In May 2025, Canada continues to feel the pressure of rising rent and limited affordable housing. Although the Canada Housing Benefit (CHB) application period officially closed in March 2023, this one-time $500 tax-free payment remains a critical example of government efforts to support low-income renters.
As the housing crisis deepens in many parts of the country, the lessons and framework of the CHB continue to influence housing policy. Here’s what renters and housing advocates need to know about its impact and what programs are currently available.
Overview of the $500 Canada Housing Benefit
The CHB was a federal initiative launched in December 2022 to help renters manage soaring housing costs. While not a recurring payment, the benefit was timely, especially for residents of high-cost areas like Vancouver and Toronto.
Key Details at a Glance:
| Category | Information |
|---|---|
| Amount | $500 tax-free, one-time payment |
| Eligibility | Individuals: ≤ $20,000 / Families: ≤ $35,000 income |
| Rent Requirement | Paid at least 30% of 2021 income on 2022 rent |
| Residency | Canadian resident for tax purposes in 2022 |
| Tax Filing | Must have filed 2021 return |
| Platform | CRA My Account |
| Deadline | Applications closed on March 31, 2023 |
Purpose Behind the Benefit
The goal of the CHB was to offer fast, focused relief amid increasing rent burdens and inflation. As cities across Canada experienced sharp rises in rental prices with limited vacancy, this payment served as short-term financial cushioning for renters with the lowest incomes.
It was not designed to replace long-term solutions but to fill an urgent gap.
Housing Conditions in 2025: Why Support Is Still Needed
In 2025, affordability challenges remain critical. Many urban centers continue to report vacancy rates below 2%, and nearly 40% of renters in cities like Halifax and Calgary now spend more than 30% of their income on rent—well above the affordability threshold.
These conditions reflect an urgent need for sustained housing support and expanded rental aid programs.
Who Was Eligible for the CHB?
To qualify, applicants had to meet all the following conditions:
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Be at least 15 years old by December 1, 2022
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Filed a 2021 tax return
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Be a Canadian tax resident in 2022
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Income thresholds:
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Individuals: $20,000 or less
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Families: $35,000 or less
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Rent paid in 2022 must be at least 30% of their 2021 adjusted income
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Proof of rent and residence in Canada, including landlord details
How the Application Process Worked
Though no longer active, the process followed these steps:
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Log in or register on CRA My Account
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Upload proof of rental and 2021 tax return
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Submit between December 12, 2022 – March 31, 2023
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Receive payment through direct deposit shortly after approval
Active Housing Support Options in 2025
While the CHB is closed, several other programs remain available to support renters:
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CMHC Programs: Rental subsidies, housing loans, and homeownership support
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Provincial Support: Such as BC’s Rental Assistance Program and Ontario’s tax credits
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Municipal Aid: Emergency housing and shelter programs for at-risk individuals
These programs provide ongoing help and are often income-tested, like the CHB.
Legacy of the CHB: A Foundation for Future Programs
Although the $500 benefit was temporary, it set the stage for deeper conversations about national housing equity. Many policymakers are now considering income-linked housing benefits as a longer-term solution, especially in the wake of the affordability crisis.
As support for a new national housing plan grows, renters are encouraged to stay informed about upcoming announcements from both the federal and provincial governments.
Conclusion
The Canada Housing Benefit gave immediate relief during one of the country’s most difficult rental periods. While the original program has ended, it serves as a model for how the government might deliver aid more efficiently in the future.
With rent prices still climbing in 2025, Canadians should continue exploring available support and remain proactive with tax filings and official government resources to stay eligible for the next wave of housing benefits.
FAQs
What if I missed the CHB application deadline?
You can no longer apply for the $500 CHB, but you may still be eligible for other rental and housing supports offered by your province or through CMHC.
Will the Canada Housing Benefit return in 2025?
As of May 2025, no new version has been confirmed. However, continued discussions about affordable housing may lead to future programs modeled on the CHB.
Was the CHB taxable?
No. The $500 Canada Housing Benefit was a non-taxable payment and didn’t affect your annual income reporting.
What can I do if I’m still struggling with rent?
Look into federal and provincial rental aid programs. Emergency shelter or housing assistance is also available through local non-profits and municipalities.
How do I check for future housing benefits?
Visit official government portals such as Canada.ca, your CRA My Account, or provincial housing websites for the latest benefit news and program launches.
Click here to know more.
Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.