CRA Confirms $500 Housing Relief for Canadians – Full Eligibility and Payment Dates

In September 2025 the Government of Canada will roll out a $500 One-Time Housing Benefit to support residents struggling with rising rental and housing costs. With affordability concerns growing nationwide, this benefit is designed to offer direct financial assistance to low- and moderate-income households. For renters, homeowners with mortgages, or individuals experiencing financial hardship, the $500 payment provides immediate relief during a period of high living expenses.

What is the $500 One-Time Housing Benefit?

The $500 Housing Benefit is a non-taxable financial aid program introduced by the federal government. It is meant to cover housing-related costs such as rent, mortgage payments, utilities, or urgent home repairs.

Unlike ongoing programs, this payment is a one-time benefit to help offset the burden of escalating housing costs in major cities and rural communities alike. Importantly, recipients will not pay income tax on the $500 they receive.

Who Qualifies for the $500 Housing Benefit in September 2025?

Eligibility for the program depends on several key factors:

• Age Requirement: Applicants must be 18 years or older.
• Residency: Applicants must be Canadian citizens or permanent residents. Refugees and temporary visa holders do not qualify.
• Income Thresholds: The program is targeted at low- and moderate-income households. Limits vary by household size and province/territory.
• Housing Costs: Applicants must be paying rent or mortgage for their primary residence.
• Other Benefits: Some Canadians receiving federal programs such as the Canada Housing Benefit (CHB) or GST/HST credits may qualify automatically.
• Financial Hardship: Priority will be given to those facing hardship due to job loss, reduced income, or increased housing expenses.

How to Apply for the $500 One-Time Housing Benefit

The government has set up a simple application process to ensure quick access to funds.

Step 1: Visit the Official CRA Website

Applications will open through the Canada Revenue Agency (CRA) portal. Those without an account are encouraged to register early.

Step 2: Check Eligibility

The CRA website will include a self-check tool to confirm if you meet the program’s requirements.

Step 3: Submit Documents

Applicants will need to provide:

• Proof of residence (lease agreement or mortgage statement).
• Proof of income (recent tax return or pay stubs).
• Bank account details for direct deposit.

Step 4: Automatic Eligibility for Some Households

If you already receive the GST/HST credit or Canada Child Benefit (CCB), you may qualify automatically with no additional application required.

Step 5: Application Deadline

Applications must be submitted by late October 2025. Missing the deadline may result in forfeiting eligibility.

Payment Schedule for the $500 Housing Benefit

The government has confirmed that payments will begin in late September 2025.

Event	Date
Applications Open	Early September 2025
Application Deadline	Late October 2025
Payment Distribution	Last week of September 2025
Payment Method	Direct Deposit or Cheque

The CRA recommends updating your direct deposit details in your My Account to avoid delays. Those who choose paper cheques may face longer wait times.

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Impact of the $500 Housing Benefit

The housing affordability crisis has placed many Canadians under financial stress. The $500 one-time payment is designed to provide:

• Short-term financial relief for rent, mortgage, and utilities.
• Support for low-income households most affected by rising housing costs.
• A safety net for families, allowing them to allocate more funds toward food, healthcare, and other essentials.

Although the payment does not solve long-term housing affordability issues, it represents a timely intervention for households under immediate pressure.

Broader Context – Housing Affordability in Canada

Across Canada, particularly in Toronto, Vancouver, Calgary, and Ottawa, rental rates and mortgages have risen sharply in 2025. Combined with inflation and higher living costs, many families are finding it increasingly difficult to balance budgets.

The $500 Housing Benefit demonstrates the government’s attempt to bridge the affordability gap while continuing broader efforts to expand housing supply and stabilize the rental market.

FAQs on the $500 One-Time Housing Benefit

Q1: Who is eligible for the $500 Housing Benefit?
Residents aged 18 and older, who are Canadian citizens or permanent residents, paying rent or a mortgage, and meeting low-to-moderate income thresholds.

Q2: Do I need to apply if I already receive GST/HST credits?
In many cases, no. If you are already receiving benefits like GST/HST credits or the Canada Child Benefit, you may qualify automatically.

Q3: When will payments be made?
Payments will begin in the last week of September 2025, through direct deposit or cheque.

Q4: Is the $500 Housing Benefit taxable?
No. The payment is non-taxable, meaning recipients will receive the full $500.

Q5: What can the $500 payment be used for?
The benefit can be used for any housing-related expense, including rent, mortgage payments, utilities, or necessary home repairs.