Canada Increases Study Permit Living Expense Requirement to $22,895

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As of September 1, 2025, Immigration, Refugees and Citizenship Canada (IRCC) has implemented a significant update to the financial requirements for international students applying for a Canadian study permit. The minimum cost-of-living funds required for a single applicant (outside Quebec) will increase by 10.95% to $22,895 CAD, up from the previous $20,635 set in January 2024. This adjustment, tied to Statistics Canada’s Low-Income Cut-Off (LICO), reflects the rising cost of living in Canada, including housing, food, transportation, and other essentials.

The goal is to ensure international students can sustain themselves financially while pursuing their studies without undue hardship. Below, we dive into the details of this change, its implications, and how you can prepare for a successful study permit application.

Why the Change in Financial Requirements?

The cost-of-living requirement for study permits had remained stagnant at $10,000 CAD since the early 2000s, despite Canada’s increasing living expenses. This outdated threshold left many students struggling to cover essentials like rent, groceries, and transportation in cities like Toronto, Vancouver, and Montreal, where costs are notably high. To address this, IRCC introduced a revised requirement of $20,635 in January 2024, and the new increase to $22,895 for 2025 accounts for ongoing inflation and economic shifts.

This adjustment ensures that:

• Students are financially prepared for Canada’s high cost of living.
• They can focus on their studies without needing to work excessive hours (note: study permit holders can work up to 20 hours per week off-campus during academic sessions).
• The risk of financial distress or reliance on unauthorized work is minimized.

The new threshold is based on Statistics Canada’s 12-month LICO, which measures the minimum income needed to meet basic needs in urban areas. IRCC has indicated that this figure will be adjusted annually to keep pace with economic changes, with the next update expected in January 2026.

What Are the New Financial Requirements?

For international students applying for a study permit, the financial requirements vary depending on the number of accompanying family members and the province of study (Quebec has separate rules). Here’s a breakdown for 2025:

Outside Quebec

• Single Applicant: $22,895 CAD for living expenses, plus first-year tuition and travel costs.
• With One Family Member (e.g., spouse or child): $28,490 CAD.
• Family of Three: $35,040 CAD.
• Each Additional Family Member: Add approximately $5,000–$6,000 CAD per person.

Quebec operates under a separate immigration agreement with Canada, and its financial requirements are slightly different. For 2025, the estimated requirements (subject to confirmation from Quebec’s immigration authority, MIFI) are:

• Single Applicant: Approximately $16,500–$18,000 CAD (pending official update).
• With Family Members: Additional funds are required based on family size. For example, a family of three may need around $25,000–$30,000 CAD.

Applicants planning to study in Quebec should consult the Ministère de l’Immigration, de la Francisation et de l’Intégration (MIFI) website or contact their chosen institution for precise figures.

What Counts as Proof of Funds?

To satisfy IRCC requirements, you must provide verifiable evidence of sufficient funds to cover living expenses, tuition, and return transportation. Acceptable forms of proof include:

1. Guaranteed Investment Certificate (GIC):
   • A GIC from a participating Canadian financial institution (e.g., Scotiabank, CIBC, or ICICI Bank) is a popular option.
   • Typically, students deposit $10,000–$12,000 CAD into a GIC, which is gradually released to cover living expenses upon arrival.
   • Example: Scotiabank’s Student GIC Program requires a $10,200 CAD deposit, with $2,000 available upon arrival and the remainder paid out monthly.
2. Canadian Bank Account:
   • A bank account in your name with funds transferred to Canada, supported by a bank letter confirming the balance.
3. Bank Statements:
   • Statements from the past four months showing consistent funds in your or your sponsor’s account.
   • Funds must be readily accessible (e.g., not tied up in investments or real estate).
4. Proof of a Student Loan:
   • A loan approval letter from a recognized financial institution, clearly stating the amount available for your studies.
5. Scholarship or Funding Letters:
   • Official documentation from your educational institution or a funding body confirming financial support.
6. Sponsorship:
   • If a family member or third party is funding your studies, provide a signed letter of support, their bank statements, and proof of their income (e.g., tax returns or pay stubs).

Note: Cryptocurrency, stocks, or non-liquid assets are generally not accepted as proof of funds. All documents must be in English or French, or accompanied by a certified translation.

How Does Canada’s Requirement Compare Globally?

Canada’s updated financial threshold is competitive with other popular study destinations. Here’s a comparison of living expense requirements for a single applicant (converted to CAD for consistency):

• Canada: $22,895 CAD (plus tuition and travel).
• Australia: $24,505 AUD (~$21,826 CAD) for 12 months, plus travel costs.
• New Zealand: $20,000 NZD (~$20,340 CAD) per year.
• United Kingdom: £1,334/month in London ($20,447 CAD/year) or £1,023/month outside London ($15,680 CAD/year).
• United States: Varies by institution, but typically $10,000–$15,000 USD (~$13,500–$20,250 CAD) for living expenses.

Canada’s requirements are moderate compared to Australia but higher than the UK or US, reflecting its focus on ensuring students can afford urban living costs in cities like Toronto (rent: $1,500–$2,500/month for a one-bedroom) or Vancouver (rent: $1,800–$3,000/month).

Breaking Down Canada’s Cost of Living

To understand why $22,895 is required, here’s a rough breakdown of monthly expenses for a single student in a major Canadian city (e.g., Toronto, Vancouver, or Montreal):

• Rent: $1,200–$2,000 (shared accommodation or one-bedroom apartment).
• Groceries: $300–$500.
• Transportation: $100–$150 (public transit pass, e.g., Toronto’s TTC monthly pass is ~$156).
• Health Insurance: $50–$100 (mandatory for international students in most provinces).
• Utilities/Phone/Internet: $100–$200.
• Miscellaneous (clothing, entertainment, etc.): $200–$400.

Total Monthly Estimate: $1,950–$3,350 (~$23,400–$40,200/year). The $22,895 requirement assumes frugal living (e.g., shared housing) and excludes tuition, which can range from $15,000–$50,000/year depending on the program and institution.

Key Considerations for Applicants

1. City-Specific Costs:
   • High-Cost Cities: Toronto, Vancouver, and Calgary have higher living expenses. For example, Vancouver’s one-bedroom apartment averages $2,800/month (2025 estimates).
   • Affordable Options: Cities like Halifax, Winnipeg, or smaller towns like Fredericton have lower costs (rent: $800–$1,200/month).
2. Tuition Fees:
   • Undergraduate programs: $20,000–$40,000/year.
   • Graduate programs: $15,000–$50,000/year.
   • Always confirm with your institution, as fees vary by program (e.g., engineering or medicine is pricier).
3. Work Opportunities:
   • Study permit holders can work up to 20 hours/week off-campus during academic terms and full-time during breaks (e.g., summer).
   • Average part-time wages: $15–$20/hour, but this alone won’t cover all expenses.
4. Scholarships and Funding:
   • Explore scholarships like the Vanier Canada Graduate Scholarships ($50,000/year) or institution-specific awards.
   • Check with your Designated Learning Institution (DLI) for funding options.
5. Quebec-Specific Rules:
   • Quebec requires a Certificate of Acceptance of Quebec (CAQ) before applying for a study permit.
   • Financial requirements and processing times differ, so check MIFI’s website.

How to Prepare for Your Study Permit Application

1. Research Your Program and Costs:
   • Obtain a Letter of Acceptance from a Designated Learning Institution (DLI).
   • Calculate total costs: tuition + $22,895 (living expenses) + travel (~$1,000–$2,000).
2. Secure Your Funds:
   • Open a GIC or Canadian bank account early to meet proof-of-funds requirements.
   • If using a sponsor, ensure their documentation is complete and verifiable.
3. Gather Documents:
   • Passport, Letter of Acceptance, proof of funds, medical exam (if required), and a Statement of Purpose explaining your study plans.
   • Quebec applicants need a CAQ from MIFI.
4. Apply Early:
   • Processing times vary (e.g., 8–12 weeks for study permits, longer for Quebec).
   • Apply at least 4–6 months before your program starts.
5. Consider Professional Help:
   • Consult a Regulated Canadian Immigration Consultant (RCIC) or lawyer for complex cases.

IRCC’s Commitment to Student Success

This increase to $22,895 reflects Canada’s commitment to ensuring international students can thrive academically and personally. The policy also aims to protect students from exploitation, such as reliance on low-wage jobs or overcrowded housing due to insufficient funds. IRCC emphasizes that students should focus on their education, not financial survival.