Proof of Funds: All You Need To Know

What Is Proof of Funds?

Money will be a huge factor in your migration to Canada, as it always is with significant events.One way to prove you have enough money to settle in Canada is to present proof of funds. Once you receive an invitation to apply (ITA), you will need to provide documentation proving you have the necessary funds. To demonstrate to Canadian Immigration that you can support yourself and any accompanying dependents throughout your time of settlement in Canada, you will require proof of funds. They’ll need official, credible documentation of your approach to handling this.

This fund, sometimes referred to as a settlement fund, is necessary for your application for permanent residence. With the help of these funds, you’ll be able to settle into the country of maple leaves with ease and succeed. Immigration, Refugees and Citizenship Canada (IRCC) states that this is necessary to ensure your ability to live independently of the Canadian government. Canada, which reportedly has over a million open jobs, is in dire need of your abilities and you will need to contribute financially in order to be able to play a part in the society.

Ways To Show Proof of Funds?

Here are some of the ways to show proof of funds:

Shares
Bonds
Bank balance
Mutual funds
Treasury bills
Certificate of deposits
Savings accounts

How To Submit Proof of Funds?

A thorough history of your transactions must be displayed in the fund statements in their bank account, preferably spanning the final three months prior to the submission.
An official letter from your financial institution including the immigrant’s phone number, email address, and residential address should be submitted.
Your name and personal details should also be included in the letter.

The following bank account details should be submitted:

Date of the bank account’s opening
Number of Bank Account
The amount that is currently on your account
The average amount in your account during the last six months
Enumerate all of your outstanding loans and credit card debt.
If you have deposited the money, you may also present multiple official letters as proof of your proof of funds.

How Much Is Enough?

It’s possible to find yourself thinking that you don’t have enough money as proof of funds. Fortunately, the figure you’ll need to present is dependent on the number of people it’ll be supporting. First, you must determine the size of your family in order to determine how much money will be sufficient. They can include yourself, your spouse or in-law, your children that are dependent on you (children aged 22 and under are considered dependents by the Canadian government), then they should be included in this calculation. Even if they are Canadian citizens, they still need to complete this. The minimum settlement funds required for immigration to Canada as of April 2023 are as follows:

Number of Family Members	Proof of funds required
You alone	$13,757
You and your spouse (2)	$17,127
3	$21,055
4	$25,564
5	$28,994
6	$32,700
7	$36,407
For every additional family member	$3,706

Who Needs To Show Proof of Funds for Express Entry?

Not every application for Express Entry must provide financial documentation. Still, if you’re seeking for permanent residence through any of the following Express Entry programs, you’ll need to provide sufficient evidence of settlement funds:

The Federal Skilled Worker (FSW) program is intended for highly qualified individuals who have studied and worked abroad and who want to establish a permanent home in Canada.
Federal Skilled Trades Program (FSTP): This program is intended for skilled workers who wish to permanently move to Canada and have prior job experience abroad.

Who Does Not Need To Show Proof of Funds For Express Entry?

The Canadian Experience Class (CEC) program of Express Entry does not need you to submit proof of settlement money if you are applying for permanent residence. Only those with at least a year’s worth of work experience in Canada are eligible to apply under CEC. It is presumed that you are already a resident of this country if you are applying under this program.

Applicants for the Federal Skilled Worker (FSW) and Federal Skilled Trades Program (FSTP) who are permitted to work in Canada and have a legitimate employment offer are also exempt from the evidence of funding requirement.

How Do You Get Proof of Funds Letter for Express Entry?

To get letters of proof of finances necessary for immigration to Canada, you will need to get in touch with your banks or other financial institutions. You can ask financial institutions in your home country to issue a proof of funds letter with the necessary details by going in person to a branch, calling, or emailing a bank representative. If necessary, you can provide a template for them to utilize or clarify the details that must be included in the letter.

Can Gift Money Be Used To Show Proof of Funds For Express Entry?

If you’re applying for immigration to Canada, you might be able to use the money you got from parents, spouses, or siblings as evidence of settlement funds. But you ought to be able to demonstrate that the funds are a gift rather than a loan. You must submit your PR application along with the necessary supporting documents such as:

A notarized gift deed that includes the donor’s tax information, the name and address of the person donating the funds, the amount being given, the date and method of the gift (cash, check, bank transfer, etc.), and the amount being gifted. It should also make it clear that the money is a gift and that they won’t take it back from you in the future.
An affidavit l attesting to the details in the gift deed and stating that the donor has paid taxes on the gifts is required.
A letter of explanation from you to give more details on where your settlement money came from. You need to specify in this letter how much money you were given as a present and who gave it to you. Don’t forget to provide your contact details.

It may be more difficult to persuade the IRCC officer if you have received money as a gift from a friend or distant relative, so be sure to include a justification in your letter of explanation.

Proof of Funds As A Student

In order to qualify for a student visa, a foreign or international student must provide documentation of sufficient finances or evidence of encumbered monies in their bank account. This differs for both the Student Direct Stream (SDS) and the Non-Student Direct Stream (Non-SDS).

Proof of Funds for Student Direct Stream (SDS)

If you are enrolled in the Student Direct Stream must submit a Guaranteed Investment Certificate (GIC) along with their tuition costs for the first year.

POF for Non-Student Direct Stream (SDS)

In order to be enrolled through the Non-Student Direct Stream, a student must pay the first term or semester fee and provide documentation of their living expenditures.

Required Documents For Proof of Funds for Students

If you come to Canada for academic purposes, you must be able to provide documentation of the money in their bank accounts. You should be able to demonstrate their proof of funding by having:

A Canadian bank account in their name, if they have moved money into Canada.
An investment certificate (GIC) guaranteed by a financial institution located in Canada.
Evidence of a bank loan for schooling or students Bank statement for the last four months
Evidence of their payment for housing or tuition
Documentation of money paid from within Canada if they are receiving scholarships or financing from a Canadian educational program.

Conclusion

It might be costly to relocate to Canada, particularly if you’re leaving a nation with a low cost of living. The government’s requirement for verification of settlement funds makes ensuring that immigrants have enough cash on hand to pay for necessities during their initial few months of residency. However, depending on the province or location you choose to settle in, the cost of living in Canada might vary greatly. Even if the amount exceeds the required settlement money for immigration, it is advised that you estimate your monthly expenses and carry enough cash to cover your first six months at the very least.