Yahoo Finance Applications for Ottawa's one-time housing rental benefit top-up now open
Applications are now open for low-income renters to receive the federal government's one-time top-up to the Canada Housing Benefit.
The $500 tax-free payment aims to provide financial relief to lower-earning Canadians who are grappling with sky-high rental prices and the surging cost of living.
Those who are eligible to apply must have a family income of $35,000 or less, or $20,000 for individuals, as of 2021 and prove their rent ate up at least 30 per cent of their income. To apply, renters must also have filed their income taxes for 2021.
Roughly 1.8 million Canadians, including students, are expected to be eligible for the top-up, according to government estimates.
According to the CRA website, applications can be made through an individual's CRA or Service Canada account, via phone or through an online form.
Payments are expected to take five days for direct deposit or 10 days for a mailed cheque. The payment will not impact any other federal benefits received by the individual or family.
The federal government first announced the top-up in September as part of its inflation relief plan to help Canadians struggling to make ends meet. In addition to the top-up, the plan includes a temporary increase to the GST credit.
At the time, the plan was criticized by economists for likely putting additional upward pressure on inflation.
Demand for rental housing has surged in Canada, partly as higher borrowing costs sideline some would-be homebuyers for longer.
Monthly rent in Canada across all property types jumped nearly 12 per cent or $209 in November from October to an average of $1,976, according to rental website Rentals.ca.
However, rents were closer to $2,500 per month for a one-bedroom unit in Canada's biggest cities. Two-bedroom units went for more than $3,000 per month in urban centres, the data showed.
Renters have until March 31, 2023 to apply for the top-up.
Michelle Zadikian is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @m_zadikian.
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