Proof of Settlement Funds for Express Entry: Understanding Canadian Immigration Requirements

People worldwide find Canada an attractive destination to settle in and experience its vibrant life. The country welcomes millions annually to fill job vacancies and contribute to developing its economy. The country has opened numerous immigration pathways for people to explore and enter Canada legally. One of the most suitable pathways is Express Entry, allowing quicker entry for skilled candidates.

The process follows a streamlined procedure and demands supporting documents. Proof of settlement funds is significant in determining candidates’ eligibility to compete in the Express Entry stream.

This blog studies the importance of settlement funds, and the essential proof immigrants must provide when applying for Canadian PR.

What Qualifies as Proof of Settlement Funds?

The proof of settlement funds acts as physical proof that applicants can finance themselves and their families upon their arrival in Canada. It is an essential document that needs to be provided, especially under programs like the Federal Skilled Worker Program (FSWP) and the Federal Skilled Trades Program (FSTP). Any records from the following qualify as valid proof of settlement funds:

• Savings and Checking Accounts: Savings or checking account statements issued in your or your spouse’s name (in case of joint accounts). 
• Investments: Easily cashable investments. For instance, GICs (Guaranteed Investment Certificates) or stocks. 
• Bank Drafts or Letters of Credit: Bank documents issued by financial institutions show liquid funds in the applicant’s ownership.
• Official Bank Letters: Letters authorized by bank officials or financial institutions with account details, including its type, account balance, statement over the past six months and contact information.
• Joint Accounts: Accounts held in partnership with a spouse with sufficient funds. In such cases, proof of joint ownership and access must be provided.
• Convertible Foreign Assets: If funds are available in foreign currency, applicants must ensure the amount is equal to or greater than the required Canadian dollar. 
• No Loans or Borrowed Money: The funds must be freely accessible to the applicant for settlement. It should not be borrowed from anyone else.

The above records must prove that the applicant owns or is tied to it. The funds must be readily accessible, and the amount has been untouched for at least six months. 

Necessity of Proof of Settlement Funds

Canada is very particular about welcoming financially stable immigrants to become a part of their economic progress. It is an essential document because:

• It proves the new immigrants can financially support their expenses in their initial days in Canada.
• It proves applicants are not dependent on public assistance. They can pay their house rent, buy food and commute from one place to another with their own money.
• Immigrants can comfortably settle in their new surroundings and adapt to Canadian society.
• Sufficient funds prove the applicant’s readiness to move to Canada and contribute to its growth. This makes it easy for them to attain PR per the Canadian immigration system.

Who Provides Proof of Settlement Funds?

While showing enough evidence of easily accessible funds is essential, not all applicants may be required to produce them. Proof of settlement funds is mandatory under programs like the FSWP and FSTP. However, applicants applying through the Canadian Experience Class (CEC) are exempted from this requirement. The Canadian immigration system recognized that applicants under the CEC have experience living and working in Canada. They are convinced these applicants have enough financial resources to live and work in the country.

Applicants with an in-hand job offer extended by a Canadian employer with an approved LMIA are also exempt from this requirement. To ensure whether proof of settlement funds must be provided, applicants must verify their eligibility and check requirements under each stream as mentioned in the official IRCC portal.

Estimating Settlement Funds

The required amount of funds is estimated depending on the number of family members immigrating to Canada. The Canadian government annually updates the numbers on their official immigration website. Applicants must check the latest amounts before applying. As of June, 2024, the funds estimate are:

These estimates must cover the individual and their families’ basic living expenses, which may vary depending on the cost of living in different provinces.

Verifying Proof of Settlement Funds

To prove the availability of funds, applicants require an official statement issued and verified by bank officials or financial institutions. The letter must clearly state the following:

• Name and contact information of the financial institution.
• Details of the account, including account number, account type and date it was opened.
• The current balance of the account.
• The account statement over the past six months.

This letter is essential to completing the Express Entry application, and the funds must be maintained until the immigrants reach Canada. Immigration officials might request the latest statement upon arrival.

Tips for Managing Settlement Funds for Express Entry

These tips might be helpful for applicants to ensure a smooth immigration:

1. Maintain the required funds throughout the application process.
   
2. Ensure all documents are updated and show the current financial status. Keep an explanation ready for any new deposit.
   
3. Do not make high-risk investments with your settlement funds. Maintaining a history of balanced finances can help ensure smooth immigration.
   
4. Ensure that funds available in a currency other than CAD match the value. Applicants must frequently check the exchange rates to maintain the required funds.

Common Drawbacks and How to Overcome Them

Some applicants may not be able to access available funds. This is especially true for applicants from countries with strict capital requirements or having their funds locked in as investments.

Here are some strategies to help:

1. Start saving as early as you can to reach the amount you need. Use financial planning tools to help you make efficient savings.
2. Consulting with a financial advisor regarding foreign currency exchange or liquidating assets may be helpful for some applicants.
3. Having funds deposited into multiple accounts is acceptable, provided each account is tied to you and meets the requirements.

Conclusion

Being financially sound is an essential part of qualifying under Express Entry. While not all applicants need a proof of settlement funds document, those who must provide should know what assets are considered proof of settlement funds.

In this blog, we have discussed the particulars of the proof of settlement funds document, including who must provide it, who is exempt, and the estimated amount required. While our blog can guide you through the process, understanding the Canadian immigration process can still be challenging. To avoid delays in approval and rejections, seeking help from immigration professionals such as those at ImmigrationWay can be helpful.