Canada raises financial proof requirement for international students again, one year after previous hike

Students pass by Thunderbird Arena of the University of British Columbia (UBC) in Vancouver, British Columbia, Canada, April 14, 2025. Photo by Reuters International students planning to study in Canada must now prove they have at least CA$23,448 (US$16,952) in annual living expenses following a new government mandate that took effect on Sept. 1. The Immigration, Refugees and Citizenship Canada (IRCC) announced the roughly $550 increase early this week, noting that the required funds exclude tuition and transportation costs."We’ve updated the cost-of-living criteria for study permit applicants so they’ll have what they need to cover rent, groceries and other expenses while they study in Canada," it said on X.The adjustment is tied to Statistics Canada’s annual low-income cut-off, a metric used to ensure individuals have sufficient capital to cover rent, groceries, and other essential necessities without financial hardship.Under the updated guidelines, students bringing family members to Canada must demonstrate an additional $6,318 for each accompanying person. While applications submitted prior to the Sept. 1 cutoff will be evaluated under the previous financial thresholds, applicants enrolling in multi-year programs are now required to provide a clear funding strategy for their subsequent academic years.The federal policy applies to most international applications, with the notable exception of those destined for Quebec. Students studying in Quebec must obtain a provincial acceptance certificate and demonstrate a higher financial baseline of $24,600.In an IRCC’s release back in 2023, the Minister of Immigration, Refugees and Citizenship, announced that starting Jan. 1, 2024, the cost-of-living financial requirement for study permit applicants "will be raised so that international students are financially prepared for life in Canada.""Moving forward, this threshold will be adjusted each year when Statistics Canada updates the low-income cut-off (LICO)," it said.LICO represents the minimum income necessary to ensure that an individual does not have to spend a greater than average portion of income on necessities.This recent adjustment continues a sharp upward trajectory that began early last year, effectively ending a two-decade period where the financial requirement remained at just $10,000. The threshold surged to $20,635 in January 2024 before climbing again to $22,895 last September to keep pace with the rising national cost of living.These escalating financial barriers coincide with broader federal efforts to restrict immigration levels and tighten overall visa approval procedures.In 2025, approximately 690,000 students held Canadian study permits, marking a strong decline from the more than one million permit holders recorded in previous years. Number of people in study permit application Previous financial requirement (CAD) Financial requirement from Sept. 1 (CAD) 1 (primary applicant) 22,895 23,448 2 28,502 29,192 3 35,040 35,888 4 42,543 43,572 5 48,252 49,419 6 54,420 55,736 7 60,589 62,054 Canada in January recorded a historic drop in new international student permits after the government tightened rules, with data from the IRCC showing a 97% decline from the peak in December 2023.The IRCC data show that just 2,485 new study permits were issued in November 2025, compared with 95,320 in December 2023, when approvals surged ahead of the winter intake, the highest monthly total on record.In a public statement, the department said the figures show its reforms are having the intended effect, easing pressure on housing, healthcare and public services.