Canada Increases Financial Requirements for International Students Starting September 2025

In a major update that will impact thousands of prospective international students, the Government of Canada has revised its financial requirements for study permit applicants, effective September 1, 2025. The move is aimed at ensuring that students arriving in Canada are financially stable and capable of supporting themselves—and their families—without needing to rely on employment during their stay.

This policy shift comes in response to growing concerns around the cost of living in Canada and aims to prevent financial hardship among international students by encouraging better financial preparedness.

What’s New: Higher Living Expense Requirements

Under the updated guidelines, international students must now show proof of funds that cover not just tuition, but also:

• Increased living expenses
• Transportation costs
• Costs for any accompanying dependents

Previously, the cost-of-living threshold (excluding tuition fees) was CAN $20,635 for a single student. As of September 1, 2025, that threshold has risen to CAN $22,895 per year. This figure will scale upward based on the number of dependents accompanying the student.

For example:

• A student with two dependents will now be required to show CAN $35,040 in available funds per year.
• For a student and two dependents settling in a province or territory outside Quebec, the required amount for living expenses alone will be CAN $31,583 annually.

These increased amounts are exclusive of tuition fees, meaning students must separately prove their ability to pay for both tuition and personal living expenses.

Acceptable Financial Documents

To meet these revised requirements, students must provide clear and verifiable proof of financial resources. The Canadian government has listed the following as acceptable forms of evidence:

• Receipts for paid tuition and housing
• Guaranteed Investment Certificates (GICs)
• Bank statements from the past four months
• Proof of an education loan from a recognized financial institution
• A Canadian bank account in the student’s name
• Official letters confirming financial support or scholarship awards

Requirements for Students from Countries with Currency Controls

Applicants from countries with foreign exchange controls will need to provide legal proof that their funds can be transferred to Canada. This includes documentation showing that the funds are:

• Legally obtained
• Transferable under the respective country’s financial regulations

This is a crucial step to ensure that funds shown on paper can be practically accessed once the student arrives in Canada.

Québec-Specific Guidelines

Students intending to study in Québec will also need to meet enhanced financial standards that include:

• Tuition fees
• Living and travel expenses
• Settlement costs
• Mandatory health insurance for the entire duration of their stay

Exceptions to the health insurance requirement may apply if the student is already insured in Québec or comes from a country with a social security agreement with Québec.

Important Dates to Remember

• Students applying before September 1, 2025 will be assessed under the current financial guidelines.
• Applications submitted on or after September 1, 2025 must meet the new, increased financial thresholds.

The Canadian government has clarified that these requirements are reviewed and updated annually based on the Low-Income Cut-Off (LICO) metric to reflect inflation and rising costs of living.

Why This Matters

Canada remains one of the most popular destinations for higher education globally. However, the cost of living—especially in cities like Toronto, Vancouver, and Montreal—has risen significantly in recent years. The revised guidelines ensure that incoming students are better prepared to handle the financial responsibilities of studying and living in Canada.

The government’s goal is to enhance student well-being, reduce reliance on part-time jobs, and ensure that students can focus on their academics without facing financial distress.

Conclusion: Plan Ahead and Prepare Thoroughly

With these new financial requirements taking effect from September 1, 2025, prospective students and their families must start financial planning well in advance. Understanding the true cost of studying and living in Canada—beyond tuition—is essential to submitting a successful study permit application.