Canada to Raise Financial Support Requirements for International Students

Introduction

Canada's Immigration, Refugees and Citizenship Canada (IRCC) has announced significant changes to its study permit financial requirements, effective September 1, 2025.

These updates aim to align proof-of-funds with rising living costs and protect both students and public services from strain.

Why the Change?

• Inflation & Housing Pressures
  IRCC has cited ongoing increases in inflation, rent, food, and transportation costs. The new financial thresholds are based on the province-by-province low-income cut-off (LICO) to ensure students can reasonably support themselves without relying on unauthorised work or aid.
• Student Vulnerability
  The shift reflects a commitment dating back to early 2024, when IRCC doubled the threshold from CA 10,000 to CAD  20,635, revealing that the old requirement was outdated and placing students at risk.

What Are the New Financial Thresholds?

Increased Minimum Funds

Under the new rules for applications submitted on or after September 1, 2025, applicants must prove the following living funds (excluding tuition & travel):

To study in Canada starting September 1, 2025, international students must demonstrate that they have sufficient funds to support themselves and any accompanying family members, based on the new cost-of-living thresholds.

For a single applicant, the required yearly funds are CAD 22,895. If two people are included, such as the student and a spouse, the amount increases to CAD 28,502. For a family of three, the amount rises to CAD 35,040.

These updated amounts reflect the government's effort to align with actual living expenses and reduce the risk of financial hardship for students and their families.

These figures represent a roughly 10.95% increase* across the board compared to current levels.

Gap Between Old vs. New Requirements

• For single applicants, monthly living funds rise from ~ CAD 1,720 to around $1,900.
• For families, the impact is even more pronounced. For example, a family of four must now prove CAD 42,543—about $4,200 more than previously required.

Acceptable Proof of Funds

Applicants can demonstrate required finances using:

• Canadian bank account with transferred funds
• Guaranteed Investment Certificate (GIC)
• Education loan documentation
• Bank statements covering the last four months
• Bank drafts in CAD
• Scholarship letters or financial sponsorship documentation.

Applicants from countries with foreign-exchange controls must also show proof of legal fund transfers.

Impact on International Student Trends

Immediate Consequences

• Reduced approvals for certain countries
  IRCC data indicate a 31% drop in Indian student permits during Q1 2025, down from 44,295 to 30,650 year-over-year. The stricter financial bar is seen as a significant contributing factor.
• Reconsideration of Canada as a destination
  Rising financial barriers have triggered concerns among Indian students, who are now considering other study-abroad options.

Broader Migration Strategy

• International student cap
  Canada’s cap on international student permits and tighter spouse work visas are part of a broader reduction in temporary migration, due in part to housing market压力 pressure力.
• Shift in student demographics
  Canadian universities, notably in B.C. and Ontario, report a surge in U.S. graduate applications. This is linked to stricter U.S. policies, but overall intake is constrained by Canada’s cap .

Reaction from Students and Stakeholders

Concerns from Source Countries

Student groups in Punjab, India, have voiced anxiety: increased costs are seen as barriers to education.

One student said that families “borrowed, sold and sacrificed to send their kids to school in Canada…and now Ottawa’s new rule has shattered their Canadian dream”

Support from Canadian Institutions

Some advocates argue the update is necessary. Reddit users describe the move as “long overdue,” with one calling it a “proactive solution” that should be reviewed regularly.

What This Means for Future Applicants

Effective Date Matters

It’s crucial to note that applications submitted before September 1, 2025, will still be evaluated under the current (lower) thresholds.

After this date, the new, higher requirements apply.

Planning Ahead is Key

• Budget adjustments: Students should factor the increased funds into their annual cost planning.
• Documentation readiness: Extra care must be taken to prepare bank statements, GICs, and loan documents.
• Timing applications: To benefit from current thresholds, applicants may aim to submit before the September cutoff.

Read More

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Policy Goals and Future Outlook

Prioritising Student Well-Being

IRCC maintains that the adjustment is not arbitrary. By tying requirements to LICO, the government ensures students are less vulnerable to exploitation and financial stress.

Long-Term Adjustments

Since the 2024 doubling, IRCC plans to review and adjust financial thresholds annually, ensuring alignment with living-cost inflation trends.

Final Takeaway

Canada’s decision to increase the financial proof requirement reflects a delicate balancing act: the country wants to remain a top destination for international students while protecting individuals and maintaining its systemic capacity.

Effective September 1, 2025, the updated thresholds will impact application strategies worldwide. Prospective students should prepare thoroughly, budget for the new amounts, and consider applying before deadlines to capitalise on current guidelines.