When applying for permanent residence in Canada, certain applicants must demonstrate they have sufficient settlement funds to cover essential living costs until they can secure employment. However, this requirement doesn’t apply to everyone under Canada’s Express Entry system. Here's an in-depth look at who needs to show proof, the required amounts, and how to meet the criteria.
Applicants under the Canadian Experience Class (CEC) category are exempt from showing proof of funds. If you are applying under this category and are prompted to upload proof, you can instead upload a note explaining the exemption.
For those applying under the Federal Skilled Worker Program (FSWP) or Federal Skilled Trades Program (FSTP) and not currently working in Canada, proof of funds is generally mandatory. However, if you are legally employed in Canada and hold a valid job offer, you do not need to show settlement funds, provided these conditions are met at the time of application and approval.
Candidates in the Provincial Nominee Program (PNP) may also need to demonstrate proof of funds if applying through a provincial Express Entry stream. Whether you need to show funds depends on your eligibility under CEC, FSWP, or FSTP, and the same rules apply.
The amount of settlement funds required depends on the size of your family. As of May 6, 2024, the minimum amounts are:
| Family Size | Funds Required (CAD) |
| 1 | $14,690 |
| 2 | $18,288 |
| 3 | $22,483 |
| 4 | $27,297 |
| 5 | $30,690 |
| 6 | $34,917 |
| 7 | $38,875 |
| Each additional member | $3,958 |
Ensure these funds are available at the time of application submission and when landing in Canada.
Applicants must obtain a detailed letter from their financial institution(s) listing all accounts, investments, and debts. This letter should:
Submitting six months of bank statements alone is not recommended. IRCC may reject such applications as incomplete if the official letter is not included, even if the statements show adequate funds.
If your bank cannot provide a letter meeting IRCC’s requirements, explain this in your application. Include any alternative documentation the bank can provide, such as statements, and additional evidence showing you meet the settlement fund criteria. It’s crucial to attempt compliance and document your efforts to minimize the risk of rejection.
IRCC’s regulation focuses on unencumbered funds—money that is readily accessible and not tied to debts or obligations. Having debts, like student loans or mortgages, does not disqualify you as long as you have sufficient unencumbered funds to meet the required amount. Officers sometimes confuse this distinction, but applications can be approved with proper explanations and documentation.
Funds don’t need to be in Canadian dollars or held in Canadian banks, but they must be liquid and accessible. If your money is held in foreign currency, monitor exchange rates to ensure the value meets the threshold at all times during processing. To avoid complications, consider maintaining an excess amount.
Settlement funds cannot be borrowed but can be gifted by family or friends provided there is no obligation to repay. If using gifted money, ensure the documentation clearly shows it is a gift and not a loan.
If your family size changes during processing, such as adding a spouse or child, you must update your application and demonstrate additional funds as required. Spousal savings or joint accounts can contribute to the settlement funds.
Non-liquid assets such as real estate, vehicles, or fine art, as well as investment accounts like stocks, do not qualify. Retirement savings may be used if they are immediately accessible.
Proof of funds must be valid both at the time of application and when landing as a permanent resident. Ensure consistency in maintaining the required balance throughout the process to avoid complications.
Settlement funds ensure applicants can cover living costs before employment in Canada. While exemptions apply to certain categories, most require proof through official bank letters showing unencumbered, liquid funds. Adequate preparation, proper documentation, and monitoring of currency fluctuations are vital for success. Changes in family size and gifted money also influence requirements, making careful compliance essential for approval.
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