What you need to know about the new Canada Housing Benefit program

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UPATE: Applications are now open for the $500 Canada one-time housing payment. You can apply here and to be eligible you’ll need to meet the following criteria:

Canadians must meet all the following conditions to be eligible for the new benefit:

• have filed a 2021 tax return;
• be at least 15 years of age as of December 1, 2022;
• be a resident in Canada in 2022 for tax purposes;
• have an adjusted family net income of $20,000 or less for individuals, or $35,000 or less for families;
• have paid at least 30% of their 2021 adjusted family net income on rent for their principal residence in the 2022 calendar year; and
• be able to provide their 2022 address(es) and landlord’s contact information.

Prime Minister Justin Trudeau recently announced a new housing benefit program payment aimed at helping low income Canadian renters deal with the effects of rising inflation in the rental market.

What is the new Canada Housing Benefit Program

The new program was developed to give a one-time payment of $500 to low income Canadian renters to help fight rising inflation.

The one-time $500 payment program would be launched by the end of the year pending Parliamentary approval.

Who is eligible for the Canada Housing Benefit?

The housing benefit will be eligible for Canadian renters with income below $35,000 or $20,000 for those individuals who are single. Additional eligibility criteria is outlined below.

How can I apply for the Canada Housing Benefit Program?

Individuals that would like to apply for the program will have to attest to the following facts and provide the following information

• They are currently renting a property in Canada and will be required to provide the address for the rental unit, the amount of rent they paid in 2022 and the name and address of the landlord
• The need to attest that they are paying rent in an amount that is at least 30% of their net income
• Allow for the government to verify income and additional information through CRA’s records

Where can I get more information about the new program?

As new information becomes available it will be added to this FAQ, so please visit again for further updates.

Conclusion

It is estimated that around 1.8 million renters could take advantage of this new rental housing subsidy in 2022 and 2023. The cost of this initiative is expected to cost over $450 million dollars.

The government has confirmed that this one-time payment will not affect or reduce additional social benefits such as the Canada child tax benefit, the Canada workers benefit the GST credit or the GIS.

Make sure to check back here soon for more updates on the new Housing Benefits Program.