With the rising cost of living and ongoing rental pressures, the Canadian government has approved a $500 one-time housing payment aimed at supporting low-income renters. Distributed through the Canada Revenue Agency (CRA) under the Canada Housing Benefit, this non-taxable payment is designed to reduce financial stress and provide temporary relief to those struggling with high housing costs.
Here’s a full breakdown of who qualifies, how to apply, and when to expect your payment in May 2025.
What Is the $500 Canada Housing Benefit?
Launched initially in July 2024, the $500 one-time housing benefit offers financial support to low-income individuals and families whose rent consumes a significant portion of their income. It is a tax-free, non-recurring benefit that does not affect other social assistance programs or tax credits.
This initiative helps renters remain in stable housing by covering a portion of their costs and preventing housing insecurity or eviction.
Who Is Eligible for the $500 One-Time Payment in May 2025?
To qualify, applicants must meet the following conditions:
1. Citizenship or Residency Status
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Must be a Canadian citizen, permanent resident, or protected person
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Must live in Canada for tax purposes during the eligibility period
2. Income Threshold
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Individuals must have an adjusted net income of $20,000 or less
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Families must have an income of $35,000 or less
3. Rent Criteria
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Rent paid must be at least 30% of adjusted household net income
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The residence must be your primary home during the applicable period
4. 2021 Tax Return Requirement
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You must have filed your 2021 income tax return, which will be used to determine eligibility
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Late filers can still submit their return to qualify if done before the benefit closes
5. Proof of Rent
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Must provide rent receipts or bank statements
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You’ll also need to provide your landlord’s contact information to verify the claim
These criteria are set to ensure that only genuinely struggling renters benefit from this relief program.
Payment Schedule and Method
The CRA has not announced an official fixed date, but the benefit is expected to be paid out in May 2025. Payment processing begins after an application is approved.
| Payment Method | Processing Time |
|---|---|
| Direct Deposit | Within 5–7 business days |
| Mailed Cheque | Within 10–12 business days |
Applicants can track their payout status by logging into their CRA My Account and checking the Canada Housing Benefit section.
How to Apply for the $500 Housing Payment in May 2025
You can apply online, by phone, or by submitting a paper application. Follow these steps:
1. Online via CRA My Account
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Log in at CRA My Account
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Navigate to “Canada Housing Benefit One-time top-up”
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Fill in accurate details about your income, rent, and landlord
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Review and confirm your information
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Submit the application to receive a confirmation number
2. By Phone
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Call the CRA helpline at 1-800-282-8079 to apply
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Ideal for applicants with limited or no internet access
3. Paper Application
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Download the form from the CRA website
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Attach required documents like ID, rent proof, and tax return acknowledgment
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Mail it to the address specified in the form instructions
Regardless of the method, applicants should double-check their details to avoid delays.
Why This Payment Matters
Canada’s rental market has seen sharp increases in costs across most provinces. The $500 housing benefit:
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Eases short-term financial stress
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Reduces eviction risks
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Supports housing stability for vulnerable families
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Does not count as taxable income, making it 100% usable
Although it’s a one-time program, it provides immediate support to renters who face difficulties managing rent alongside other expenses like food and utilities.
FAQs
Who qualifies for the $500 one-time payment?
Canadian citizens, permanent residents, or protected persons with income below $20,000 (individuals) or $35,000 (families), and whose rent exceeds 30% of their net income.
Is the $500 payment taxable?
No, the $500 one-time housing benefit is completely tax-free.
Do I need to file my taxes to apply?
Yes, you must have filed your 2021 income tax return to be eligible.
How will I receive the payment?
You can choose direct deposit (5–7 business days) or mailed cheque (10–12 days) during the application.
What documents do I need to apply?
Valid ID, proof of rent payments, landlord details, and your tax return acknowledgment are required.
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