CRA Confirms $500 One-Time Housing Payment for Canadians – Check Eligibility, Dates, and Application Details

Across Canada, households are feeling the pressure of a growing cost-of-living crisis. With rent prices soaring in major cities and mortgage rates climbing due to higher interest rates, many Canadians are finding it increasingly difficult to manage their monthly housing costs. Recognizing this financial strain, the federal government has stepped in with a new relief measure — the $500 One-Time Housing Benefit, launching in September 2025.

This payment is designed to provide immediate support to Canadians struggling to pay for their homes, whether they rent or own. In this article, we will break down everything you need to know about this benefit, including eligibility rules, payment dates, application steps, and key updates.

What Is the $500 One-Time Housing Benefit?

The $500 One-Time Housing Benefit is a special one-off payment created by the Canada Revenue Agency (CRA) under the government’s short-term financial relief strategy. It aims to help low- and middle-income residents manage rising housing costs amid persistent inflation and increasing rents.

Unlike recurring programs, this benefit will only be issued once, offering an immediate boost to those in urgent need. Importantly, this payment is tax-free, meaning eligible applicants will receive the full $500 amount directly into their bank accounts without deductions.

Beneficiaries can use the funds toward rent, mortgage installments, utility bills, or urgent home repairs. The flexibility of the program ensures that each household can prioritize its most pressing needs.

Canada One-Time Housing Benefit 2025 – Quick Overview

Details	Description
Authority	Canada Revenue Agency (CRA)
Program Name	$500 One-Time Housing Benefit
Country	Canada
Payment Amount	$500 (tax-free)
Beneficiaries	Eligible low- and middle-income Canadian residents
Eligibility Criteria	Adults (18+) with verified housing or financial needs
Payment Type	One-time payment
Processing Time	4–6 weeks
Application Deadline	December 31, 2025
Official Website	canada.ca

Who Qualifies for the $500 Housing Benefit?

Not every Canadian will be eligible for this one-time housing payment. The federal government has established specific eligibility requirements to ensure the funds are directed to those who genuinely need assistance.

Applicants must meet the following conditions:

• Age Requirement: Must be at least 18 years old at the time of application.
• Citizenship Status: Must be a Canadian citizen or permanent resident. Refugees, temporary visa holders, and international students are not eligible.
• Income Thresholds: The benefit targets low- and middle-income households. Income limits vary based on household size and region to reflect local cost-of-living differences.
• Housing Type: Both renters and homeowners with active mortgages are eligible if they meet the income criteria.
• Existing Benefit Recipients: Individuals already receiving GST/HST rebates or the Canada Child Benefit (CCB) may be automatically approved without needing to apply separately.

When Will the $500 Payments Be Made?

The application period for the One-Time Housing Benefit will begin in early September 2025 and remain open until the end of October 2025.

• Applications Open: September 2025
• Payments Begin: Last week of September 2025
• Application Deadline: October 31, 2025
• Final Processing Completion: 4–6 weeks from submission
• Program Ends: December 31, 2025

This timeline ensures most recipients receive their $500 payment before winter, when utility bills and heating costs typically rise.

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

Applying for this benefit is straightforward and can be done online through the CRA’s My Account portal. Here’s a step-by-step guide:

1. Log In: Visit CRA My Account and log in using your credentials.
2. Check Eligibility: Use the CRA’s online eligibility tool to verify whether you qualify for the benefit.
3. Complete the Application: Fill out the online application form with accurate details such as income, address, and housing type.
4. Upload Supporting Documents: Attach necessary documents like lease agreements, rent receipts, mortgage statements, or proof of income.
5. Update Banking Details: Ensure your direct deposit information is up to date to avoid delays.
6. Submit Application: Review your information carefully before submitting.

Applicants already receiving other federal benefits may not need to reapply, as the CRA can use existing data to confirm eligibility automatically.

What Documents Are Required?

Applicants should prepare the following documents before starting the application:

• Proof of Identity (e.g., passport, permanent resident card)
• Proof of Residency (utility bill, lease agreement, etc.)
• Proof of Income (T4, Notice of Assessment, or pay slips)
• Proof of Housing Costs (rent receipt, lease, or mortgage statement)
• Direct Deposit Information (void cheque or online banking details)

Submitting clear, valid documents will help avoid delays during processing.

How the $500 Benefit Can Be Used

This tax-free payment offers flexibility, allowing recipients to manage their housing costs effectively. Renters can apply it toward monthly rent, overdue balances, or utility bills, while homeowners may choose to use it for mortgage installments or essential home repairs.

The benefit also provides breathing room for families with children, freeing up funds for other critical expenses like groceries, school supplies, or healthcare costs.

By targeting both renters and homeowners, the federal government hopes to reduce the immediate financial pressure many Canadians face during the ongoing cost-of-living crisis.

Processing Time and Payment Method

Once an application is submitted, the CRA typically processes it within 4–6 weeks. Payments will be issued through direct deposit, ensuring recipients receive funds quickly and securely.

Applicants can track their payment status through their CRA My Account dashboard. Those who prefer mailed cheques can request one, but this may take longer.

Why This Benefit Matters Now

The $500 One-Time Housing Benefit arrives at a critical time for Canadians. Inflation, rising rent, and interest rates have stretched household budgets thin. For many families, even a modest $500 can help cover urgent bills, stabilize housing, or prevent late payment penalties.

Moreover, the government has emphasized that this program complements — not replaces — existing support measures like the Canada Child Benefit and GST/HST Credit. It’s part of a broader federal strategy to maintain economic stability and protect vulnerable citizens from housing insecurity.

Government’s Broader Plan for Housing Relief

Beyond this one-time payment, the federal government is also working on long-term housing affordability programs. These include investments in affordable housing construction, rent supplements, and partnerships with provinces and municipalities to expand access to low-cost homes.

By offering a mix of immediate and long-term relief, Ottawa aims to build a more stable and equitable housing system across Canada.

Important Reminders for Applicants

• Always ensure your CRA account details (address, banking info, and contact number) are up to date.
• Submit your application before October 31, 2025, to avoid missing the benefit.
• Keep digital copies of all submitted documents for reference.
• Watch for official updates only on the Canada.ca website to avoid scams or misinformation.

FAQs

Q1. What is the $500 One-Time Housing Benefit in Canada?
The $500 One-Time Housing Benefit is a tax-free payment introduced by the Government of Canada to help low- and middle-income households manage housing costs in 2025.

Q2. Who is eligible to receive the $500 payment?
Canadians aged 18 or older who are citizens or permanent residents, have low or moderate income, and either rent or own their home with a mortgage may qualify.

Q3. How can I apply for the $500 Housing Benefit?
You can apply online through the CRA My Account portal, fill out the eligibility tool, submit the application form, and provide supporting documents such as proof of income or housing expenses.

Q4. When will payments be issued?
Payments are expected to begin in the last week of September 2025 and continue through October, depending on when your application is processed.

Q5. Is the $500 payment taxable?
No, the $500 One-Time Housing Benefit is completely tax-free, and recipients will receive the full amount directly through direct deposit or mailed cheque.