$7500 Renovation Refund and Monthly Disability Payments, Two Major Federal Benefits in 2025

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.

Programs Overview

The government has introduced two complementary programs designed to strengthen families and improve affordability:

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 approval	Up to \$200/month (\$2,400/year)	Apply June 20–Dec 31, 2025 via CRA My Account

Together, these programs ease the cost of building multigenerational housing and provide stable income for those with disabilities.

Why These Supports Matter in 2025

Housing costs and caregiving responsibilities are rising. More families are turning to multigenerational living as a solution, where seniors, caregivers, and children share the same home.

• MHRTC helps families create accessible, safe, and legal living spaces.
• CDB provides a monthly financial boost for adults with disabilities to cover day-to-day needs.

Both measures aim to reduce stress, promote inclusion, and keep families together.

Multigenerational Home Renovation Tax Credit (MHRTC)

The MHRTC provides a refundable tax credit worth up to \$7,500 when homeowners build or renovate a secondary suite for an eligible family member.

Who Qualifies?

To claim MHRTC, you must:

• Own and live in the home.
• Complete renovations in 2025.
• Build a suite for either:
• A senior aged 65+, or
• An adult with a Disability Tax Credit (DTC) certificate.

Requirements for the Suite

The suite must:

• Have a private entrance.
• Include a kitchen, bathroom, and bedroom.
• Meet all local building codes and zoning laws.

Claim Process

• Save receipts, permits, and before/after photos.
• File Schedule 12 with your 2025 tax return.
• Claim on line 45355.
• Note: Only one MHRTC claim is allowed per eligible person, per lifetime.

Canada Disability Benefit (CDB)

The CDB offers up to \$200 per month to Canadians aged 18–64 who qualify under the Disability Tax Credit (DTC).

Key Dates for 2025

• Apply: June 20 – December 31, 2025.
• First Payments: Start July 2025 (for those approved by June 30).
• Retroactive Payments: Up to 24 months back, even for those who are now over 65.

Income Reductions

The benefit is income-tested:

• First \$23,000 exempt for singles, \$32,500 for couples.
• First \$10,000 (singles) or \$14,000 (couples) in working income is excluded.

Example:
Dan, a DTC-approved single adult earning \$35,000:

• Subtract \$10,000 working income = \$25,000.
• Subtract \$23,000 exemption = \$2,000.
• Reduction = \$400 (20% of \$2,000).
• Final benefit = \$2,000/year (~\$166/month).

How to Apply for MHRTC and CDB

Step 1: Secure DTC Approval

• Download and submit Form T2201.
• Have your doctor complete medical certification.
• Submit via mail or CRA My Account.

Step 2: Plan Your Renovation (MHRTC)

• Get quotes from licensed contractors.
• Budget for permits, inspections, and unexpected costs.
• Explore financing (HELOC, loans, provincial supports).

Step 3: Obtain Permits

• Apply with your local municipality.
• Ensure compliance with accessibility standards (e.g., ramps, grab bars).

Step 4: Track All Expenses

• Keep every receipt, permit, and invoice.
• Use a spreadsheet or budgeting app for organization.

Step 5: File and Claim

• For MHRTC: Submit Schedule 12 with your 2025 return.
• For CDB: Apply through CRA’s My Account once approved for DTC.

Step 6: Receive Payments

• MHRTC refunds are issued in early 2026.
• CDB begins monthly deposits starting July 2025.

Tips to Maximize Benefits

• Budget realistically and add 10–15% for unexpected expenses.
• Check for provincial credits that stack with federal programs:
• BC: Up to \$1,000 renovation credit.
• Ontario: Accessibility and transit tax supports.
• Quebec: Adaptation grants.
• Use a tax professional to combine MHRTC with:
• Home Accessibility Tax Credit (HATC)
• Medical Expense Credit
• Caregiver Credit

Example: The Patel Family in Ottawa

In 2025, the Patels converted their garage into a living space for Anjali’s 70-year-old mother.

• Cost: \$48,000.
• MHRTC: \$7,200 refund.
• HATC: Additional \$1,500.
• CDB: Their son (DTC-approved) received \$200/month starting July.

By year-end, the family received \$8,700 in tax credits and disability support, making a major renovation project affordable.

FAQs

Q1. What is the MHRTC and how much is it worth?
A: The Multigenerational Home Renovation Tax Credit (MHRTC) offers up to \$7,500 for homeowners who build or renovate a suite for a senior or DTC-approved adult.

Q2. Who qualifies for the Canada Disability Benefit (CDB)?
A: Canadians aged 18–64 who are approved under the Disability Tax Credit (DTC) can receive up to \$200/month.

Q3. When do payments for the CDB start?
A: Payments begin July 2025 for those approved by June 30, with retroactive support available for up to 24 months.

Q4. Can I claim both MHRTC and other credits?
A: Yes. MHRTC can be combined with other credits like HATC, Medical Expense Credit, or Caregiver Credit for greater savings.

Q5. What documents do I need for MHRTC?
A: Keep all receipts, permits, and photos of the renovation. File them with Schedule 12 when submitting your 2025 tax return.