In 2025, the Canadian government is rolling out financial assistance for vulnerable groups through two one-time payments: one for low-income renters and another for seniors aged 75 and older.
These payments aim to ease the strain caused by rising living costs and affordability challenges, particularly in housing and for seniors on fixed retirement incomes. Let’s break down who qualifies, how to apply, and when you can expect to receive these funds.
Overview of $500 One-Time Payments in Canada
| Program | Eligibility Criteria | Payment Amount | Application Required | Payment Method |
|---|---|---|---|---|
| Canada Housing Benefit Top-Up | Renters: Individuals ≤ $20,000; Families ≤ $35,000 income | $500 (tax-free) | Yes | Direct deposit or cheque |
| One-Time Payment for Seniors | Seniors aged 75+ (born before June 30, 1947) receiving OAS | $500 (taxable) | No | Direct deposit or cheque |
These one-time payments offer essential financial relief to two key groups—low-income renters and seniors aged 75 and older.
While not permanent, these initiatives serve as a crucial temporary solution during a period of escalating affordability concerns.
If you meet the eligibility criteria, it’s important to take action early. This includes filing your tax returns, updating your CRA account, or confirming your OAS enrollment to expedite receiving your payment.
Program 1: Canada Housing Benefit Top-Up
What Is It?
The Canada Housing Benefit Top-Up provides federal assistance to low-income renters, aimed at alleviating the burden of housing costs that continue to rise across both urban and rural regions.
Introduced in late 2022 and extended through 2025, this payment is a key effort to reduce the financial strain caused by increasing rents, particularly in areas where rental prices are rising faster than wages.
Eligibility for the Housing Benefit Top-Up
To qualify for the $500 payment, the following conditions apply:
- Income Requirements:
- Individuals: Net income must be $20,000 or less.
- Families: Net income must be $35,000 or less.
- Rent Requirement: You must have paid at least 30% of your net income in rent during the 2022 tax year.
- Residency: You must be a Canadian resident and renting a primary residence in Canada.
Tip: Your eligibility is determined based on your 2022 tax return, so ensure your taxes are filed to assess qualification.
How to Apply
Applications for the Canada Housing Benefit top-up must be submitted via the Canada Revenue Agency (CRA). You can apply using:
- CRA My Account portal
- CRA’s automated phone line
Supporting documents such as rental receipts or a landlord letter may be required. The application window is open for 120 days after the program relaunch, so it’s essential to apply promptly.
When Will You Receive Your Payment?
Once approved, eligible individuals can expect their $500 payment within 5 to 10 business days via direct deposit or cheque, depending on the method used for past tax refunds.
Program 2: $500 One-Time Payment for Seniors Aged 75+
Seniors aged 75+ who are receiving Old Age Security (OAS) benefits are eligible for a $500 one-time payment. This payment is designed to help seniors cope with increasing living costs, including healthcare, housing, and daily essentials.
The first phase was disbursed in 2021, with an additional payment expected in mid-to-late 2025 as part of the federal aging strategy.
Eligibility for Seniors Aged 75+
- Age Requirement: Must be born on or before June 30, 1947 (i.e., at least 75 years old in 2025).
- OAS Enrollment: Must be receiving the OAS pension.
- No Application Necessary: Eligibility is determined automatically based on your OAS status.
You will be notified via mail or in your My CRA Account if you qualify.
Payment Details
- Amount: $500 (taxable income)
- Payment Method: The payment will be delivered using the same method as your OAS payments—either cheque or direct deposit.
- Expected Payment Timeline: Payments are expected to begin by August 2025, following final budget approval.
Why These Payments Matter
In 2023, rents increased by over 6% nationwide, with some cities like Vancouver and Toronto experiencing double-digit rent hikes. Seniors on fixed incomes are also facing rising healthcare and utility costs.
These one-time payments serve as essential stopgap measures while the government works on more sustainable affordability solutions.
“These are not permanent fixes,” says financial analyst Carla Dionne, “but they are critical to preventing those at risk from falling through the cracks.”
How to Apply for the Housing Benefit Payment
- Log in to CRA My Account: Visit your CRA My Account.
- Navigate to Benefits and Credits: Look for the One-Time Housing Top-Up section.
- Review Eligibility: Ensure your 2022 income and tax status are up-to-date.
- Submit Your Application: Enter rental expenses and upload supporting documents.
- Confirmation: CRA will provide a confirmation and update on the processing time.
If you are unable to apply online, you can call the CRA at 1-800-282-8079 for assistance.
Is the $500 Payment Taxable?
- Housing Benefit Top-Up: This payment is tax-free and will not affect any other benefits you receive.
- Senior Payment: This payment is taxable and will be reported as income on your T4A(OAS).
Protect Yourself from Scams
Scams often target individuals applying for financial benefits. The CRA and Service Canada will never ask for personal banking details via email or text message. Be cautious of:
- Fake links requesting “payment verification”
- Calls pretending to be from the CRA or OAS
- Requests for e-transfers or prepaid gift cards
Always verify communications on the official CRA website or call 1-800-959-8281.
The $500 one-time payments in Canada provide critical support to low-income renters and seniors facing increased costs. While these payments are temporary, they offer essential relief in an environment of rising living expenses.
Be sure to apply for the housing benefit top-up if eligible, and seniors can expect their OAS-related payments to arrive in mid-2025. Keep up with the application process and protect yourself from potential scams to ensure you receive your rightful payments.
FAQs
What is the deadline to apply for the Canada Housing Benefit top-up?
You have 120 days from the program’s relaunch date to apply.
How will the $500 for seniors be delivered?
The payment will be issued via direct deposit or cheque, just like your OAS payments.
Is the $500 senior payment taxable?
Yes, the senior payment is taxable and will be included in your T4A(OAS).