Canada Increased the Cost-of-Living for International Students: What You Need to Know

Canada is one of the most welcoming countries in the world when it comes to international students. However, if you’re applying for a study permit in Canada, you want to make sure that you have enough money to cover your living expenses for the duration of your stay. That’s why Canada has recently made some big changes to the cost of living requirements for students applying for study permits. The country is set to more than double the official cost of living in Canada as per recent developments in the international students in Canada news. These changes will take effect January 1, 2024. The Canadian government has raised the cost-of-living cap for international students from CA$10,000 to CA$20,635.
New study permit applicants in Canada will need to provide proof of income of CA$20,635, including their first-year tuition and travel costs. According to the Canadian government, this new requirement represents 75% of the low-income cut-off in Canada's urban areas. LICO (Low-Income Cut-Off) is subject to yearly adjustments based on inflation. Let’s navigate the new financial landscape that requires a deep understanding to pursue International students' academic goals while ensuring financial stability during their stay in Canada.

The Cost-of-Living Requirement to Study in Canada

Canada is seen as a great investment for international students' future. Canada has access to world-class education, cross-border experiences, and a world-class degree. Like anywhere else in the world, the cost of living for international students living in urban centres in Canada is higher than those in suburban areas. If you are planning to study in Canada, you can check our blog, which has complete details on the cost of studying in Canada. To meet the cost of living requirement, international students who are applying for a Canadian study visa can provide evidence through bank statements, GICs (Guaranteed Investment Certificates), letters of financial support from sponsors, or scholarship/award letters. According to Maria Mathai, founder and director of MMA Services, “Getting a GIC from a bank approved by the government of Canada for CA$10,000 is still a common practice. The money is distributed quarterly after the student reaches Canada.” 

Immigration and Refugees and Citizenship Minister Marc Miller said, “The purpose of this adjustment is to ensure that international students are aware of the real cost of living costs in Canada, protecting them from financial hardship and exploitation.” The CA$ 10k cost of living rule for study permits has been unchanged since the early 2000s. During studies in Canada, Living expenses include accommodation expenses, room and board expenses, food expenses, travel expenses, textbooks, weather-related expenses, and entertainment expenses.

Accommodation Cost in Canada

There are various types of accommodation available for international students in Canada, such as townhouses, dorms, shared flats, homestays, and furnished or non-furnished apartments. The average student rent in Canada is between $500 and $4000 per month, depending on what type of accommodation you choose. Students in Canada can get cheap rent by choosing studios or unfurnished apartment rentals. House rent in Canada can also be cheaper if you share your space with others. The utility expenses for international students in Canada are between $90 and $95 CAD.

The average monthly cost of Student food and other expenses in Canada is between $200 and $600 per month. For example, the cost of breakfast, lunch or dinner at a Canadian restaurant is between $10 and $15 per person per month. You can reduce your monthly food expenses in Canada by cooking meals at home and avoiding frequent dining out.‍

Food Cost in Canada

The average monthly cost of Student food and other expenses in Canada is between $200 and $600 per month. For example, the cost of breakfast, lunch or dinner at a Canadian restaurant is between $10 and $15 per person per month. You can reduce your monthly food expenses in Canada by cooking meals at home and avoiding frequent dining out.

Transportation Cost in Canada

Public transportation is the most cost-effective mode of transportation in Canada. However, automobiles remain the most common mode of transportation. It’s also important to note that air travel is widely used in Canada, as the country is large enough that cars and trains aren’t enough for some long-distance trips, particularly from coast to coast. Moreover, another cost-effective form of transportation in Canada that is becoming famous is biking to work. Cities like Halifax, Vancouver and Quebec City have 20% of their commuters biking to work. However, this percentage decreases significantly during the winter months.

Shopping in Canada

International students must be aware of shopping in Canada. After all, students need to shop for everything from books to groceries. For international students who only subscribe to a clothing subscription for new clothes, the cost may be higher or lower depending on their needs. However, the average monthly cost of clothing in Canada stands at $161.

Internet and Entertainment Costs in Canada

Internet and phones play a big part in the life of international students. Internet costs will vary significantly depending on the connection type and the speed. Internet costs in Canada will vary depending on the location, the household Canadage and the provider. Mobile phones are very convenient, but nowadays, International students need to include the cost of a mobile phone in their budget in Canada. The average phone cost in Canada is $101 per month. 
In entertainment, Canada is well known for its hockey, but there are many other things to do in Canada besides winter sports. There is a vibrant art scene, beautiful architecture, exciting live theatre, A-list festivals, casinos and clubs, nightlife, social events,, arts & crafts as a hobby, and other arts & entertainment for students. As a student, you will get access to all kinds of nightlife in Canada. Dance clubs, house parties, and more you can explore as a student. Student entertainment costs in Canada are around $80.

Impact of Revised Cost-of-Living on International Students

International students who are planning to study in Canada should be aware of the revised changes and have to meet a higher financial threshold. If students fail to meet the revised requirements, they may face difficulties in obtaining their study permit. 

Diploma-bound students are expected to see the biggest impact of the revised changes, especially those in a one-year program, as their GIC security deposit has risen significantly. On the other hand, undergraduate, Master's, and PhD students who have fully funded courses are not expected to see a significant cost increase. Due to the diplomatic tensions between India and Canada, Canada's ability to process visa applications for diploma courses has been reduced, which could affect the number of visa applications for these programs due to the higher security deposit for living expenses. However, Canada's IRCC (Immigration, Refugees and Citizenship Canada) has announced that it will waive the 20-hour per-week work limit on off-campus employment by April 30, 2024. The extension aims to provide international students more flexibility to manage their financials while studying in Canada. Therefore, it is essential for the  students to carefully evaluate their financial situation and plan accordingly in order to meet new requirements.

Impact on Indian Students by the Revised Cost of Living Expenses

Canadian dreams for Indian students are about to get a lot more expensive. Canada, which has long been a go-to destination for Indians due to its easy pathway to permanent residency and citizenship, has now doubled the cost of living requirements for international students. However, the cost of sending students to Canada is expected to increase by approximately CAD 8.91K. Now, parents are required to arrange additional funds for their children to go to Canada. Manan Gupta, Regulated Canadian Immigration Consultant, stated, “This adjustment mirrors the escalating cost of living in Canada in a more realistic way”. She added, “The government has tried to address the gap between previous financial requirements and the actual cost of living in Canada, which has increased exponentially over the past couple of years. The rise in Cost of living requirements most affected Indians as 2.26 lakh international students from India made up 40% of the total 5.5 lakh students in 2022. There are currently 3.2 lakh Indian students on student visas in Canada.

In conclusion, Canada’s decision to increase the cost of living requirements for international students by more than double from January 1, 2024, highlights the government’s desire to ensure the financial stability of international students throughout their stay in Canada. As students struggle with the increased CA$20,600 threshold, it’s important to plan ahead and understand the implications. The increased cost comes with its own set of challenges, especially when it comes to finding suitable housing. However, these international students are an integral part of the campus life and innovation that Canada has to offer. Navigating the new financial landscape requires a deep understanding of what it means to pursue your academic goals while ensuring financial stability during your stay in Canada. 

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