$500 One-Time Payment in Canada: If you’re living in Canada and wondering if you’re eligible for a $500 one-time payment in 2025, you’re not alone. The Canadian government has announced financial support through two specific programs, each designed to help vulnerable populations facing higher living costs. These include a top-up to the Canada Housing Benefit for low-income renters and a $500 payment for seniors aged 75 and above.
Both payments are part of a broader effort to help Canadians navigate affordability challenges—especially when it comes to housing and fixed retirement incomes. Let’s explore everything you need to know: who qualifies, how to apply, and when you can expect to receive the funds.
$500 One-Time Payment 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 |
The $500 one-time payments in Canada for 2025 aim to reduce financial strain for two groups: low-income renters and older seniors. While these aren’t permanent programs, they offer vital relief at a time when affordability remains a national concern.
If you think you might be eligible, take action now. Whether it’s filing your taxes, updating your CRA account, or confirming your OAS enrollment, the sooner you get organized, the sooner you’ll receive your payment.
Program 1: Canada Housing Benefit Top-Up
What Is It?
The Canada Housing Benefit one-time top-up is a federal payment offered to low-income renters to help manage growing housing costs in urban and rural communities. Introduced in late 2022 and extended through 2025 for certain applicants, the payment is meant to reduce the financial strain of rent, particularly as prices rise faster than wages in many areas.
Who Is Eligible?
To qualify for the $500 payment:
- Income Requirements:
- Individuals: Net income must be $20,000 or less.
- Families: Net income must be $35,000 or less.
- Rent Threshold: You must have paid at least 30% of your net income in rent during 2022.
- Residency: Must be a Canadian resident and renting a principal residence in Canada.
Tip: Income is based on your 2022 tax return, so make sure it’s filed to determine eligibility.
How to Apply
Applicants must apply directly through the Canada Revenue Agency (CRA) using:
- CRA My Account portal
- CRA’s automated phone line
Supporting documents such as rental receipts or a letter from your landlord may be required. The application period remains open for 120 days from the program’s relaunch date, so check your eligibility and apply promptly.
When Will You Get the Money?
If eligible, you can expect the $500 to be disbursed within 5 to 10 business days after approval, either through direct deposit or cheque, depending on how you receive tax refunds.
Program 2: $500 One-Time Payment for Seniors Aged 75+
Overview
Seniors who are 75 years or older and receiving the Old Age Security (OAS) pension were issued a $500 one-time payment to support rising costs linked to health, housing, and daily essentials. While the first phase was disbursed in 2021, an additional payment is being re-evaluated for rollout in mid to late 2025 as part of the federal aging strategy.
Who Qualifies?
- Must be born on or before June 30, 1947 (i.e., at least 75 years old in 2025)
- Must be receiving the OAS pension
- No application is necessary; eligibility is determined automatically
You will receive a notification by mail or in your My CRA Account if you’re included.
Payment Details
- Amount: $500 (taxable income)
- Delivery Method: Same method as your OAS—either cheque or direct deposit
- Issuance Timeline: Payments are expected to begin by August 2025, based on budget finalization
Why These Payments Matter
According to Statistics Canada, rent prices rose by over 6% nationally in 2023, with some cities like Vancouver and Toronto seeing double-digit increases. Meanwhile, Canadian seniors on fixed incomes are facing higher prescription drug costs and increased utility bills. These one-time payments are designed to offer temporary relief as more comprehensive affordability measures are developed.
“These are not permanent solutions,” says financial analyst Carla Dionne. “But they are crucial stopgaps for people who are at risk of falling through the cracks.”
Apply for the Housing Benefit Payment
- Log in to CRA My Account: Visit My CRA Account
- Navigate to Benefits and Credits: Look for the One-Time Housing Top-Up section.
- Review Eligibility: Your 2022 income and tax status must be up-to-date.
- Submit Your Application: Enter rental expenses and supporting documents.
- Confirmation: CRA will provide a confirmation and update you on the processing time.
- If you cannot apply online, you may call the CRA at 1-800-282-8079 for assistance.
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Is the $500 Taxable?
- Housing Benefit Top-Up: No, it’s completely tax-free and will not affect any other benefits.
- Senior Payment: Yes, it is considered taxable income and will be included in your T4A(OAS).
Protect Yourself from Scams
Whenever money is involved, scams are not far behind. CRA and Service Canada will never text or email you to request personal banking details. Beware of:
- Fake links asking for “payment verification”
- Phone calls pretending to be from CRA or OAS
- Requests for e-transfer or prepaid gift cards
- Always verify on the official CRA website or call 1-800-959-8281.
FAQs On $500 One-Time Payment in Canada
Q1: Can I receive both the housing top-up and the senior payment?
A: Yes, if you meet the criteria for both, you can receive both $500 payments.
Q2: Is there a deadline to apply for the housing top-up?
A: Yes, the deadline is 120 days after the program reopens, so act promptly.
Q3: Will receiving the $500 affect my GST/HST credits or other benefits?
A: No, the housing top-up is non-taxable and will not interfere with other benefits.
Q4: I am 75 but not receiving OAS. Do I qualify?
A: No, you must be an OAS recipient to receive the senior payment.
Q5: Can I appeal if my application for the housing top-up is denied?
A: Yes, you can contact CRA’s General Enquiries line for a review or reassessment.
