A photorealistic aerial view of a modern university campus in Canada during autumn, with maple trees in vibrant red and gold colors framing the scene. In the foreground, a diverse group of international students sit on campus benches with laptops and textbooks, while Canadian flags flutter gently in the background.
The lighting is soft and warm, creating a welcoming atmosphere. Overlaid transparently in the lower third is elegant white sans-serif text reading “New Financial Requirements 2025″ with a subtle shadow effect. Select an Image
Instant Answer: The Canadian government has increased the minimum financial requirement for international students from CAD$20,635 to CAD$22,895 per year, effective from September 1, 2025. This increase is designed to align with inflation and ensure that students can cover their tuition fees, living expenses, and transportation costs.
Canada has long been a favorite destination for international students, and with its high-quality education system and diverse, multicultural environment, it’s easy to see why. However, in recent years, rising costs and inflation have led the Canadian government to revise its financial requirements for students applying for a study permit. As part of a phased approach announced in December 2023, the government is increasing the minimum amount of funds that international students must prove they have in order to study in Canada.
In this blog post, we’ll explore the key details of the new financial requirements, why this change is happening, and how it will affect students planning to study in Canada. We’ll also compare Canada’s financial requirements with those of other major study destinations, such as Australia, the UK, and the US.
Contents
New Financial Requirement: What’s Changed?
A clean, professional infographic-style digital illustration showing two Canadian dollar bills side by side. The left bill shows “CAD$20,635” in bold red text with a strikethrough effect, while the right bill displays “CAD$22,895” in vibrant green text with an upward arrow.
The background features a subtle gradient from light blue to white, with small maple leaf icons scattered delicately around the edges. Below the bills, elegant typography reads “Effective September 1, 2025” in a modern sans-serif font. Select an Image
Starting from September 1, 2025, international students applying for a study permit in Canada will need to demonstrate that they have a minimum of CAD$22,895 in available funds to cover tuition, living expenses, and transportation costs. This is an increase from the previous requirement of CAD$20,635. The revised financial guidelines are part of Canada’s strategy to align with inflation and the rising cost of living.
This change will apply to all Canadian provinces and territories except Quebec, which has its own set of financial requirements for international students.
Key Points:
- New minimum proof of funds: CAD$22,895 per year, up from CAD$20,635.
- Additional funds for dependents: The required amount will increase if the student is bringing family members.
- Quebec exception: Quebec has separate financial guidelines.
Why is This Increase Happening?
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The increase in financial requirements is part of Canada’s broader economic strategy to align immigration policies with the realities of living expenses. Over the past few years, the cost of living in Canada has steadily risen, particularly in major cities like Toronto, Vancouver, and Montreal. As a result, the previous proof of funds requirement was no longer sufficient to cover students’ living expenses, prompting the Canadian government to adjust the financial threshold.
The increase also serves to ensure that international students will not need to rely on working while studying. While Canada allows international students to work part-time, the goal is to ensure that students can cover their basic expenses without depending on income from a part-time job.
How Does This Affect International Students?
This change may affect many prospective international students, especially those who were not fully prepared for the increased financial requirements. However, there are several ways to manage this financial burden:
1. Additional Expenses for Family Members
If students are bringing family members, such as spouses or children, the required funds will increase accordingly. The exact amount varies depending on the number of dependents, so it’s crucial to factor in these extra costs when applying for a study permit.
2. Living Costs and Housing
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The increased minimum funds are intended to cover living expenses such as accommodation, food, transportation, and other daily costs. Students planning to study in major urban centers should be especially mindful of the higher living expenses in cities like Toronto, Vancouver, and Montreal.
3. Tuition Fees
The revised financial requirement also considers the rising tuition costs for international students. While tuition fees vary by program and institution, the increased funds requirement will help ensure that students can afford their studies without financial hardship.
4. Currency Exchange
For students from countries with weaker currencies, the increased requirement may put additional pressure on finances. It’s important to account for potential currency exchange fluctuations when calculating the amount needed to cover costs in Canadian dollars.
Comparison with Other Countries
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The background uses a deep navy blue with subtle geographic patterns, while the country highlights use distinct colors: red for Canada, green for Australia, blue for UK, and purple for USA. Select an Image
Canada is not the only country adjusting its financial requirements for international students. Other major study destinations have also made changes in response to inflation and rising costs.
Australia:
In Australia, the student visa fee has been raised to AUD$2,000, and living costs have also been increasing. International students must prove they have sufficient funds to cover their tuition and living expenses, similar to Canada’s requirements.
United Kingdom:
In April 2025, the UK raised international student visa fees from £490 to £524. Students also need to prove that they can cover their living expenses and tuition fees, and the cost of living in the UK, particularly in cities like London, has increased in recent years.
United States:
The US has introduced several new immigration fees, including the “visa integrity fee” of at least $250 and a $24 Form I-94 application fee. These fees, along with the increasing cost of living, are making it more expensive for international students to study in the US.
How Can You Manage the New Financial Requirements?
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While the increased financial requirement may seem daunting, there are several steps you can take to manage the financial burden:
1. Create a Realistic Budget
Start by calculating your expected expenses, including tuition, housing, food, transportation, and personal costs. By knowing exactly how much you will need, you can better prepare and ensure that you meet the financial requirements.
2. Look for Scholarships and Financial Aid
Many Canadian universities offer scholarships and financial aid packages for international students. These can help alleviate the financial burden and may reduce the amount of funds you need to show.
3. Consider Studying in Less Expensive Areas
If you’re open to studying in less costly cities or regions, you may be able to reduce your living expenses. Smaller cities often have lower housing costs and a lower cost of living compared to major urban centers like Toronto or Vancouver.
4. Save Early
If you are planning to study in Canada, start saving as early as possible. The more you can save before your study permit application, the easier it will be to meet the financial requirements.
5. Explore Part-Time Work Options
While students are not required to work to meet the financial requirement, part-time work is allowed while studying in Canada. Be sure to research the rules and regulations surrounding part-time work for international students, as income from these jobs can help you cover additional expenses.
Conclusion
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The lighting is warm and inspirational, with lens flares from the setting sun creating an optimistic, aspirational mood. The scene conveys success, opportunity, and the bright future that awaits well-prepared students. Select an Image
The increase in financial requirements for international students applying for study permits in Canada is an important change that aligns with inflation and rising living costs. While the new minimum of CAD$22,895 may seem high, it is designed to ensure that students can support themselves without relying on part-time employment in Canada.
Students must carefully plan their finances and explore scholarship opportunities, budget strategies, and part-time work options to meet these new requirements. With the right preparation, studying in Canada remains a viable and rewarding opportunity.
