Moving to Canada as an international student is exciting but comes with financial challenges. From housing and food to school supplies and transportation, there’s a lot to consider when planning your budget.
International students in Canada should expect to spend between $15,000 to $25,000 per year on living expenses, depending on the city and lifestyle. We know this can seem like a big range, but costs vary greatly between places like Toronto or Vancouver compared to smaller cities.
We’ve found that most students spend the most on housing, which can take up to 40% of your monthly budget. Food, transportation, and entertainment are other major expenses you’ll need to plan for. Understanding these costs early will help you better prepare for your Canadian study adventure.
Understanding the Basics of Living Expenses
When moving to Canada for studies, knowing what expenses to expect helps with proper planning. Living costs vary across different cities and depend on your lifestyle choices.
Defining Living Expenses for International Students
Living expenses for international students include all costs beyond tuition fees. These typically cover:
- Housing: Rent, utilities, and internet
- Food: Groceries and occasional dining out
- Transportation: Public transit passes or car expenses
- Health insurance: Mandatory coverage in most provinces
- Books and supplies: Academic materials
- Personal expenses: Clothing, entertainment, and phone plans
We find that many students underestimate these costs when planning their budget. It’s important to account for both essential needs and quality-of-life expenses. Small costs like laundry, haircuts, and winter clothing can add up quickly.
Overview of Cost-of-Living in Canada
Canada’s living costs vary significantly by location. Major cities like Toronto and Vancouver are considerably more expensive than smaller cities or rural areas.
Here’s a quick comparison of monthly expenses in different cities:
| Expense | Toronto | Montreal | Halifax |
|---|---|---|---|
| Rent (shared) | $800-1,200 | $500-800 | $500-700 |
| Food | $400-500 | $350-450 | $350-450 |
| Transportation | $156 | $90 | $82 |
We’ve noticed that housing typically takes the largest chunk of a student’s budget. Many international students choose to live with roommates to reduce this cost.
The Role of Statistics Canada
Statistics Canada provides reliable data on living costs across the country. They regularly publish the Consumer Price Index (CPI), which tracks changes in the cost of goods and services.
We recommend checking their quarterly reports for the most up-to-date information. Their website features:
- Regional cost comparisons
- Inflation rates affecting student expenses
- Housing market trends
These resources help international students understand how prices vary across Canada. Statistics Canada also offers specialized data on student-relevant categories like food, housing, and transportation.
Many universities use Statistics Canada data when creating their suggested student budgets. This gives students a realistic picture of what to expect financially when studying in Canada.
Financial Requirements and Preparations
Before moving to Canada as an international student, you need to understand and prepare for various financial requirements. These preparations are crucial to ensure your study permit approval and a smooth transition to life in Canada.
Securing a Study Permit and Financial Documentation
When applying for a study permit through IRCC (Immigration, Refugees and Citizenship Canada), you must prove you can support yourself financially. As of 2025, you need to show you have at least $20,635 CAD for living expenses for one year (plus tuition fees). This amount increases if you’re bringing family members.
Required financial documents typically include:
- Bank statements showing funds available for at least 4-6 months
- Proof of tuition payment or ability to pay
- Source of funds documentation (how you obtained the money)
We recommend preparing these documents early and ensuring they’re properly translated if not in English or French. The financial requirements may seem strict, but they help ensure you’ll be comfortable during your studies.
Understanding the Guaranteed Investment Certificate (GIC)
A GIC is a financial product many international students use to meet study permit requirements. When you purchase a GIC, you deposit a lump sum (typically $10,000-$20,000 CAD) with a Canadian bank before arriving in Canada.
How GICs work for students:
- You receive a portion upon arrival to cover initial expenses
- The remaining amount is released in monthly installments
- Most GICs offer minimal interest rates
Popular banks offering student GICs include:
- Scotiabank
- CIBC
- BMO
- RBC
Setting up a GIC also helps you establish a Canadian bank account and credit history. We’ve found this system provides a structured way to manage your finances during your first year of studies.
Scholarships and Bursaries Availability
International students can access various financial support options in Canada. While competition is high, pursuing these opportunities is worthwhile.
Types of scholarships available:
- Entrance scholarships based on academic merit
- Country-specific scholarships for students from certain regions
- Field-specific awards for particular programs
- Need-based bursaries for students with financial constraints
Many Canadian institutions offer dedicated international student scholarships. Government scholarships like the Vanier Canada Graduate Scholarships provide substantial funding for graduate students.
Application deadlines typically fall 6-12 months before your program starts. We suggest researching options early and applying to multiple opportunities. Even smaller scholarships can significantly reduce your financial burden.
Exploring Student Loans and Education Loans
Unlike domestic students, international students don’t qualify for Canadian government student loans. However, other financing options exist.
Private education loans are available through:
- Banks in your home country with international education loan programs
- International student loan providers that partner with Canadian institutions
- Some Canadian financial institutions (with a Canadian co-signer)
When considering loans, watch for:
- Interest rates (fixed vs. variable)
- Repayment terms (during studies or after graduation)
- Currency exchange risks
We’ve noticed some countries offer government-backed education loans for studying abroad. Check if your home country provides such options. Creating a detailed budget before taking any loan will help you borrow only what you need.
Accommodation Costs for Students
Finding affordable housing is one of the biggest challenges international students face in Canada. Housing costs vary widely depending on location, with major cities being significantly more expensive than smaller towns.
Options for On-Campus and Off-Campus Housing
On-campus housing is a convenient option for first-year students. Residence halls typically cost between $5,000 and $10,000 for an eight-month academic year. Many universities offer meal plans that add $3,000-$5,000 to these costs.
Off-campus housing gives students more independence and sometimes lower costs. Renting a one-bedroom apartment in major cities like Toronto or Vancouver might cost $1,500-$2,500 per month. In smaller cities, the same apartment might be $800-$1,200.
Sharing accommodations is a popular money-saving strategy. We’ve found that students who share apartments or houses can reduce their housing costs by 30-50%. Many students pay $600-$900 monthly for a room in a shared house.
Some universities also help students find homestay options with local families, typically costing $700-$900 monthly including meals.
Understanding the Low-Income Cut-Off (LICO) Rates for Housing
The Low-Income Cut-Off (LICO) helps us understand reasonable housing costs in different Canadian regions. LICO rates suggest housing shouldn’t exceed 30% of your income to remain affordable.
For students, this means your monthly budget for housing should ideally be below this threshold. In 2024-2025, the LICO rates for a single person range from $25,920 in small towns to $31,272 in large cities.
Many designated learning institutions (DLIs) use LICO rates to help international students plan realistic budgets. They might require proof that you can afford housing costs above the LICO threshold.
We recommend checking housing costs in your specific destination city before arriving. University housing offices can provide valuable guidance on local housing markets and affordable options near campus.
Monthly Living Expenses Breakdown
Understanding your monthly costs is crucial for planning your budget as an international student in Canada. Let’s break down the main expenses you’ll face and how much to set aside each month in Canadian dollars.
Estimating Food and Groceries Spending
Food will be one of your biggest expenses in Canada. On average, students spend $300-$500 per month on groceries, depending on your eating habits and where you shop.
Budget-friendly grocery chains like No Frills, FreshCo, and Food Basics offer lower prices than premium stores like Whole Foods or Loblaws. We recommend checking weekly flyers for sales!
Cooking at home is much cheaper than eating out. A restaurant meal typically costs $15-$25, while home-cooked meals average $3-$6 per serving.
Try these money-saving tips:
- Buy seasonal produce
- Use student discounts (many stores offer 10-15% off on specific days)
- Purchase staples in bulk
- Plan meals around weekly sales
- Share cooking with roommates
Transportation Costs and Options
Getting around in Canada varies widely depending on your city and lifestyle. Most students rely on public transportation, which ranges from $90-$130 monthly for unlimited transit passes with a student discount.
Larger cities like Toronto, Vancouver, and Montreal have excellent public transit systems with subways, buses, and streetcars. Smaller cities may have more limited options.
Some campuses include transit passes in student fees, which can save you hundreds of dollars yearly. Check with your school!
Ride-sharing services like Uber and Lyft are available but add up quickly. For occasional use, budget $15-$30 per ride.
Biking is popular in many Canadian cities with dedicated lanes. A decent used bike costs around $100-$200 and requires no ongoing fees except maintenance.
Utilities and Other Recurring Bills
When renting, you’ll need to understand which utilities are included and which you’ll pay separately. Typical monthly costs for a shared apartment:
| Utility | Monthly Cost |
|---|---|
| Electricity | $30-$50 per person |
| Heating | $30-$80 per person (higher in winter) |
| Water | $20-$30 per person |
| Renter’s insurance | $15-$25 per person |
Costs vary significantly by province, season, and consumption habits. Winter heating bills in provinces like Alberta or Quebec can be much higher than summer months.
Many students are surprised by these extra costs! Always ask your landlord which utilities are included in your rent to avoid unexpected expenses.
Phone Plan and Internet Expenses
Mobile phone plans in Canada are relatively expensive compared to many other countries. Basic plans start around $45-$60 monthly with limited data.
Popular providers include:
- Rogers
- Bell
- Telus
- Freedom Mobile (cheaper but less coverage)
Budget carriers like Public Mobile, Chatr, and Lucky Mobile offer more affordable options starting at $25-$40 monthly but with slower data speeds.
For home internet, expect to pay $50-$80 per month for reliable high-speed service. Splitting this cost with roommates makes it more affordable.
Many providers offer student discounts, so always ask! We recommend checking comparison sites like WhistleOut or PlanHub to find the best deals.
Additional Expenses to Consider
Beyond housing and tuition, international students in Canada face several other important costs. These additional expenses can significantly impact your monthly budget and overall financial planning.
Clothing and Personal Care
Canada’s weather varies dramatically with the seasons, so you’ll need appropriate clothing for each one. Winter gear is especially important – a good quality winter coat can cost $150-300, while boots might run $80-150. Don’t forget about hats, gloves, and scarves too!
We recommend shopping during sales or at thrift stores to save money. Many cities have second-hand shops where you can find quality items at lower prices.
Personal care items like toiletries, haircuts ($20-50), and laundry ($2-5 per load) add up quickly. Many students budget around $50-100 monthly for these necessities.
Pro tip: Look for student discounts at local stores and salons! Many offer 10-15% off with a valid student ID.
Entertainment and Leisure Activities
Balancing studies with fun is important for your well-being. Movie tickets typically cost $12-15, while restaurant meals range from $15-30 per person.
Free or low-cost activities include:
- Campus events and clubs
- Public libraries and parks
- Student discount nights at local venues
- Hiking and outdoor activities
Many museums and galleries offer free admission on certain days. We’ve found that setting aside $100-200 monthly for entertainment helps create a sustainable balance.
Student associations often organize affordable trips and events. These are great opportunities to explore Canada while making friends!
Health Insurance Requirements
Health insurance is mandatory for international students in Canada. Most provinces require you to enroll in their health insurance plans:
- British Columbia: BC Medical Services Plan ($75/month)
- Ontario: University Health Insurance Plan (UHIP) (approximately $720/year)
- Quebec: Régie de l’assurance maladie du Québec (RAMQ)
These plans typically cover basic medical services, but may not include dental, vision, or prescription medications. We recommend purchasing supplementary insurance for these services.
Some universities include health insurance in student fees. Check with your school’s international student office about coverage details and enrollment procedures.
Don’t skip this expense! Unexpected medical costs without insurance can be extremely high in Canada.
Working While Studying
Many international students balance their studies with part-time work in Canada. This opportunity not only helps with living expenses but also provides valuable Canadian work experience.
Exploring Off-Campus Work Opportunities
International students with valid study permits can work up to 20 hours per week during regular academic sessions. During scheduled breaks like summer vacation, you can work full-time. This policy gives you flexibility to earn money while focusing on your studies.
Common jobs for students include:
- Retail positions in stores and shopping centers
- Food service in restaurants and cafes
- On-campus jobs like library assistant or research aide
- Administrative roles in offices
- Customer service positions
Your study permit usually serves as your work authorization. No separate work permit is needed for most part-time jobs. We recommend checking job boards at your school, as they often list student-friendly positions.
Post-Graduation Work Permit Insights
After completing your program, you can apply for a Post-Graduation Work Permit (PGWP). This valuable permit allows you to gain Canadian work experience for up to 3 years, depending on your program length.
Key PGWP facts:
- Programs 8 months to 2 years = Permit length matches study time
- Programs 2+ years = Maximum 3-year permit
- Must apply within 180 days of receiving final grades
- Requires full-time student status during studies
This permit opens doors to permanent residency pathways through programs like Express Entry. Many employers value international graduates with Canadian education and work experience.
Understanding the Impact on Student Budgeting
Working while studying can significantly reduce financial pressure. A part-time job at minimum wage (varies by province, $13-$16/hour) can provide $800-$1,300 monthly working 20 hours weekly.
This income helps with:
- Rent payments (can cover 30-50% of housing costs)
- Groceries and meals (potentially covering all food expenses)
- Transportation costs (bus passes, occasional taxis)
- Entertainment and social activities
We recommend creating a flexible budget that includes your potential work income as supplementary rather than primary funding. Some months may offer fewer hours, especially during exam periods when studies should take priority.
Work experience also adds value beyond money – you’ll build your resume, develop professional connections, and improve your English or French skills in real-world settings.
Long-Term Financial Planning
Moving beyond day-to-day expenses, international students need to consider their financial future in Canada. Smart planning can create opportunities for staying in Canada after graduation while protecting you from financial hardships.
Pathways to Permanent Residence After Graduation
Many international students hope to stay in Canada after completing their studies. The Post-Graduation Work Permit (PGWP) is your first stepping stone, allowing you to work in Canada for up to three years.
Working after graduation helps you gain Canadian experience, which is valuable for permanent residence applications. Programs like Express Entry and Provincial Nominee Programs often favor candidates with Canadian education and work experience.
We recommend starting your PR planning early. Save important documents, maintain good financial records, and build credit history while studying. Some provinces have special immigration streams for international graduates.
The financial requirements for permanent residence applications include proving you have enough funds to support yourself. In 2025, a single applicant typically needs about $14,000 in settlement funds, though this varies by program.
Student Vulnerability and Financial Management
International students can face unique financial challenges that make them vulnerable.
Common financial risks include:
- Unexpected tuition increases
- Exchange rate fluctuations
- Employment limitations
- Emergency costs without family support nearby
Building an emergency fund covering 3-6 months of expenses provides essential protection. We suggest saving at least $3,000-$5,000 for unexpected situations.
Student loans can be helpful but require careful management. Unlike domestic students, international students have limited access to government loans and often rely on private lenders with higher interest rates.
Consider joining student groups that support international students. They often share valuable money-saving tips and sometimes provide emergency assistance.
Adjusting to Canadian Banking and Saving
Opening a Canadian bank account is essential for managing your finances while studying here.
Benefits of a Canadian bank account:
- Easier tuition payments
- Reduced currency conversion fees
- Building Canadian credit history
- Access to student banking packages
Many banks offer student accounts with reduced or waived monthly fees. TD, RBC, and Scotiabank have specific international student packages that include services like unlimited transactions and no-fee international money transfers.
Start building your credit history early by getting a secured credit card. Use it for small purchases and pay it off monthly to establish good credit.
Tax-Free Savings Accounts (TFSAs) can be useful savings tools if you become a tax resident of Canada. They allow your investments to grow tax-free.
Education and Immigration Resources
International students need to navigate various requirements when studying in Canada. We’ve gathered essential information about permits, programs, and institutions to help you plan better.
Comprehensive Guide on Immigration and Study Permits
Most international students need a study permit to attend school in Canada. You must apply for this permit before coming to Canada. The Immigration, Refugees and Citizenship Canada (IRCC) processes these applications.
The application fee is $150 CAD, and processing times vary by country. We recommend applying at least 3-6 months before your program starts.
You’ll need these documents for your application:
- Acceptance letter from a designated learning institution
- Valid passport
- Proof of financial support (about $10,000 per year plus tuition)
- Police clearance certificate
- Medical exam results
Remember that a study permit isn’t a visa. You may need a visitor visa or electronic travel authorization (eTA) to enter Canada.
Navigating the International Student Program
The International Student Program creates pathways for students to study in Canada. This program has many benefits beyond education.
After graduation, you can apply for a Post-Graduation Work Permit. This allows you to work in Canada for up to 3 years depending on your program length.
Working while studying is possible too! You can work up to 20 hours per week during school terms and full-time during scheduled breaks.
Canadian work experience can help if you later apply for permanent residence through programs like:
- Express Entry
- Provincial Nominee Programs
- Canadian Experience Class
Many provinces offer healthcare coverage for international students, though benefits vary. We suggest checking your province’s policies early.
Distance Learning and its Financial Implications
Distance learning has become more popular but has specific rules for international students. Not all online programs qualify for study permits or post-graduation work permits.
If you’re taking online courses from your home country, you won’t need a study permit. This can save on living expenses but may affect future immigration opportunities.
For programs with both online and in-person components, you’ll need a study permit for the in-person portion. The IRCC has special provisions for COVID-related distance learning scenarios.
Financial considerations for distance learning include:
- Lower living costs if studying from home
- Potential savings on transportation
- Possibly different tuition rates for online programs
- Technology expenses for reliable internet and equipment
Some scholarships are specific to in-person learning, so check eligibility requirements carefully.
The Relevance of Designated Learning Institutions
Designated Learning Institutions (DLIs) are schools approved by provincial governments to host international students. Only DLIs can issue acceptance letters needed for study permits.
We maintain a list of all DLIs on the IRCC website. Always verify a school’s status before applying.
Benefits of attending a DLI include:
- Eligibility for work permits during and after studies
- Access to immigration pathways
- Quality assurance through government oversight
- Recognition of credentials by employers
Different types of DLIs include universities, colleges, CEGEPs (in Quebec), and some private institutions. Tuition varies widely between these options.
Public colleges often offer lower tuition than universities while still providing quality education. Many private institutions specialize in specific fields but may charge higher fees.
