For study permit applicants, Immigration, Refugees and Citizenship Canada (IRCC) will be adjusting their cost-of-living requirement as of January 1st 2024. It is the biggest change since the early 2000s, when the requirement was set at $10,000 per applicant.

The new cost-of-living requirement will be $20,635, which is in addition to the first year of tuition and travel costs.

The IRCC acknowledges that the old financial requirements are no longer relevant and the increase will help prevent student vulnerability and exploitation. Underrepresented cohorts of international students may encounter challenges during this adjustment, so IRCC plans to implement targeted pilot projects to assist them. IRCC plans to adjust its cost-of-living requirement every year to keep up with Statistics Canada‘s low-income cut-off (LICO).

LICO represents the minimum necessary income required in Canada to ensure that individuals do not need to spend a higher-than-average portion of their income on basic necessities.

In other words, the costs of living in Canada are closely linked to the financial requirements for international students, which will be adapted to yearly changes in the LICO to ensure that the cost-of-living requirement accurately reflects Canadian economic reality.

Cost of studying in Canada vs. other global destinations
Starting January 1st, 2024, there will be an increase in the cost-of-living requirement for international students in Canada. This adjustment brings the Canadian standards more in line with those of other popular study destinations like New Zealand and Australia, making it more competitive in the global education market. It’s essential to note that while this change positions Canada competitively, the new requirement will be higher compared to some other countries.

It costs about $21,826 CDN to study in Australia, $20,340 CDN to study in New Zealand, and $15,680 CDN to $20,447 CDN to study in England. Starting January 1st, 2024, Canada’s cost-of-living requirement for international students will increase, making it more aligned with study destinations like New Zealand and Australia. However, it remains competitive globally, though higher than some countries like France, Germany, and Denmark, which have lower living expense requirements.

In spite of these differences, Canada consistently ranks among the top destinations for international students, as evidenced by IDP Education’s Emerging Futures study conducted in March 2023. Out of four major destinations countries – Canada, the United States, Australia, and the United Kingdom – over 25% of survey respondents selected Canada to study abroad.