Canada Confirms $500 One-Time Relief: In April 2025, Canada confirms a $500 one-time relief payment as part of the government’s ongoing efforts to support low-income renters facing the mounting pressure of high living costs. This tax-free benefit, provided through the Canada Housing Benefit (CHB), is tailored to assist those disproportionately impacted by Canada’s ongoing housing affordability crisis.
This article serves as a complete guide to help you understand your eligibility, the application process, and timelines to receive the benefit. Whether you’re a tenant navigating rent hikes or a professional supporting clients in financial need, this resource will walk you through everything with clarity and expertise.
Canada Confirms $500 One-Time Relief
| Category | Details |
|---|---|
| Program | Canada Housing Benefit (CHB) – One-Time $500 Payment |
| Payment Date | Starting April 2025 |
| Eligibility | Individuals earning <$20,000/year or families earning <$35,000/year |
| Rent Threshold | Must spend 30%+ of income on rent |
| Application Deadline | April 31, 2025 |
| Where to Apply | CRA My Account or by phone: 1-800-282-8079 |
| Taxable? | No, it’s completely tax-free |
The $500 Canada Housing Benefit relief payment offers timely assistance to renters across Canada. If your household income is under the specified threshold and rent eats up a significant chunk of your income, this payment can help lighten the load.
By applying early and submitting the correct documentation, you ensure a smoother process. Remember, the deadline to apply is April 31, 2025. For more information or assistance, visit the CRA official website or call their helpline.
What Is the $500 One-Time Relief Payment?
The $500 one-time relief payment is a targeted support measure introduced by the federal government under the Canada Housing Benefit (CHB). This initiative recognizes the growing burden of rent and utility costs among lower-income households across the country. The intent is to provide financial breathing room for people who allocate a significant portion of their earnings just to stay housed.
This benefit is not recurring but rather a supplementary, non-repayable boost intended to immediately ease monthly rent pressures. In an environment where inflation has sharply increased housing prices, and where vacancy rates are historically low, such relief is more than welcome.
Recent data from Statistics Canada reveals that nearly 32% of Canadian renters now spend over 30% of their income on shelter costs—a common threshold for housing unaffordability.
Who Qualifies for the $500 Canada Housing Benefit Payment?
Qualification for this benefit depends primarily on two key factors: household income and rental expenses. Let’s explore both in detail.
Income Requirements
To be considered eligible:
- Single applicants must have an adjusted net income of $20,000 or less.
- Families (couples or with dependents) must have an income of $35,000 or less.
The CRA assesses your eligibility using your 2023 Notice of Assessment. This ensures the evaluation is based on the most recent full fiscal year data.
Rental Expense Requirements
In addition to income requirements, your rental burden must exceed a key threshold:
- You must have spent at least 30% of your 2025 income on rent.
What Counts as Rent?
- Lease or rental payments for your primary residence
- Utilities included in your rent such as electricity, water, or heat
- Mandatory condo or building fees (e.g., parking, building maintenance)
You can calculate your rent-to-income ratio by dividing your total 2025 rent by your adjusted income and multiplying by 100.
Example: If your income is $18,000 and you paid $6,000 in rent, your rent-to-income ratio is 33% — which qualifies.
How to Apply for the $500 One-Time Relief
Applying for the Canada Housing Benefit relief is straightforward and can be done through digital or telephone methods, depending on your comfort level with technology.
1. Online via CRA My Account
The simplest and fastest way to apply is through the CRA’s online portal:
- Go to CRA My Account
- Log in securely using your CRA credentials
- Navigate to the “Benefits and Credits” section
- Select the “$500 Canada Housing Benefit” option
- Complete the form and upload the necessary documents
This method allows you to track your application status and receive faster updates.
2. Apply by Phone
If you prefer human assistance or don’t have online access, call CRA directly:
- Dial 1-800-282-8079
- Follow the prompts to reach a customer service representative
- Have your SIN, 2023 tax assessment, and rent receipts ready
The agent will assist you in completing your application and may verify some information on the spot.
Documents You Need to Apply
To ensure your application is approved without delays, gather the following documents:
- 2023 Notice of Assessment (as proof of income)
- Rent receipts or a landlord’s letter that clearly indicates monthly payments and tenancy status
- Valid government ID such as a passport, provincial card, or driver’s license
It’s recommended to scan and save these documents digitally in PDF format, especially if applying online.
When Will I Receive My $500 Payment?
Processing time will vary depending on the method of application and document verification. Here’s what to expect:
- Direct Deposit: Funds are deposited into your bank account within 5 to 7 business days after approval.
- Cheque by Mail: Mailed payments can take 10 to 12 business days, depending on Canada Post.
Ensure that your CRA My Account profile is updated with your latest address and direct deposit information to avoid delays.
Is the $500 Payment Taxable?
Absolutely not. This relief is a non-taxable, non-repayable grant, meaning it does not count toward your annual income and won’t reduce your eligibility for other benefits.
It will not interfere with:
- Canada Child Benefit (CCB)
- GST/HST Credit
- Old Age Security (OAS)
- Guaranteed Income Supplement (GIS)
- Other provincial social assistance programs
Why Is This Payment Important?
With the average rent for a 2-bedroom apartment in cities like Toronto and Vancouver exceeding $2,200/month (CMHC), many Canadians find it increasingly difficult to keep a roof over their heads.
This $500 payment, though modest, offers meaningful relief in situations such as:
- Preventing eviction due to late rent payments
- Covering essential household expenses during a tough month
- Offsetting seasonal utility bills (winter heating or summer cooling)
More importantly, it highlights a continued federal commitment to housing equity and financial stability.
FAQs About Canada Confirms $500 One-Time Relief
Can students apply for the $500 housing payment?
Yes, provided the student meets income and rent thresholds, they are eligible. This includes part-time students or those relying on financial aid.
What if I live in subsidized housing?
As long as you pay 30% or more of your income in rent, even if subsidized, you may qualify. Proof of payment is key.
Do I need to repay this benefit?
No. This is a one-time, tax-free grant. You don’t owe anything back to the government.
What if I moved during the year?
Keep documentation for all rental addresses in 2025. If the total rent exceeds 30% of your income, you remain eligible.
Can both partners in a household apply?
No. The benefit is limited to one application per household, regardless of how many people contribute to rent.
