Worried About Housing Costs? Here's How to Get Help

Worried About Housing Costs? Here’s How to Get Help

Talk to your lender or landlord about payment issues sooner than later — even though it may be hard. And apply for government programs that provide support when money is tight.

Struggling to buy a home, pay rent or afford your mortgage is nothing to be ashamed of.

Forty-one percent of Canadians say housing affordability and accessibility are among their top three financial concerns, according to 2024 survey by Abacus Data.

Additionally, over half of Canadians (58%) are worried about their ability to afford their mortgage or rent, up six points since September 2023, according to the survey, which was conducted in partnership with several real estate and housing advocacy groups.

These programs can help you find and keep stable housing — even during during times of financial hardship.

1. Provincial housing benefit programs

Funded jointly by federal and provincial/territorial governments, these programs typically help low-income renters who live in privately-owned properties. The amount of assistance available depends on household income, rental costs, and how much funding the program has available. Some examples include:

2. Rental assistance programs

Administered through provincial housing agencies, these vital programs provide monthly cash support to working families who are struggling with rent payments.

Check with your provincial housing agency to see what rent assistance and other housing benefits they offer, as there are maximum rent and income ceilings.

In British Columbia, for instance, you might be eligible for BC Housing’s RAP if your household income is $40,000 or less, and you have at least one dependent child.

🤓 Nerdy Tip: Here’s a list of provincial affordable housing programs, including rent assistance, from the Canadian Housing and Mortgage Corporation.

3. EI Sickness Benefits

If you can’t work due to illness or injury, you may experience a loss of income that affects your ability to pay rent or your mortgage. In these circumstances, employment insurance offers relief.

National employment insurance (EI) benefits can provide up to 26 weeks of financial aid if you can’t work for health-related reasons. EI benefits pay 55% of your earnings up to a maximum benefit of $695 per week. You must meet eligibility requirements, and may have to provide medical documentation from a doctor.

4. Local home buying assistance programs

First-time home buyers who are short on cash might qualify for provincial and municipal assistance programs that provide no-interest, down payment loans that you may not have to repay.

In Ontario, for instance, if you buy a home in the region of Waterloo, you might qualify for a forgivable down payment loan of up to 5% of the first $500,000 of a home’s purchase price, and 10% for amounts between $500,000 and $600,000.

These programs often have income limits and rules about how long you have to live in the home to avoid repayment.

5. First Home Savings Account

Saving for the steep costs of buying or building a home is a tall order, but an FHSA can speed things up a bit.

“It’s a new savings account that basically offers tax-deductible contributions — like an RRSP, but tax-free with withdrawals,” says Cory Knott, a mortgage broker with Mortgage Architects in Mississauga, Ontario. Knott is also a financial planner with Ocean 6 Wealth Advisors.

You can contribute up to $8,000 each year to your FHSA, up to $40,000 total.

When it comes to saving a down payment, every extra dollar counts. An FHSA is something that can help renters boost their savings if they’re struggling to afford homeownership, Knott says.

6. Home Buyers’ Plan

With the HBP, you can withdraw up to $60,000 from your RRSPs to build or buy a home for yourself or a disabled person. Plus, you can combine the HBP and a withdrawal from your FHSA for the same qualifying home.

Unlike the FHSA, you must repay funds withdrawn from your RRSPs. You’ll generally have 15 years to do so.

Nervous about losing your home? Here’s what to do.

Talk to your landlord or lender. If you’re struggling to pay rent or might miss your monthly mortgage payment, communication is key to avoid bigger issues like eviction or foreclosure, Knott says. “A lot of times, they’ll have options to skip or defer a payment just to help you get back on your feet, so it’s always good to reach out to your lender,” says Knott. “You can also push out your amortization. Look at restructuring — how your mortgage is set up for re-amortizing — just to give you a little bit more wiggle room.”
Check with your provincial or territorial housing authority. See what help is offered where you live and what you might qualify for. You can also use the federal government’s benefits finder tool to find assistance programs.
Check your city’s website for programs that help with utility bills and other housing-related costs.