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In July 2025, the Canadian government reaffirmed the continuation of the $500 housing benefit for eligible individuals, aiming to provide relief to renters struggling with rising housing costs.
This one-time direct payment is designed to assist lower-income tenants in coping with the financial pressure caused by high rental rates in urban areas.
Administered by the Canada Revenue Agency (CRA), the initiative forms part of Canada’s broader strategy to tackle housing affordability issues.
The $500 CRA payout is different from the Canada Child Benefit and is not an ongoing monthly benefit. Instead, it is a one-time top-up payment meant to alleviate the strain caused by high rental costs.
This benefit is especially crucial for individuals in cities like Toronto, Vancouver, and Montreal, where rental prices have been climbing steadily.
Who Qualifies for the $500 Housing Benefit in 2025?
Eligibility for the $500 housing benefit in 2025 is based on specific financial and residency criteria. While the rules remain largely unchanged from previous years, there are some minor updates for 2025. To qualify, applicants must meet the following conditions:
- Income Threshold:
- Individuals must have a net income below $35,000 for the 2024 tax year.
- Families must have a combined net income of $55,000 or less.
- Rent Paid:
- Applicants must have paid at least 30% of their total household income toward rent in 2024.
- Residency:
- Applicants must be Canadian residents for tax purposes and at least 15 years old.
- Tax Filing Requirement:
- All applicants must have filed their 2024 tax returns.
The CRA verifies eligibility based on tax records and may ask for additional documents, such as rental receipts or lease agreements. This benefit is intended specifically for low- to moderate-income renters experiencing significant rental stress.
Key Dates for the CRA Payout in July 2025
The $500 housing benefit payout will be processed by the CRA in July 2025, with the following key dates for the application process:
| Phase | Date | Details |
|---|---|---|
| Applications Open | July 15, 2025 | Applicants can submit applications online or by phone. |
| CRA Payout Begins | July 25, 2025 | Direct deposits will be prioritized; cheques will follow. |
| Application Deadline | October 31, 2025 | Late applications will not be accepted. |
Once approved, the $500 benefit will be directly deposited into the applicant’s bank account linked with the CRA, similar to previous relief programs. Applicants who prefer a cheque will receive one after the direct deposit process is complete.
Why Rental Support Still Matters in 2025
Despite efforts to stabilize housing prices, rental support remains a necessity. Data from spring 2025 shows that average rents in many Canadian cities are still 12–18% higher than pre-pandemic levels.
The $500 housing benefit offers crucial temporary relief for renters struggling with rising costs.
Low-income renters, including young workers, seniors, and single-parent households, continue to face challenges from stagnant wages and inflation.
For these individuals, the $500 housing benefit acts as a critical safety net, helping them avoid eviction or the difficult choice between paying for housing or other essential needs.
How to Apply: A Quick Guide
To apply for the $500 housing benefit in 2025, eligible individuals can follow these steps:
- Log in to their CRA My Account.
- Navigate to the “Benefits and Credits” section.
- Complete and submit the application, including rental information.
- If requested, upload supporting documents like lease agreements or rental receipts.
Paper applications are available for those who do not have access to the internet. Processing times typically take 10–15 business days. Ensure that banking details are up to date with the CRA for direct deposit.
The $500 Canada housing benefit is an essential relief initiative for renters facing high housing costs in 2025.
By helping low-income households manage rising rental prices, it provides critical support to prevent evictions and ensure stable housing for those who need it most.
FAQs
Who is eligible for the $500 housing benefit in 2025?
Eligibility requires a net income below $35,000 for individuals or $55,000 for families, with at least 30% of income going toward rent in 2024.
How can I apply for the $500 housing benefit?
Applicants can apply through the CRA My Account portal or by phone, submitting rental information and required documents.
When will I receive the $500 payment?
The CRA will start processing payments on July 25, 2025, with direct deposits prioritized.