Canada Raises Study Permit Financial Requirement To CAD 22,895 From Sept 1, 2025

International students planning to study in Canada will soon need to show higher proof of funds as part of their visa application process. According to a recent update by Immigration, Refugees and Citizenship Canada (IRCC), the cost-of-living criteria for a single applicant would increase from CAD 20,635 to CAD 22,895 as of September 1, 2025.

The revised financial threshold applies to study permit applications submitted on or after September 1 and affects students heading to provinces and territories outside Quebec. Students are already expected to pay for their first year's tuition and travel fees, so this hike is on top of those costs.

The IRCC revises this financial condition every year to account for Canada's increasing cost of living. The most recent revision was made on June 2, 2025, and provides students applying before the September cut-off with a limited window to apply at the current, lower limit.

What’s Changing?

For a single student, the required amount is increasing by over CAD 2,000. Families accompanying students will also need to show more funds. For instance, students bringing one family member must show CAD 28,502, up from CAD 25,690. For three members, the requirement is CAD 35,040, a noticeable jump from CAD 31,583.

Here’s a look at the updated requirements:

For 1 person:

• Old requirement: CAD 20,635

• New requirement: CAD 22,895

For 2 people:

• Old requirement: CAD 25,690

• New requirement: CAD 28,502

For 3 people:

• Old requirement: CAD 31,583

• New requirement: CAD 35,040

For 4 people:

• Old requirement: CAD 38,346

• New requirement: CAD 42,543

For 5 people:

• Old requirement: CAD 43,492

• New requirement: CAD 48,252

For 6 people:

• Old requirement: CAD 49,091

• New requirement: CAD 54,420

For 7 people:

• Old requirement: CAD 54,690

• New requirement: CAD 60,589

For each additional person:

• Old requirement: CAD 5,599

• New requirement: CAD 6,170  

The shift has sparked huge discussion within the international student community. The majority of Indian students are concerned with affordability because the majority of these students have stringent budgets. Ananya Mehta, 21, who plans to study for a Master's in Public Health in Toronto, commented, "The increase definitely adds to the worry, especially when you're already budgeting for accommodation, tuition, and travel. I had been planning to apply later this year, so now I will have to return to my financial documents and maybe look at a small education loan. It is a little stressful, but I understand why Canada is doing this—better to be ready than to suffer later."

Sharing the same sentiments, 19-year-old Gujarat undergraduate candidate Ravi Shah also shared the apprehension. "For a student like me, even a difference of a couple of thousand dollars can make a big difference. I have been applying and saving, so this adjustment just means that I have to pick up the pace and apply by September if I can. Nevertheless, I appreciate it that Canada is being transparent about this—it makes the students realistic about the cost of living in Canada."

What documents can be used?

 To meet the financial requirement, students can submit various forms of proof, such as:

• A Canadian bank account in the applicant’s name

• A Guaranteed Investment Certificate (GIC) from a recognised financial institution

• Bank-issued student or education loan documents

• The last four months’ bank statements

• A convertible bank draft

• A letter from a sponsor confirming financial support

• Scholarship or Canadian government funding documents

IRCC stresses that this financial proof is a key part of the study permit process and must be met in full at the time of application.

Why it matters

Saurabh Arora, Founder & CEO of University Living, believes the move signals a positive shift. "Canada’s move to raise the proof-of-funds requirement is part of a broader course correction strategy aimed at ensuring international students are better prepared for life in the country. With the cost-of-living benchmark increasing from CAD 20,635 to CAD 22,895, the shift acknowledges the rising expenses students face while studying and living in Canada. This change reflects a more realistic and responsible approach that prioritises student well-being and financial readiness," he said.

While the updated threshold may be challenging in the short term, especially for Indian students from price-sensitive backgrounds, Arora says it pushes families to plan better and reduces the likelihood of financial stress post-arrival.

"The 31% decline in study permits for Indian students in Q1 2025, compared to the same period last year, highlights how policy recalibrations are already reshaping mobility trends. However, this isn’t necessarily negative—it’s a sign that Canada is focusing on quality over quantity, refining its strategy to maintain long-term value for both students and the economy," he added.

Arora concludes that the new policy should be seen as a proactive step toward building a more balanced and future-ready international education framework.