Need Help with Rent? 15 Government Programs for Rent Assistance

With the rising cost of living, it’s getting harder and harder for Canadians to keep up with basic living expenses such as food, shelter, utilities, and more. For those who rent their homes, rent assistance programs can be an invaluable means of making ends meet while dealing with other financial challenges.

From 2011 to 2021, the number of households that rent their home grew by 21% compared to the 8% growth in home ownership over the same period.

Though more Canadians own their home vs rent them , the gap is starting to close. If you’re one of the many Canadians who rents rather than owns, or are considering renting, please read on!

What’s the Cost to Rent a Home in Canada?

The cost of renting a home has increased to the highest it’s ever been—the average cost of rent surpassed $2,200 for the first time in 2024, with the average rent in July sitting  at $2,201, up 27.6% from July 2021. , outpacing the rate of inflation during that same time period.

Let’s compare this to the cost of the average mortgage in Canada which was $2,143 in Q4 2023 and varies significantly by region. The province with the highest average monthly mortgage payments in Canada is British Columbia (at $2,913 in Q4 2023) and the province with the lowest average mortgage payment is Quebec (at $1,338 in Q4 2023). 

This calculation also doesn’t take into account factors like:

• Property taxes
• Upfront costs for the home (down payment, legal paperwork, etc.)
• Building maintenance
• Utilities (some rentals may or may not include utilities in the cost of rent -be sure to check your rental agreement)
• Property insurance
• Risk of housing “bubbles” bursting and diminishing your equity or putting you “upside down” on your mortgage (e.g., owing more on your home than it’s worth on the market)
• Flexibility in moving (it’s easier to cancel a rental and move out than it is to resell your home and move into a new one)

When assessing whether to rent or buy your home, it’s important to consider the benefits of renting and compare them to the benefits of home ownership.

The cost of owning a home versus renting

¹ Varies according to property value, province, and city

² Varies according to contract

³ Varies according to property value and deductibles

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Rent Assistance Programs You May Be Eligible For

So, you are either currently renting a home in Canada or plan to start renting soon, but you think that you might have trouble managing debt while paying rent (or are already struggling). What can you do?

One option is to start looking into rent assistance programs offered by various government agencies. Some benefits are strictly for renters, others might apply equally to all Canadians, whether you rent or own. To help you get a head start, here are a few benefits you can use as rent assistance, or to cover other expenses so you can afford your rent more easily:

1. The Canada Housing Benefit

The Canada Revenue Agency (CRA) administers the Canada Housing Benefit to help low-income renters keep up with the cost of living. In late 2022, the CRA added a one-time “top up” payment of $500 to the housing benefit, however, applications for this top up are now closed. In February 2024, the federal government announced $99 million national top-up to the Canada Housing Benefit.  

This additional funding raises the federal government’s contribution through the Canada Housing Benefit to $325 million, which will be distributed to low-income renters via provincial rent support programs. Each province has its own version of the benefit with different income and application requirements which are listed below.

2. The Canada-Ontario Housing Benefit

The Canada-Ontario Housing Benefit is a rent assistance benefit for people living in Ontario. You are able to receive the benefit if you are part of an “eligibilty priority group” that qualifies for or is already on the Centralized Waiting List for Rent-Geared-to-Income (RGI) subsidy. RGI is typically 30% of your household's monthly Adjusted Family Net Income (AFNI).

However, keep in mind that the waiting list is long, and there are more people applying for subsidized housing than there are units available. If you need help right away, it’s a good idea to apply for other benefits while waiting for this one.

3. Canada-BC Housing Benefit

The Canada-BC Housing Benefit is for those spending more than 30% of their income on rent, and an income between $31,922 to $44,400, based on household size. Some individuals may be given priority, such as people with disabilities or mental health issues, Indigenous peoples, or those at risk of homelessness. This benefit replaces subsidized housing. 

You need to be invited to apply for this benefit by a non-profit housing provider, or directly by the BC Housing registry.

4. The Rent Assistance Program (Alberta)

Those living in Alberta can apply for rent assistance under the Canada-Alberta Housing Benefit:

The Rent Assistance Benefit

This is a long-term benefit paid directly to tenants available through most housing management bodies in Alberta. This benefit is calculated based on household income and local market rent and is reviewed annually to determine eligibility—though there’s no limit to renewals.

The Temporary Rent Assistance Benefit

This is a short-term variant of the benefit meant to help those with low income or who are between jobs so they can afford their rent while they stabilize their finances. Availability is limited to households in Calgary, Edmonton, Fort McMurray, Grande Prairie, Lethbridge, Medicine Hat and Red Deer (plus some surrounding communities). Unlike the other benefits, there’s a 2-year limit to this program. Also, if you’re already receiving assistance from other benefits like income support or the guaranteed income supplement, then you may not be eligible for the temporary rent assistance benefit.

5. Quebec Shelter Allowance Program

The Quebec Shelter Allowance Program is set up similarly to the Canada-BC Housing Benefit for those spending more than 30% of their income on rent, and an income between $24,440 and $46,640. Single individuals under 50 with no dependants are not eligible for this benefit. 

6. Canada-Manitoba Housing Benefit

The Canada-Manitoba Housing Benefit helps eligible renters pay for core housing costs. It provides assistance to the following vulnerable populations:

• Youth currently transitioning or those who have transitioned out of the child welfare system up to the age of 26.
• Homeless people or those at risk of homelessness.
• Those with mental health or addiction issues residing in designated supportive housing buildings.
• People who have left a gender-based violence relationship and are currently living in an approved shelter.

7. Saskatchewan Housing Benefit

The Saskatchewan Housing Benefit is a monthly benefit to help renters pay for shelter and utility costs. You are eligible for this benefit if:

• More than 35% of your income goes toward housing costs.
• You have less than $300,000 in household assets.
• Your income is between $43,100 and $63,800 depending on household size.

8. Canada-Nova Scotia Targeted Housing Benefit

The Canada-Nova Scotia Targeted Housing Benefit is split into two streams: one for homeowners and one for renters. Renters who spend more than 50% of their before-tax household income on the average rent in their area are eligible. If you are offered public housing, you’ll need to choose one or the other.

9. Canada-New Brunswick Housing Benefit

The Canada-New Brunswick Housing Benefit is specifically created for low-income individuals renting their homes, to address the increased expenses those living alone incur. You are eligible for this benefit if:

• You live alone
• You are under the age of 65
• You aren’t receiving any other NB housing benefits
• Your income is between $12,500 and $50,000

10. Canada-Yukon Housing Rental Benefit

The Canada-Yukon Housing Rental Benefit helps those who have a low to moderate income get help with paying their rent. You must have less than $100,000 in household assets and an income between $64,240 and $125,790 depending on household size.

11. Canada/Nunavut Housing Benefit

The Canada/Nunavut Housing Housing Benefit is created to support:

• Individuals and families in crisis.
• Individuals wanting to leave a shelter.
• Youth transitioning out of care.

To be eligible, individuals must be paying more than 24% of their income on housing. The program will finance the difference between their rent and the market rent until a more permanent housing solution is found. 

There is no application process. Clients must be referred by the program’s partners, including social workers, income assistance staff, shelters, and the Nunavut Housing Corporation.

12. Canada-NWT Housing Benefit (CNHB) 

The Canada-NWT Housing Benefit (CNHB) helps with rental costs for households paying more than 30% of their gross income on rent. Eligible recipients must have lived in NWT for 12 months and have an income lower than the Core Need Income Threshhold (CNIT) for their community. The benefit is non-taxable, and must be reported to the CRA each year to be counted toward the total household income. 

13. Employment Insurance Sickness Benefits

Say you’ve recently suffered a temporary loss of ability to work because of illness. If so, you could qualify for Employment Insurance (EI) sickness benefits and use that income to cover basic costs like rent or food while you’re recovering.

Note that this is a benefit for those not already receiving paid sick leave or temporary disability plan benefits through their employer. The Government of Canada recommends checking if your employer has such a plan in place before applying for EI sickness benefits.

The benefit is for 55% of your normal earnings up to a cap of $668  a week. So, it won’t completely replace your normal income—especially if your salary is on the higher end.

Applicants filing for EI sickness benefit claims after December 18, 2022 are eligible for up to 26 weeks of this benefit.

14. Guaranteed Income Supplement

If you’re a Canadian resident over the age of 65, are already receiving the Old Age Security (OAS) pension, and your income is below the maximum annual income threshold for this program, then filing for the Guaranteed Income Supplement (GIS) may help you cover basic living expenses like rent.

Typically the Government of Canada will send you a letter letting you know when you will start receiving the GIS benefit a month after you reach the age of 65. However, if the government doesn’t have enough information to enroll you automatically, you may need to apply for GIS manually.

The amount of the benefit may vary depending on factors such as your:

• Current income
• Marital status
• Whether you’re a widow/widower who hasn’t remarried/entered a common-law relationship

These are just a few of the rent assistance and other income benefits that you could potentially use to help pay your rent. There are many other programs that you could use that may be specific to where you live, your income level, or other qualifying factors.

15. Municipal Rent Assistance Programs

In addition to federal and provincial rent assistance programs, there are also municipal programs you can apply to, depending on which city you live in. Here are a few notable examples:

• Toronto Rent Bank. 
• Vancouver Rent Bank
• Calgary Housing Company (CHC) Rent Assistance.

Find Out Which Benefits You Are Eligible For

There are a number of benefits available for Canadians that can provide rent assistance as well as other financial assistance. Prosper Canada’s Benefits Wayfinder can help you find out which benefits you are eligible for in your province. The tool will ask you a few questions and, based on your answers, will provide you with a list of benefits you may qualify for. 

Need Help Managing Your Debt While Paying Rent?

What can you do if you’re struggling with a significant amount of debt that makes paying rent difficult? If you’re having a hard time making rent payments because you’re managing large debts, then you might want to investigate your debt management options.

For example, you could look into financial coaching for advice, file for insolvency with a Licensed Insolvency Trustee (LIT), or apply for a debt consolidation program (DCP) to help you manage or even get rid of your outstanding debt.

You could also take a look at some free online debt management tools like our debt calculator or budget calculator to help you assess your current expenses and income to create a budget that works for your income.

Need help managing your debt right now? Reach out and speak to one of our Credit Counsellors for assistance. They are standing by to help you get out of debt so you can get back to living your life instead of living in fear of collection calls. Our credit counselling is confidential, non-judgemental and free.