The Canada Revenue Agency (CRA) is expected to administer a one-time $500 Canada Housing Benefit payment in February 2026 to support eligible low- and moderate-income renters facing high housing costs.

The payment is designed as temporary financial relief, not an ongoing monthly program. Eligible renters who meet income and residency requirements can expect the lump-sum amount to be deposited after application approval and eligibility verification.

The measure forms part of the federal government’s broader housing affordability strategy aimed at easing cost-of-living pressures.

What Is the $500 Canada Housing Benefit?

The February 2026 housing benefit is a single $500 payment intended to help renters manage:

• Monthly rent
• Utilities tied to rental housing
• Essential housing-related expenses

It is not a recurring benefit and does not replace other housing assistance programs.

Why the Government Is Offering This Payment

Rental prices in major Canadian cities remain elevated due to:

• Low vacancy rates
• Strong demand for rental housing
• Rising inflation and living costs

The $500 payment aims to:

• Reduce short-term financial pressure
• Support housing stability
• Assist renters dedicating a large share of income to rent

While modest, the benefit may help households manage immediate expenses.

Who Qualifies for the $500 Housing Benefit?

Eligibility is based on four key factors:

1. Income Requirements

Applicants must fall below established annual net income thresholds.

Eligibility generally targets:

• Single individuals with lower earnings
• Families with modest household income
• Renters whose housing costs represent a significant portion of income

Income is verified through recent tax returns.

2. Rental Status

To qualify, applicants must:

• Rent their primary residence in Canada
• Pay rent for housing located within Canada
• Provide proof of rental payments if requested

Homeowners are not eligible under this benefit.

3. Residency Requirement

Applicants must be Canadian residents for tax purposes during the eligibility period.

4. Tax Filing Compliance

Filing the most recent income tax return is mandatory. CRA uses tax data to verify income, family size and residency.

Failure to file may result in delays or ineligibility.

How to Apply in 2026

Applications are expected to be submitted online through official government portals.

Applicants may need to provide:

• Personal identification details
• Income information from recent tax returns
• Rental expense details
• Lease or rental agreement information
• Direct deposit banking details

Accurate information reduces processing delays.

Eligibility Screening Process

After submission, CRA will verify:

• Income eligibility
• Rental status
• Residency status

Additional documentation may be requested if discrepancies arise. Responding promptly helps avoid delays.

Incomplete or incorrect applications may slow approval.

February 2026 Payment Timeline

While exact dates depend on processing timelines, approved applicants can generally expect:

• Payment issuance during February 2026
• Direct deposit after eligibility confirmation
• Faster access if enrolled in direct deposit

Mailed cheques may take longer to arrive.

Important Rules to Understand

One-Time Structure

The $500 benefit is a single lump-sum payment. It does not continue monthly.

Interaction With Other Benefits

In most cases, the payment does not negatively affect federal benefits, but applicants should confirm details based on their specific situation.

Common Reasons for Delays

Payment timing may be affected by:

• Incorrect banking details
• Missing rental documentation
• Unfiled tax returns
• High application volumes

Double-checking application details is strongly recommended.

Practical Tips for Applicants

To improve approval chances:

• File your tax return before applying
• Keep lease agreements and rent receipts accessible
• Ensure direct deposit is active
• Monitor CRA online accounts for updates
• Respond quickly to document requests

Preparation can significantly reduce processing time.

Why the $500 Housing Benefit Matters

Many renters spend a substantial portion of their income on housing. When rent consumes too much of monthly income, households may struggle to manage other essential expenses.

Although $500 is not a long-term solution, it may help:

• Cover part of a month’s rent
• Offset rising utility costs
• Provide temporary financial breathing room

Targeted support helps focus assistance on households most affected by rental inflation.

Frequently Asked Questions

When will the $500 Housing Benefit be paid?

Approved applicants can expect payment issuance during February 2026.

Who qualifies for the $500 payment?

Low- and moderate-income renters who meet income, residency and tax filing requirements.

Do homeowners qualify?

No. The benefit is specifically for renters.

Is the payment automatic?

Applicants typically need to apply through official government channels.

Does filing taxes matter?

Yes. Tax returns are required to verify income eligibility.

Will this affect other benefits?

In most cases, it does not negatively impact other federal benefits.