Canada’s $500 One-Time Payment Coming Soon: Who’s Eligible and When It Arrives

Canada’s $500 One-Time Payment Coming Soon: Who’s Eligible and When It Arrives

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In response to escalating rental costs across the country, the Canadian government introduced the $500 One-Time Housing Benefit. Rolled out in July 2024, this initiative provides targeted financial relief to low-income renters. This payment is non-taxable and is meant to ease the financial burden on individuals and families struggling with housing affordability.

Administered by the Canada Revenue Agency (CRA), this one-off payment aims to support tenants who dedicate a significant portion of their income to rent. With inflation still impacting essential living costs in May 2025, the program continues to play a vital role in stabilizing vulnerable households.

Canada’s $500 One-Time Payment Coming Soon: Who’s Eligible and When It Arrives

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Who Qualifies for the $500 Payment in 2025?

To receive the one-time $500 payment, applicants must meet several clear-cut requirements:

Citizenship and Residency Requirements

  • You must be a Canadian citizen, permanent resident, or protected person.
  • You must live in Canada during the eligibility period and be considered a resident for tax purposes.

Income Thresholds

  • For individuals: Adjusted net income must be $20,000 or less.
  • For families: Adjusted net income must not exceed $35,000.

Rent-to-Income Ratio

  • Your monthly rent payments should represent at least 30% of your adjusted household income.
  • Only primary residences qualify. Shared accommodation must still meet these rent thresholds.

Tax Filing Obligation

  • Applicants must have filed their 2021 income tax return.
  • The 2021 Notice of Assessment is used to determine income eligibility.

Rent Documentation

  • Proof of rent paid and valid landlord details are mandatory.
  • Applicants must prove they resided primarily in the rented property.
  • This prevents fraud and ensures the benefit supports those in real need.

When Are the Payments Coming?

Although no official start date has been confirmed, disbursements are expected to occur throughout May 2025. Once approved:

  • Direct deposit recipients can expect payment within 5–7 business days.
  • Those opting for mailed cheques should allow 10–12 business days.

Applicants are encouraged to monitor their CRA My Account for updates on their payment status.

How to Apply for the $500 Benefit

The CRA offers multiple convenient methods to apply:

Online Application:

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  1. Log in to your CRA My Account.
  2. Navigate to the “Canada Housing Benefit One-Time Top-Up” section.
  3. Complete the form with accurate and updated information.
  4. Double-check your entries before submission.
  5. Submit and retain the confirmation number for future reference.

By Phone or Mail:

  • Phone: Call CRA at 1-800-282-8079 for help applying over the phone.
  • Mail: Download the form, fill it in, and send it along with required documents.
  • Ideal for individuals without internet access or those who prefer paper records.

Conclusion

As of May 2025, the $500 one-time payment under the Canada Housing Benefit remains a critical support mechanism for low-income renters across the country. With inflation still pressuring household budgets, this payment helps provide short-term relief and housing stability. Meeting the eligibility requirements is essential, and timely application ensures you don’t miss out on the benefit. The CRA has streamlined the application process, making it accessible and quick for all eligible Canadians.

FAQs

Who is eligible for the $500 housing payment?

To qualify, you must be a Canadian resident, earn under the specified income thresholds, and pay at least 30% of your income on rent.

Is this payment taxable?

No, the $500 payment is non-taxable.

How long does it take to receive the payment?

Payments take 5–7 business days via direct deposit and 10–12 days if you opt for a mailed cheque.

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Is the benefit recurring?

No. This is a one-time benefit and not part of a recurring payment program.

What documents are required?

Proof of rent payments, landlord details, and a 2021 tax Notice of Assessment are required.

What if I made a mistake on my application?

You should contact CRA immediately to correct the information.

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Can both partners in a household apply?

Only one application per household is allowed. Double applications may result in delays or denials.

Will there be another payment later in the year?

As of May 2025, no additional payments have been announced.

What should I do if my application is rejected?

You can appeal or reapply if additional documentation becomes available.

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