Are you thinking of immigrating to Canada with your spouse and family? Then you need to know everything about IRCC Settlement Funds. Moving to a new country is a beautiful experience, especially in a country like Canada.
Applicants seeking to immigrate to Canada must show that they can financially support their resettlement in Canada. In this article, we’ll talk about how to calculate the IRCC settlement funds needed for singles, couples, and family applicants. Relax and read everything!
In this article
What are Settlement Funds?
Applicants applying for Canadian permanent residency under the skilled federal worker and federal trades’ classes need proof of funds to show they are financially capable of establishing themselves in Canada. It is one of IRCC PR requirements.
Suppose you’re immigrating to Canada with an accompanying spouse or common-law partner. In that case, you can include the money you have together under a joint account as your IRCC settlement funds. Assuming your accompanying spouse or common-law partner has cash in their accounts, you can use it too. Although, it’s crucial to possess written proof that you have access to the money.
You’ll need it as soon as you get an Express Entry Invitation To Apply (ITA) issued by Immigration, Refugees, and Citizenship Canada (IRCC).
What is the processing time for obtaining Canada Permanent Residency?
The average IRCC processing timeline for a Canada PR visa is five to eight months. However, in some extreme cases, it may extend to twenty-six months.
What are IRCC PR application fees? As of April 30, 2022, the application fee for a single person is $850, and the right of permanent residence fee is $515. At the same time, the cost for including a dependent child is $230 per child.
How much money will you need?
The amount of money you’ll need depends on the type of applicant you are. For example, if you’re a single applicant, you’ll need $13,310. However, if you’re a family applicant, it’ll be calculated based on the number of dependents you have.
Listed below are the amounts you’ll need if you’re applying for an immigration program such as the Federal Skilled Worker Program without being employed:
Number of Family Members Funds required in Canadian Dollars
One $13,310
Two $16,570
Three $20,371
Four $24,733
Five $28,052
Six $31,638
Seven $35,224
Every additional family member costs $3,586
It’s important to note that the requirements for settlement funds are updated annually. Therefore, the above information is in effect beginning from June 9, 2022.
What is acceptable as proof of funds?
Anytime you present your IRCC settlement funds, an immigration officer will check if you have access to the money when applying. Furthermore, the officer will check if your permanent resident visa application is successful.
The proof of funds must be in the form of an official letter from authorized bodies such as your bank or financial institution. It’ll explain where you’re holding your money and prove access to funds. It must include the following information;
- The financial institution’s letterhead
- Significant contact information such as their address, telephone number, and email address
- Your name
- Total outstanding debts such as credit card debts and loans
- Correct Account numbers and date of opening
- all current bank and investment account details with a current balance
- Your average account balance for the past six months
Furthermore, suppose you have accounts with multiple financial institutions. In that case, you’ll need to get a statement from each to showcase a complete overview of your finances.
Regulations of Settlement Funds
For your IRCC settlement funds to be permissible for your Canada permanent residency, they must conform to specific rules. These include;
- Applicants applying for permanent residence visas must have readily available funds. It means you must have access to them directly.
- Then you’ll show the immigration officer that you have legal access to the funds upon entering the country.
- Furthermore, the funds must be able to cover the cost of living for your whole family. It will help if you include those that didn’t accompany you.
- Counting the money in a joint account if your spouse accompanies you is permissible.
- Assuming you’re using an account with their name solely on it, you’ll need to show that you have access to the funds.
- You can’t use the equity in your home as proof of IRCC settlement funds.
- Lastly, you won’t be able to borrow this money from another person. Stay clear of borrowing loans from banks.
Why do You Need Settlement Funds?
IRCC Settlement Funds are essential for those applying for permanent residency in Canada. Apart from helping them to survive in the new country, it’ll also help them to flourish. Thus, it’s a win-win for both sides. The immigration authority of Canada, Immigration, Refugee and Citizenship Canada (IRCC), has put in place minimum requirements of funds for foreign nationals due to two tangible reasons;
- Firstly, you won’t have to rely on the social assistance program and pressure the Canadian system.
- Secondly, the situation won’t coerce you to move back to your home country due to your inability to afford to stay financially.
The Canadian government wants your immigration process hassle-free because over a million jobs are available. The economic future of Canada will remain strong as long as people worldwide apply for permanent residency to work.
Having IRCC Settlement funds will also make you a functional member of Canadian society. With that, you’ll be able to contribute to the economic system. When you have sufficient money, you’ll be able to afford basic amenities such as renting a house, buying a car, paying for public transport, purchasing groceries, etc.
Additionally, it would be best to list every potential expense you may have in Canada during the first few months of entering the country. These include; administrative costs, living costs, transport costs, and even entertainment costs. Then, you can relate the funds you will need to how much you will potentially earn in Canada when you find a job. Settlement funds aim to help you live freely in Canada until you get a means of income.
Who does not need proof of funds?
Some applicants don’t need to show that they have enough money to support themself and their families. These include;
- Applicants applying under the Canadian Experience class
- Applicants are authorized to work in Canada and possess a valid job offer. It is applicable even if you ask for a permit under the Federal Skilled Worker Program or the Federal Skilled Trades Program.
Frequently Asked Questions
What is acceptable proof of funds?
Acceptable proof of funds includes a bank, security, or custody statements. The bank statement should be from an account in your name or the name of your accompanying spouse/common-law partner.
Does Canada give money to new immigrants?
The Canadian government has some financial benefits for new immigrants. For instance, there is the Canada Child Benefit (CCB) program. It aims to offset some of the costs of raising children under eighteen. The program comes under the Canadian Revenue Agency (CRA).
There is a program called goods and services tax/harmonized sales tax (GST/HST) credits. It’s a quarterly and tax-free payment for low and moderate-income Canadians.
How is the minimum settlement fund calculated?
Canadian government updates the minimum amount those immigrating to Canada need yearly based on 50% of the low-income cut-off totals. Although the changes are minimal, they can affect your eligibility. It’s advisable to research the cost of living in the area where you wish to settle in Canada.
Upon entering the country, you must notify the border officer if you have more than CAN$10,000 with you while entering Canada. If you don’t tell the officer, it will attract a fine, and Canadian authorities can seize your funds.
Is Express Entry open for Canada 2022?
Yes, it’s open. In July, Canada announced an invite for 1,750 express entry candidates to apply for permanent residence. Express Entry is one of the important ways people are using to immigrate to Canada. In 2022, Canada will be able to welcome 55,900 immigrants through Express Entry. The authority is hoping it will increase to 111,500 by 2024.
The program uses a points-based system, the Comprehensive Ranking System (CRS), to rank applicants’ profiles. The highest scoring applicants will receive an Invitation to Apply (ITA) and can apply for permanent residency.
Is GIC enough for proof of funds?
Yes, if you’re applying for a study permit. You can use Guaranteed Investment Certificate (GIC) from a participating Canadian financial institution. It’s an investment account that offers a guaranteed interest rate over a fixed period. It’s compulsory if you’re applying for a study visa to study in Canada. However, it should cover the entire fund you need if it’s another visa category.
Conclusion
In conclusion, immigrating to Canada as an individual, spouse, or family applicant should be hassle-free. You must show $13,310 for one person as IRCC Settlement funds while immigrating to Canada. The Canadian government allows you to show proof of funds in stocks, bonds, treasury, mutual funds, and bank statements. After submitting your permanent residency visa application, you’ll need your proof of funds and receive an ITA in the Express Entry program. It’ll help you flourish in the Great White North.
