Saving Up to Move to Canada? Here's How Much Money You'll Need

Dreaming of a new life in the Great White North? If you're planning a move to Canada, you have no doubt been wondering how much money you should be saving up for your new life in Canada. Moving to Canada isn't just about packing your bags and booking a flight; it requires careful financial planning. The Canadian government has set specific requirements for settlement funds to ensure newcomers can support themselves upon arrival.

Before you start your journey to immigrate to Canada, it's important to understand the financial aspects of the process. This article will break down the settlement funds required for Canadian permanent residency, especially through programs like Express Entry. We'll explore how the Immigration, Refugees and Citizenship Canada (IRCC) calculates the necessary amount, what forms of proof are acceptable, and provide tips to help you prepare financially for your move to Canada.

Understanding Settlement Funds Requirements

Settlement funds, also known as "proof of funds," are financial resources that individuals or families planning to immigrate to Canada must demonstrate they possess. These funds are crucial for many Canadian immigration programs, including the Federal Skilled Worker Program and the Federal Skilled Trades Program. The purpose of settlement funds is to ensure that newcomers can support themselves and their families financially when they arrive in Canada without becoming a burden on the country's social welfare system.

The amount of settlement funds required can vary depending on several factors, including the number of family members immigrating, the specific immigration program being applied to, and the province or territory where the applicant intends to settle. These funds are intended to cover basic living expenses such as housing, food, transportation, and other essential needs until the newcomer can secure employment or establish themselves in Canada.

Why This Money is Necessary

Settlement funds are vital for applying for Canadian permanent residency. The Immigration, Refugees and Citizenship Canada (IRCC) sets out minimum requirements of funds for newcomers for two essential reasons:

To prevent newcomers from having to rely on social assistance and putting pressure on the Canadian system.
To ensure that immigrants are not forced to return to their home country because they cannot afford to stay in Canada.

The Canadian government wants the immigration process to succeed. With over a million job vacancies in Canada that need to be filled, the government is ensuring the economic future of Canada remains strong by attracting workers from all over the world to apply for permanent residency.

By requiring settlement funds, the Canadian government aims to ensure that newcomers can contribute to the economic system and become functional members of Canadian society. These funds help immigrants cover initial expenses such as renting a house, buying a car or paying for public transport, getting groceries, and more.

Programs That Require Proof of Funds

Several Canadian immigration programs require proof of funds. Below are the main programs that mandate this requirement.

Federal Skilled Worker Program (FSWP)

The Express Entry's Federal Skilled Worker Program (FSWP) is one of the pathways to Canadian permanent residency for skilled individuals who wish to live and work in Canada. Applicants are required to demonstrate that they have sufficient settlement funds to cover their initial living expenses in Canada until they secure employment.

Federal Skilled Trades Program (FSTP)

Similar to the FSWP, the Federal Skilled Trades Program also mandates proof of funds for applicants. It is designed for individuals with specific trade skills and experience and aims to address Canada's skilled labor shortages.

Things to Note

Some programs do not require proof of funds. For example, if you're applying under the Express Entry's Canadian Experience Class (CEC), you won't be required to show proof of funds. The CEC is tailored for individuals who have already gained skilled work experience in Canada and are assumed to have already established themselves financially.

If you are authorized to work in Canada and have a valid job offer, you may not need to provide proof of funds, even if you initially applied under the FSWP or FSTP. A valid job offer indicates that you have secured employment in Canada, significantly reducing the likelihood of becoming financially dependent on government resources.

Calculating the Required Amount

Understanding the financial requirements is crucial. The amount of settlement funds you'll need depends on various factors, and having a clear picture of these can help ensure a smooth transition. Below are some key considerations to keep in mind when calculating the required amount.

Factors Affecting the Required Amount

Your Family Size

When calculating the settlement funds needed to move to Canada, several factors come into play. The primary factor is the size of your family. This includes yourself, your spouse or common-law partner, your dependent children, and your spouse's dependent children. It's important to note that you must include all family members in the calculation, even if they are Canadian citizens, permanent residents, or not planning to come to Canada with you.

Your Chosen Pathway to Canada

Another factor is the specific immigration program you're applying under. Different programs may have varying requirements for settlement funds. For instance, the FSWP and FSTP have specific fund requirements, while, as mentioned above, the CEC does not require proof of funds.

Your Province of Choice

The province or territory where you intend to settle can also influence the required funds. This is because the cost of living can vary significantly across different regions in Canada.

Current Minimum Fund Requirements

IRCC updates the minimum settlement fund requirements annually, based on 50% of the low-income cut-off totals. As of the latest update, here are the current minimum fund requirements for those applying to immigrate to Canada through Express Entry programs like FSWP and FSTP:

Number of People	Funds Required (in Canadian dollars)
For a Single person	14,690 CAD
For a Family of two	18,288 CAD
For a Family of three	22,483 CAD
For a Family of four	27,297 CAD
For a Family of five	30,690 CAD
For a Family of six	34,917 CAD
For a Family of seven	38,875 CAD

Note that for families with more than seven members, an additional 3,958 CAD is required for each extra family member. It's important to keep in mind that these figures represent the minimum amounts. If you have more funds available, it's advisable to list the full amount in your profile or application to ensure you meet the financial requirements for immigrating to Canada.

How to Calculate For Your Family Size

To calculate the required amount for your family size, follow these steps:

Step 1: Determine Your Family Size

Count yourself, your spouse or common-law partner, and all dependent children, including those who may not accompany you to Canada.

Step 2: Refer to the Current Minimum Fund Requirements Table

Find the row that corresponds to your family size.

Step 3: Note the Amount Listed

This is the minimum amount of settlement funds you must demonstrate.

Step 4: Consider Your Actual Financial Situation

If you have more funds than the minimum required, include the total amount in your application.

Remember, these funds must be readily available and not borrowed from another person. You'll need to provide proof of these funds through official letters from banks or financial institutions where you hold accounts. These letters should include account numbers, current balances, and average balances over the past six months.

By accurately calculating and demonstrating the required settlement funds, you'll be better prepared to move to Canada and increase your chances of a successful immigration process through Express Entry or other eligible programs.

Acceptable Forms of Proof

It's essential to provide the correct proof of settlement funds to demonstrate your financial ability to support yourself and your family. Below are the acceptable forms of proof and the specific requirements you need to meet.

Official Bank Letters

When applying to immigrate to Canada, you must provide official letters from banks or financial institutions where you hold accounts. These letters serve as proof of your settlement funds and must meet specific requirements set by IRCC.

The official bank letters should be printed on the financial institution's letterhead and include the following information:

The bank or institution contact details (address, phone number, and email address)
Your full name
A list of all your current bank and investment accounts
Account numbers for each account
The date each account was opened
Current account balances
Average balance for the past six months
Any outstanding debts, such as credit card debts and loans

You must ensure that these letters are up-to-date and accurately reflect your financial situation when you apply for Canadian permanent residency. The IRCC may verify the information provided, so make sure all details are correct and consistent across all documents.

Investment Accounts

In addition to bank accounts, you can also use investment accounts to show proof of funds when applying to move to Canada. These may include:

Stocks
Bonds
Mutual funds
Certificates of deposit (CDs)
Other liquid assets

When using investment accounts as proof of funds, you must provide official statements or letters from the financial institutions managing these investments. These documents should include similar information to bank letters, such as account numbers, current balances, and average balances over the past six months.

The funds in your investment accounts must be readily available and easily liquidated. The IRCC wants to ensure you can access these funds quickly upon arrival in Canada to support yourself and your family.

Restrictions on Fund Sources

While proving your financial capacity is crucial for immigrating to Canada, there are certain restrictions on the sources of funds that can be used. Here are some key points to keep in mind.

Borrowed Funds

You cannot use money borrowed from another person as proof of settlement funds. The IRCC requires that the funds be your own and not subject to debt or financial obligations to others.

Home Equity

You cannot use the equity in your home as proof of settlement funds. While real estate may be a valuable asset, it needs to be considered liquid enough for the purposes of settling in Canada.

Joint Accounts

If you're moving to Canada with your spouse or common-law partner, you can count money held in joint accounts. However, if you're using an account solely in your partner's name, you must prove that you have legal access to these funds.

Availability of Funds

Your settlement funds must be readily available both when you apply and when a permanent resident visa is issued (if your application is approved). This means you should be able to access and use these funds without significant restrictions or delays.

Proof of Legal Access

You must demonstrate to immigration officials that you have legal access to the funds when you arrive in Canada. This is particularly important if you use accounts or investments in another country.

Family Size Consideration

Remember that you must be able to cover the costs of living for your entire family, including those who may not be accompanying you to Canada. The IRCC takes into account your total family size when assessing your financial readiness.

FAQs

Do I Need to Inform Anyone if I'm Bringing More Than a Certain Amount of Money into Canada?

Yes, when you arrive in Canada, you must inform the border officer if you are bringing more than 10,000 CAD. If you fail to declare amounts over this limit, you may face a fine, and your funds could be seized.

What Types of Funds do I Need to Declare if They Exceed 10,000 CAD?

You need to declare not only cash but also certain financial documents, such as:

Documents showing property or capital payable to you, including stocks, bonds, debentures, and treasury bills.
Documents guaranteeing payment of a set amount of money payable to you, including bank drafts, cheques, money orders, and travelers' cheques.