In a significant policy shift that will directly impact thousands of aspiring international students, the Canadian government has announced a steep hike in the minimum proof-of-funds requirement for study permit applicants. Beginning September 1, 2025, international students applying for permits outside the province of Quebec will have to demonstrate that they possess at least CAD 22,895 to cover their annual living expenses—up from the current CAD 20,635. This revision, representing an over 11% increase, is part of a broader strategy by Immigration, Refugees and Citizenship Canada (IRCC) to align financial benchmarks with the actual cost of living in the country, which has soared in recent years due to inflation in housing, food, and transport.
The IRCC clarified that the updated financial threshold is aimed at ensuring that students arriving in Canada are better prepared to support themselves without undue hardship or reliance on public assistance. The change is being introduced in the wake of growing concerns over the rapid rise in the number of international students, which some critics argue has placed significant pressure on local infrastructure, housing availability, and job markets. Canada’s newly elected government, under Prime Minister Mark Carney, has also committed to capping the overall number of temporary residents, including international students and foreign workers, to no more than 5% of the country’s population by 2027. As part of this plan, the number of study permits to be issued annually has been reduced from 485,000 in 2024 to 437,000 in both 2025 and 2026.
Applicants submitting study permit applications on or after September 1 will have to provide proof of funds covering both tuition and living costs. Acceptable documentation includes Canadian bank account statements, a Guaranteed Investment Certificate (GIC), educational loan documents, bank drafts, and letters of scholarship or sponsorship. The financial requirements also vary according to family size, with CAD 28,502 required for two people and up to CAD 60,589 for a household of seven. Each additional family member would require an extra CAD 6,170.
For Indian students, who form one of the largest cohorts of international students in Canada, the new requirement translates to roughly ₹14 lakh in funds—excluding tuition fees. This development comes at a time when the number of study permits issued to Indian nationals is already on the decline. According to recent IRCC data, permits granted to Indian students dropped from over 44,000 in the first quarter of 2024 to just above 30,000 in the same period of 2025, a fall of nearly 31%. Experts suggest that the increased scrutiny and financial burden could push prospective students to consider alternative destinations like Germany, Ireland, the Netherlands, or Singapore, where entry requirements are more affordable or transparent.
The Canadian government has also warned that institutions failing to provide adequate student support services, such as housing or employment assistance, may face penalties or even visa caps. Minister of Immigration Marc Miller previously flagged the rise in international students accessing food banks and attending unregulated diploma mills as red flags that necessitate tighter regulation. In recent months, multiple institutions have already seen visa refusals or permit rejections for failing to meet the government’s updated compliance standards.
While the IRCC insists the new financial benchmark is a necessary correction in the wake of rising living costs and systemic exploitation, critics warn that the measure could act as a deterrent for genuine students from developing countries. Nevertheless, the government maintains that it is committed to welcoming international talent—but only those who can demonstrate genuine intent and adequate preparedness to thrive in Canada’s demanding academic and economic environment. As the changes loom, students and education consultants are rushing to submit applications under the current requirements before the September deadline, even as they brace for a new era of stricter screening and accountability.
