2025 Housing Benefit |
|---|---|---|
| Amount | $500 | $500 |
| Eligibility Income (Individual) | Up to $35,000 | Up to $35,000 |
| Eligibility Income (Family) | Up to $55,000 | Up to $55,000 |
| Taxable? | No | No |
| Application Platform | CRA Website | CRA Website |
Conclusion
The Canada $500 one-time housing benefit in September 2025 is a short-term relief measure designed to support renters grappling with high housing costs. While it will not solve the deeper affordability crisis, it does provide an essential boost for individuals and families under financial strain. Canadians are encouraged to check their eligibility, apply promptly through CRA, and ensure their direct deposit information is up to date to receive payments quickly.
Frequently Asked Questions(FAQs)
Q1. Who qualifies for the $500 housing benefit in 2025?
Answer=Low- and middle-income renters with annual income below $35,000 (individuals) or $55,000 (families).
Q2. When will payments be made?
Answer= Payments will begin rolling out by end of September 2025.
Q3. Is the $500 benefit taxable?
Answer= No, the housing benefit is completely tax-free.