Canada to Enforce Higher Financial Requirements for International Students from September 2025
International students dreaming of studying in Canada will need to plan their finances more carefully. In a significant policy update, the Canadian government has announced stricter financial requirements for study permit applicants, which will come into effect starting September 1, 2025.
This move is aimed at ensuring that international students can support themselves comfortably throughout their studies — not just for tuition, but also for daily living, travel, and family expenses — without having to rely on part-time jobs during their stay.
What’s Changing and Why?
Currently, students applying for a Canadian study permit are required to demonstrate they can cover both their tuition fees and cost of living. Under the new rules, the minimum living expense requirement will rise to CAN $22,895 per year for a single applicant. That’s a notable increase from the existing benchmark of CAN $20,635.
This living cost estimate excludes tuition fees and is based on the low-income cut-off (LICO), which the government uses to ensure that students won’t fall below a minimum living standard. These figures are updated each year in line with inflation and cost-of-living trends.
The total amount of funds a student needs to show will also increase if they plan to bring family members to Canada with them. For example:
- A student with two dependents (such as a spouse and child) must now demonstrate access to CAN $35,040 in available funds annually.
- If the same family trio is moving to a non-Quebec province, they will need to show proof of at least CAN $31,583 solely for living expenses.
Acceptable Forms of Financial Proof
To meet the updated financial requirements, students will need to submit documented evidence of their financial readiness. Accepted forms of financial proof include:
- Receipts confirming paid tuition fees and housing deposits
- Guaranteed Investment Certificates (GICs) from Canadian financial institutions
- Recent bank statements (covering the last four months)
- Documentation for education loans
- Proof of a Canadian bank account in the student’s name
- Letters of financial support, scholarship awards, or sponsorship confirmations
For students from countries that enforce foreign exchange controls, additional documentation will be needed to prove that the funds can be legally transferred to Canada.
Important Dates to Note
Students who submit their study permit applications before September 1, 2025 will be assessed under the current (lower) financial criteria. However, applications submitted on or after that date must meet the new, higher financial thresholds.
Québec Has Its Own Requirements
Students intending to study in Québec should be aware that the province has its own financial expectations, which go beyond tuition and daily expenses.
Applicants must demonstrate they can afford settlement costs, health insurance, and travel, in addition to their studies. Québec requires that international students are insured for the entire duration of their stay, either through a private plan, provincial coverage (if eligible), or a social security agreement between Québec and the student’s home country.
Why These Changes Matter
While studying in Canada remains an attractive option for many Indian and international students, these updated rules serve as a reminder that careful financial planning is crucial. The Canadian government is emphasising that international students should not rely on part-time employment to meet their basic needs — a change that places more importance on proof of financial stability before arrival.
This policy is part of Canada’s broader effort to ensure that students coming from abroad have a secure and supported academic experience, free from financial stress.
What to Do Next
If you’re planning to apply to a Canadian institution for Fall 2025 or later, start preparing your finances early. Make sure you’re aware of all updated guidelines and collect valid proof of funds well ahead of time.
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