Canada increases financial requirements for students from September 2025
Starting September 1, 2025, international students aiming to study in Canada must show significantly higher proof of funds to obtain a study permit. The Canadian government has officially announced a revised cost-of-living requirement that better reflects the country’s rising living expenses. This change is part of a broader effort by Immigration, Refugees and Citizenship Canada (IRCC) to ensure students are adequately prepared financially and not vulnerable to exploitation or hardship once they arrive.
Why the Change?
Previously, the required funds to cover living expenses for a single applicant were around CAD 20,635. However, the new benchmark has been raised to CAD 22,895 per year. This move is aligned with Canada’s Low-Income Cut-Off (LICO) threshold, which is regularly updated based on inflation and average living costs.
IRCC noted that the older thresholds, unchanged for years, were no longer sufficient to support students in a country facing a housing affordability crisis, increasing food prices, and growing competition for part-time jobs. The change is also intended to address concerns about international students arriving in Canada under-prepared financially, which sometimes leads to overcrowded housing, financial stress, or even dropping out.
Breakdown of the New Cost-of-Living Requirement
The updated financial requirements for students and accompanying family members (excluding tuition and travel costs) are as follows:
| Family Size | Required Funds (CAD/year) |
|---|---|
| 1 person | $22,895 |
| 2 people | $28,502 |
| 3 people | $35,040 |
| 4 people | $42,543 |
| 5 people | $48,252 |
| 6 people | $54,420 |
| 7 people | $60,589 |
| Each additional person | +$6,170 |
These updated figures reflect an increase of nearly 11% compared to the 2024 benchmarks and apply to all provinces and territories except Quebec, which maintains its own financial guidelines for study permits.
Who Is Affected?
The new financial thresholds will apply to all study permit applications submitted on or after September 1, 2025. If you submit your application before that date, you will still be assessed under the previous financial criteria. This gives prospective students a narrow window to apply before the changes take effect, though waiting may give applicants more time to prepare comprehensive documentation.
It’s important to note that this change affects not just new applicants, but also those seeking extensions or reapplying due to previous refusals. Anyone applying after the deadline must show that they or their sponsors have access to sufficient funds based on the revised requirements.
Acceptable Proof of Funds
To meet the financial requirement, students must provide evidence of their ability to support themselves while studying in Canada. Acceptable documentation includes:
- A Canadian bank account in your name (if money has already been transferred to Canada)
- A Guaranteed Investment Certificate (GIC) from a participating Canadian financial institution
- Proof of an education loan from a recognized financial institution
- Bank statements for the past four months
- A bank draft convertible to Canadian dollars
- Proof of payment of tuition and accommodation fees
- A letter from the person or institution providing you with money
- Proof of funding from a scholarship or Canadian-funded educational program
Each of these documents must be recent, verifiable, and clearly show the source and amount of funds available.
Impact on Indian and Other South Asian Students
The increase in financial requirements has already had a visible impact on Indian students, who represent one of the largest groups of international students in Canada. Recent data shows a 31% drop in study permits issued to Indian nationals in the first half of 2025 compared to the same period in 2024. With many Indian families relying on loans or savings, the steeper financial threshold may discourage students from applying or delay their plans.
Additionally, the delay in visa processing and tightening of part-time work rules for students has made Canada slightly less attractive for budget-conscious international learners. However, officials argue that this move will ultimately benefit students by encouraging better preparation and reducing the risk of financial instability.
Planning Ahead: Tips for Prospective Students
If you’re planning to study in Canada after September 2025, here are a few important tips:
- Start Financial Planning Early: Work with your family or financial institution to determine how you’ll meet the new threshold. A GIC is often the simplest route.
- Submit Your Application Before the Deadline: If you’re close to completing your paperwork, consider applying before September 1, 2025, to qualify under the old rules.
- Seek Scholarships or Financial Aid: Many Canadian universities and provinces offer scholarships for international students. Look for options early and apply widely.
- Double-Check All Documentation: Your study permit application can be rejected if your financial documents are incomplete or unclear.
- Stay Informed: Visit the official Canada.ca website or consult a licensed immigration advisor for updates and accurate guidance.
Final Thoughts
Canada continues to be a top destination for international students, offering world-class education and post-study opportunities. However, with the rising cost of living and recent immigration reforms, students must be more financially prepared than ever. The new financial requirements, effective from September 2025, are designed to ensure a safer, more stable experience for incoming students—while reducing strain on housing and social systems.
Prospective students should take this announcement seriously and begin preparations well in advance. With proper planning, the dream of studying in Canada can still be a rewarding and attainable goal.
