If you’re planning to renovate your home for a loved one or live with a disability yourself, June 2025 brings major financial support your way.
Two new federal programs—the $7,500 Multigenerational Home Renovation Tax Credit (MHRTC) and the monthly $200 Canada Disability Benefit (CDB)—can make home upgrades and daily living more affordable.
Whether you’re a homeowner, family caregiver, or someone approved for the Disability Tax Credit (DTC), this guide walks you through who qualifies, how to apply, and how to make the most of your refund.
Table of Contents
Programs
Let’s start with a simple breakdown of both programs:
| Program | Target Group | Amount | How to Claim |
|---|---|---|---|
| MHRTC | Homeowners adding a suite for seniors or DTC adults | Up to $7,500 (15% of $50,000) | File with 2025 tax return, Schedule 12 |
| CDB | Canadians aged 18–64 with DTC | Up to $200/month ($2,400/year) | Apply June 20–Dec 31 via CRA My Account |
Together, they help families build multigenerational living spaces while providing stable income for those with disabilities.
Why
Multigenerational living is on the rise—and with good reason. It cuts housing costs, offers in-home care, and strengthens family bonds. The MHRTC supports home modifications, and the CDB helps with day-to-day expenses. These benefits are designed to reduce stress and promote inclusive living.
MHRTC
The Multigenerational Home Renovation Tax Credit gives homeowners a refundable credit of up to $7,500 when they build or renovate a secondary suite for an eligible family member.
Who qualifies?
- You must own and live in the home
- Renovations must happen in 2025
- The new suite must be for:
- A senior aged 65+
- An adult approved for the Disability Tax Credit
Suite must include:
- A private entrance
- Kitchen
- Bathroom
- Bedroom
- Must meet local building codes and zoning
Claim process:
- Keep receipts, permits, and before/after photos
- Complete Schedule 12 with your 2025 tax return
- Claim on line 45355
Only one claim is allowed per eligible person per lifetime.
CDB
The Canada Disability Benefit provides up to $200 per month for adults aged 18 to 64 who are approved under the DTC.
Key dates:
- Apply: June 20 to December 31, 2025
- First payments: Start in July for those approved by June 30
- Retroactive: Up to 24 months back, even for those now over 65
Income-tested reductions:
- First $23,000 exempt (single), $32,500 (couples)
- Working income: First $10,000 (single) or $14,000 (couples) excluded
Example:
Dan, a DTC-approved single adult earning $35,000:
- Subtract $10,000 working income = $25,000
- Subtract $23,000 exempt = $2,000
- Reduction = $400 (20% of $2,000)
- Final benefit = $2,000 per year or ~$166/month
Application
- Download and submit Form T2201
- Have your doctor complete it
- Submit via mail or CRA My Account
Plan your renovation
- Get quotes from contractors
- Budget for permits, inspections, and contingencies
- Financing: HELOC, loans, or provincial programs
Secure permits
- Apply with your city
- Meet accessibility codes (e.g., ramps, grab bars)
Track expenses
- Save every receipt, permit, and invoice
- Use a spreadsheet or budgeting app
File your taxes
- Schedule 12 for MHRTC
- Apply for CDB once you get your CRA application code
Get your payments
- MHRTC refunds arrive in early 2026
- CDB is paid monthly, starting July 2025
Tips
- Budget realistically—add 10–15% for surprises
- Look into provincial credits that stack:
- BC: Up to $1,000 renovation credit
- Ontario: Accessibility and transit tax supports
- Quebec: Adaptation grants
- Use a tax pro to combine MHRTC with HATC, Medical Expense Credit, or Caregiver Credit
Example
The Patels in Ottawa converted their garage in 2025 to house Anjali’s 70-year-old mother. They spent $48,000, claimed $7,200 under MHRTC and another $1,500 with the HATC. Their son, who is DTC-approved, also received $200/month starting in July.
By year-end, the family received $8,700 in tax credits and monthly disability support, turning a big project into an affordable upgrade.
FAQs
Who can claim the $7,500 MHRTC?
Homeowners building suites for seniors or DTC adults.
When does the Canada Disability Benefit start?
First payments go out in July 2025.
How much is the Canada Disability Benefit?
Up to $200 per month, income-tested.
Can I combine MHRTC with other credits?
Yes, including HATC and provincial programs.
How do I apply for the CDB?
Use CRA My Account or go to Service Canada.
