In response to escalating rental costs and the financial strain on low-income renters, the Canadian government has announced a significant housing relief initiative.
A one-time $1,200 Housing Benefit Top-Up is set to be disbursed starting October 15, 2025, aiming to provide immediate financial assistance to eligible renters across the country.
What Is the $1,200 Housing Benefit Top-Up?
The Canada Revenue Agency (CRA) is set to administer this non-taxable, one-time payment to qualifying renters.
The initiative is designed to alleviate the burden of rising rental expenses, offering a substantial boost to those most affected by the current housing affordability crisis.
Eligibility Criteria
To qualify for the $1,200 Housing Benefit Top-Up, applicants must meet the following conditions:
| Eligibility Requirement | Details |
|---|---|
| Residency | Must be a Canadian resident as of October 1, 2025. |
| Age | At least 15 years old at the time of application. |
| Income | Net income below $35,000 for singles or $55,000 for families. |
| Rent Contribution | Paid at least 30% of your income toward rent in the past six months. |
| Tax Filing | Filed a 2024 income tax return with the CRA. |
| Proof of Rent | Provide documentation such as lease agreements, rent receipts, or bank statements. |
The CRA will utilize existing tax data and automated income verification tools to assess eligibility. Applicants are encouraged to ensure their information is up-to-date in their CRA My Account.
Application Process
The application for the $1,200 Housing Benefit Top-Up is streamlined through the CRA My Account portal. The process is fully digital, ensuring efficiency and accessibility.
Steps to Apply:
- Log into CRA My Account: Access your account at CRA My Account.
- Navigate to the Housing Benefit Section: Locate the section dedicated to housing benefits.
- Confirm Personal and Income Details: Ensure your personal information and 2024 income details are accurate.
- Provide Proof of Rent: Upload necessary documents such as lease agreements or rent receipts.
- Submit Application: Review all information for accuracy and submit your application.
For individuals without internet access or those requiring assistance, phone support is available through the CRA’s call center.
Payment Schedule
Payments for the $1,200 Housing Benefit Top-Up will commence on October 15, 2025, with direct deposits prioritized for existing CRA recipients.
New applicants may experience a slight delay as their applications are processed.
Impact and Importance
This initiative is a crucial step in addressing the housing affordability challenges faced by low-income renters in Canada.
By providing immediate financial relief, the government aims to ease the burden of rising rental costs and support individuals and families in maintaining stable housing.
The $1,200 Housing Benefit Top-Up represents a significant federal effort to support low-income renters amid escalating housing costs.
By meeting the outlined eligibility criteria and following the application process, eligible Canadians can access this vital financial assistance.
For more detailed information and to apply, visit the CRA My Account.
Frequently Asked Questions
If your CRA records are up-to-date and you meet the eligibility criteria, you will receive the payment automatically.
However, if your information has changed or you’re a first-time applicant, you must apply through the CRA My Account portal.
No, the payment is non-taxable and will not affect your tax return or eligibility for other federal income-tested benefits.
Yes, the $1,200 Housing Benefit Top-Up is a federal initiative and is available to eligible residents across all provinces and territories.
However, provincial programs may have their own eligibility criteria and application processes.