CRA Confirms $500 One-Time Housing Payout in September – Eligibility Rules and Dates

In September 2025, the Canadian government will introduce a $500 One-Time Housing Benefit to ease the financial burden of rising housing costs. With rent and mortgage payments climbing across the country, this support measure aims to provide much-needed relief for low- and middle-income households who are finding it difficult to manage day-to-day expenses.

The program is designed as a non-taxable cash benefit, meaning recipients can use the money directly for rent, mortgage payments, or housing-related costs without worrying about deductions. Let’s explore the details, eligibility rules, application process, and payment timeline for this new initiative.

What Is the $500 One-Time Housing Benefit?

The $500 Housing Benefit is a short-term financial aid program created to help Canadians facing housing affordability challenges. Unlike monthly subsidies or permanent welfare programs, this payout is a single cash transfer provided directly to eligible residents in September 2025.

Its primary goal is to give households some breathing space in the face of:

• Rising rental costs in urban centres
• Higher mortgage payments due to interest rate changes
• Increasing utility and maintenance bills

The payment is direct, simple, and tax-free, ensuring families can apply it immediately to pressing financial needs.

Who Is Eligible for the $500 Housing Benefit?

Not everyone will qualify. The government has outlined several eligibility criteria:

1. Age Requirement – Applicants must be 18 years or older.
2. Residency Status – Only Canadian citizens and permanent residents qualify. Temporary visa holders and refugees are excluded.
3. Income Thresholds – Targeted at low- and middle-income households, with income limits adjusted by household size and province.
4. Housing Costs – Applicants must show they pay rent or mortgage on their primary residence. Homeowners may also qualify if their mortgage payments fall within the eligibility rules.
5. Existing Benefits – Individuals already receiving Canada Housing Benefit (CHB) or GST/HST credits may automatically qualify.
6. Financial Hardship – Priority may be given to those experiencing job loss, reduced earnings, or sudden rent hikes.

This ensures the benefit reaches those most impacted by Canada’s housing affordability crisis.

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

The government has streamlined the process through the Canada Revenue Agency (CRA). Here’s how to apply:

1. Visit the Official Portal – Log in to your CRA My Account at canada.ca.
2. Check Eligibility – Use the CRA’s online eligibility checker to confirm you meet the income and residency requirements.
3. Fill Out the Application – Provide:

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

1. Automatic Qualification – If you already receive GST/HST credits or CCB, you may not need to apply separately.
2. Submit & Confirm – Review your application carefully and submit. A confirmation email or CRA account notice will follow.

For applicants without online access, paper applications and walk-in support will be available at Service Canada locations.

Payment Schedule – When Will You Get the $500?

The payment rollout is expected as follows:

Event	Date
Application Opens	Early September 2025
Application Deadline	Late October 2025
Payment Distribution	Last week of September 2025
Payment Method	Direct deposit or cheque

The CRA encourages residents to update direct deposit details in their My CRA Account to avoid delays. Those opting for cheques should expect a longer wait.

Why the $500 Housing Benefit Matters

The program comes at a crucial time, as housing affordability is one of Canada’s biggest challenges in 2025. Reports show:

• Average rental prices in major cities like Toronto and Vancouver have risen by over 8% year-over-year.
• Mortgage renewals at higher interest rates have put financial stress on middle-income families.
• Household budgets are squeezed by rising utilities and food prices, leaving little left for rent or mortgages.

The $500 one-time support won’t solve the housing crisis, but it provides short-term relief for vulnerable households. It helps prevent missed rent, late mortgage payments, or increased reliance on credit and loans.

Impact on Low- and Middle-Income Families

For many households, this payment can:

• Cover part of a monthly rent bill
• Help pay down utility arrears
• Reduce reliance on payday loans or credit cards
• Provide relief during unexpected housing emergencies

The benefit also signals a broader government effort to stabilize housing affordability while working on long-term measures like affordable housing projects and rent control policies.

Government’s Broader Housing Strategy

The $500 payout is part of a larger federal housing affordability package that includes:

• Expansion of the Canada Housing Benefit (CHB) for renters
• New investments in affordable housing construction
• Support for first-time homebuyers
• Tighter regulations on short-term rentals

By combining short-term relief with long-term structural reforms, the government aims to address both immediate financial hardship and systemic housing shortages.

5 FAQs

Q1: Who qualifies for the $500 housing benefit in 2025?
Residents aged 18+, who are Canadian citizens or permanent residents, and meet income and housing cost criteria may qualify.

Q2: Do I need to apply for the benefit?
Yes, most applicants must apply through the CRA. However, those already receiving GST/HST or CCB may be automatically enrolled.

Q3: When will payments be issued?
Payments will be distributed in the last week of September 2025 via direct deposit or cheque.

Q4: Is the $500 housing benefit taxable?
No, the payment is non-taxable, meaning recipients will not owe taxes on it.

Q5: Can homeowners qualify for the benefit?
Yes, homeowners with mortgages may qualify if they meet the income and hardship criteria.