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4 min read
Before moving to Canada, you'll have to ensure you have enough funds. Settlement funds are the suggested minimum amount of money to have on hand to support yourself and your family while you adjust to life in Canada. Many immigration programs require you to have a minimum amount of money in the bank or as an investment to live in Canada. Having a good amount of money to support yourself is a critical part of applying for permanent residency in Canada
Let’s break down What are Settlement Funds and Why Do You Need Them for Canada PR?
What are Settlement Funds?
The amount of money you require depends on how many dependents you have. The table below shows how much money you need if you're applying for an immigration program such as the Federal Skilled Worker Program without a job offer:
| Settlement Funds Required 2022 | |
|---|---|
| Number of Family Members | Funds required (CAD) |
| 1 | $13,310 |
| 2 | $16,570 |
| 3 | $20,371 |
| 4 | $24,733 |
| 5 | $28,052 |
| 6 | $31,638 |
| 7 | $35,224 |
| Every additional family member | $3,586 |
You must provide proof of funds to be eligible for Canada PR (permanent residency). There are various ways you can submit proof of funds.
Proof of Funds
Proof of funds should always be official letters from authorized bodies, for example, your bank or a financial institution, explaining where you are holding your money. These letters, such as bank statements, must have
- the financial institution’s letterhead
- important contact information such as their address, telephone number and email address
- your name
- outstanding debts such as credit card debts and loans
- all current bank and investment accounts
- dated account numbers
Additionally, if you use multiple financial institutions, you would need to get a statement from each of your suppliers to showcase a holistic overview of your finances.
Regulations of Settlement Funds
You must also meet certain requirements for the money you use to apply for Canada PR to be admissible.
- When you apply, and if you are granted a permanent resident visa, the funds must be readily available; that is, you can directly access them.
- You'll have to show the immigration official you have legal access to the funds when you arrive.
- You must be able to cover the costs of living for your entire family, including those who will not accompany you.
- You can count your money in a joint account if your spouse is coming.
- If you're using an account in their name solely, you'll need to show that you have access to the funds.
- You won't be able to borrow this money from someone else.
- You won't be able to use the equity in your home as proof of settlement funds.
Why do You Need Settlement Funds?
Settlement funds are vital for applying for permanent residency in Canada. They're not only meant to be used to survive in a new country but to be able to flourish. The immigration authority of Canada, Immigration, Refugee and Citizenship Canada (IRCC), sets out minimum requirements of funds for newcomers for two essential reasons:
- So that you do not have to rely on social assistance and put pressure on the Canadian system
- So that you are not forced to return to your home country because you cannot afford to stay
The Canadian government wants your immigration process to succeed. There are over a million vacancies in Canada that need to be filled. By pulling in workers from all over the world to apply for permanent residency, the government is ensuring the economic future of Canada remains strong.
To be a functional member of Canadian society, you must contribute to the economic system. By ensuring you have enough money to settle in Canada, you'll be able to do this by, for example, renting a house, buying a car or paying for public transport, getting groceries, and more.
Make a list of all the potential expenses you may have in Canada in the first few months after arriving. Include administrative costs, living costs, transport costs and even entertainment costs. While Canada may be an expensive country compared to yours, relate the funds you will need to how much you will potentially earn in Canada when you find a job. Settlement funds will help you live comfortably until you do so.
The Express Entry Route is not the only way to immigrate to Canada, nor is it the only system that requires you to send through proof of funds. For example, the start-up and investor streams have various monetary requirements, not only capital to start a business but personal settlement funds while your business grows.
Here is an example what you would need settlement funds for:
| Possible Spending in Canada | |
|---|---|
| What you should budget | Funds required (CAD) |
| Monthly Bus Pass | $100 |
| Basic Utilities Electricity, Heating, Cooling, Water, Garbage | $173 |
| Rent | $1,557 |
| Internet | $81 |
Settle in Canada
If you're applying for permanent residency in Canada through an economic immigration program, check the program's rules to see if you'll need to show proof of settlement monies. Also, ensure you understand what you'll need to show that you have the financial means to sustain yourself.
If you need assistance with applying for permanent residency, get in touch with us today for guidance. The team of Regulated Canadian Immigration Consultants (RCICs) can assist you in understanding exactly what are Settlement Funds. They can consult you on what documents you need to prove you have enough money to move to the Great White North.
FAQs
Do I need to prove Settlement Funds if I have a job offer?
Federal Skilled Worker candidates are not needed to provide proof of sufficient settlement funds if they have a legal offer of arranged employment in Canada and are presently working in Canada. At the same time, they are authorized to work in the country. Additionally, candidates in the Canadian Experience Class (CEC) are not required to present proof of financial support for themselves or their family members.
Can I bring money into Canada?
You can and should bring money into Canada with you. However, if you bring in more than $10,000 in cash, you must declare it in customs. Additionally, Canada will allow the following into the country:
documents that highlight property or capital payable
- stocks
- debentures
- bonds
- treasury bills
documents that guarantee payment of a specific amount of money
- bankers’ drafts
- cheques
- travelers’ cheques
- money orders
How is the minimum settlement fund calculated?
Every year, the Canadian government adjusts the minimum amount you'll need depending on 50% of the low-income cut-off totals. It would help if you looked into the cost of living in the area where you intend to reside in Canada. Bring as much cash as possible. This will make it easy to relocate to Canada and find a home.
