Canada Increases Financial Requirements for International Students Applying for Study Permits
Canada has recently revised its financial requirements for international students, increasing the minimum amount of funds that applicants must demonstrate in order to obtain a study permit. This change, announced on June 2, 2025, is intended to better reflect the actual cost of living in Canada and ensure students are financially prepared for their stay. The updated rules will take effect from September 1, 2025, and apply to all provinces and territories outside of Quebec.
Under the new regulations, students applying for study permits on or after September 1, 2025, must show higher proof of funds to account for living expenses, tuition, and travel. This updated requirement is part of the Canadian government’s ongoing efforts, led by Immigration, Refugees and Citizenship Canada (IRCC), to safeguard the well-being of international students by ensuring they can meet their financial needs while studying in Canada.
The new minimum proof of financial support has been increased by more than $2,000 for single applicants. The required amount has gone from CAN$20,635 to CAN$22,895 annually (not including tuition fees). For students arriving with family members, the threshold is even higher:
- CAN$28,502 annually for two family members (including the applicant)
- CAN$35,040 annually for three family members (including the applicant)
These amounts are separate from and in addition to the first-year tuition fee, which students are also required to demonstrate they can pay in full for programs longer than one year. The Canadian government adjusts these figures annually to reflect the rising cost of living.
However, applicants submitting their study permit applications before September 1, 2025, will still be evaluated under the current rule, which took effect on January 1, 2024. This grace period offers students currently planning to apply some flexibility before the new rules are enforced.
To meet these updated financial requirements, students must provide one or more of the following documents as proof of funds:
- Evidence of full or partial tuition and housing payments
- A Canadian bank account in the applicant’s name, if money has already been transferred to Canada
- A Guaranteed Investment Certificate (GIC)
- Proof of an education loan from a financial institution
- Bank statements from the last four months
- Documents showing income from scholarships or financial aid
- A letter from a sponsor explaining their financial support and providing proof of income
The purpose of these requirements is to ensure that international students—and any family members accompanying them—can afford living expenses, education costs, and return travel, even if they do not work during their time in Canada. This policy helps avoid situations where students face financial difficulties after arriving in the country.
The Canadian government has been vocal about its commitment to supporting international students, who contribute significantly to the country’s economy and cultural diversity. However, with a rise in the cost of living and growing concerns about student welfare, there is now a sharper focus on verifying that students are adequately prepared for life in Canada.
An official from IRCC stated, “Canada welcomes international students and values the diverse contributions they make. By aligning the financial thresholds with real-world living costs, we are helping ensure a smoother, more stable experience for incoming students.”
The update is expected to impact thousands of international students planning to study in Canada in the coming years. As such, students and educational consultants are encouraged to start financial planning well in advance to meet the new proof of funds requirements.
For those considering study in Canada beyond September 2025, being aware of these updated rules is essential. With proper preparation and clear documentation, students can still pursue their academic dreams in Canada, fully supported and set up for success.
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