As of January 1, 2024, Immigration, Refugees and Citizenship Canada (IRCC) has implemented a significant change to the financial requirements for international study permit applicants. The cost-of-living benchmark, which had been set at $10,000 CAD for over two decades, has now been increased to $20,635 CAD per year. This amount is separate from tuition fees and travel costs, which students must also be able to cover.
Maple News reports that this update reflects Canada’s evolving economic landscape and the rising cost of living. According to IRCC, the former standard no longer reflected the actual expenses faced by international students. The aim of the updated requirement is twofold: to ensure students arrive financially prepared and to reduce their vulnerability to exploitation or hardship while studying in Canada.
To ensure continued relevance, the cost-of-living requirement will now be reviewed annually and aligned with changes to Statistics Canada’s Low-Income Cut-Off (LICO). LICO is the income threshold below which a family spends a disproportionately large share of its income on basic necessities. By pegging the student financial threshold to LICO, the Canadian government aims to maintain economic accuracy and sustainability in its international education system.
The new benchmark brings Canada’s financial requirements in line with other high-demand study destinations. For instance, international students in Australia must demonstrate access to roughly $21,826 CAD for living expenses, while in New Zealand, the figure sits at approximately $20,340 CAD. The UK falls within a similar range, with living costs estimated at roughly $15,680–$20,447 CAD depending on location.
However, Canada remains more expensive compared to countries like Germany, France, and Denmark, some of which require as little as $1,175 CAD in proof of financial support. In the U.S., the required financial proof varies but generally starts at around $10,000 USD.
Despite the increased financial threshold, Canada continues to be a top destination for international students. According to a 2023 Emerging Futures survey by IDP Education, Canada ranked as the most desired study destination among prospective students worldwide, citing factors such as inclusive immigration pathways and a high quality of life.
In anticipation of potential challenges for economically disadvantaged applicants, IRCC has indicated plans to pilot targeted initiatives aimed at supporting underrepresented international student groups. These pilots are expected to help maintain diversity and access while upholding financial preparedness.
For students eyeing Canada as a study destination in 2024 and beyond, the updated policy underscores the importance of detailed financial planning. While the bar has been raised, the shift also strengthens Canada’s position as a country committed to ensuring its international students thrive both academically and financially.