Proof of Funds plays a crucial role in the Express Entry application process, particularly for candidates applying under the Federal Skilled Worker Program (FSWP) or the Federal Skilled Trades Program (FSTP). It serves as evidence that you have enough financial resources to support yourself and your family upon arriving in Canada. This is especially important because the Canadian government wants to ensure that applicants will not become a financial burden on the country upon arrival.
Here’s why proof of funds is important in the Express Entry process:
1. Eligibility Requirement for Some Applicants
- Federal Skilled Worker Program (FSWP) and Federal Skilled Trades Program (FSTP) require you to show proof of funds unless you have a valid job offer in Canada or are already working in Canada on a work permit.
- If you’re applying under the Canadian Experience Class (CEC), proof of funds is not required, as the assumption is that you are already working in Canada and can support yourself.
- Proof of funds ensures that you can support yourself and your family when you land in Canada until you can secure employment.
2. Minimum Funds Required
The amount of money you need to demonstrate varies depending on the size of your family. The Canadian government sets these amounts annually, and they are adjusted for inflation. The amounts must be available at the time of your application and at the time of landing in Canada.
For example, the required amounts in recent years for a family of:
- 1 person was around CAD 13,000.
- 2 persons was around CAD 16,000.
- 3 persons was around CAD 19,000.
- 4 persons was around CAD 24,000.
As the number of family members increases, the required funds also increase.
3. Types of Proof of Funds
Proof of funds must be liquid and easily accessible, not tied up in property or other assets. The most commonly accepted forms of proof are:
- Bank statements for the past 6 months showing your name and the current balance.
- Bank letters confirming your balance, the date the account was opened, and your average balance.
- Fixed deposits, if applicable.
- Mutual funds, stocks, or bonds, if applicable.
- Documents confirming assets like real estate or vehicles, but you should note that assets like these are generally not counted as liquid funds.
The Canadian immigration authorities want to see that the funds are readily available and not in the form of non-liquid assets like property or business investments.
4. How Proof of Funds Affects Your CRS Score
Proof of funds itself does not directly affect your Comprehensive Ranking System (CRS) score in Express Entry, but having a sufficient amount of funds can affect your eligibility to apply for Express Entry in the first place, particularly under the FSWP and FSTP. If you are unable to demonstrate the required funds, you may be ineligible to submit your application.
However, if you are applying with a valid job offer or if you are already employed in Canada, you may be exempt from this requirement, which can help improve your CRS score by avoiding the funds requirement altogether.
5. How Proof of Funds Can Strengthen Your Application
- Job Offers: If you have a valid job offer from a Canadian employer, you are not required to show proof of funds. This is why securing a job offer is one of the best ways to avoid the burden of proving financial resources.
- Support in Settlement: By showing that you have sufficient funds, you demonstrate to the Canadian authorities that you have the means to support yourself and your family when you arrive in Canada. This helps in creating a smooth settlement process.
- Additional Assurance: Proof of funds provides an extra layer of assurance to the Canadian government that you will be able to establish yourself without relying on social assistance, making you a more attractive candidate for immigration.
6. When and How to Provide Proof of Funds
- During the Profile Creation: While creating your Express Entry profile, you do not need to submit proof of funds right away. However, when you receive an Invitation to Apply (ITA), you will be required to provide proof of funds in your permanent residence application.
- At the ITA Stage: When you receive an ITA, you’ll need to upload your documents, including proof of funds, to your online application. It’s crucial to ensure that the documents are up-to-date and show that you meet the required amount of funds.
- At the Time of Landing: You must have the required funds when you land in Canada. Immigration authorities may ask to verify that the funds are still available when you land.
7. Exemptions from Proof of Funds
Some applicants may be exempt from the proof of funds requirement, such as:
- Candidates with a valid job offer in Canada.
- Candidates with Canadian work experience (as in the Canadian Experience Class).
- Candidates already employed in Canada on a valid work permit (you can show that you have stable income and employment).
- Candidates who are authorized to work in Canada and who have been working for at least one year.
8. Consequences of Failing to Provide Proof of Funds
- If you fail to provide adequate proof of funds or if your proof is insufficient, your application for permanent residency may be rejected or delayed.
- If you fail to show that you meet the financial requirements at any point in the process, you will be disqualified from receiving an Invitation to Apply (ITA) or having your permanent residency approved.
9. Using the Proof of Funds for the Settlement
While not mandatory, it’s also a good idea to plan ahead for how you will use your funds upon arriving in Canada. The funds are meant to help cover:
- Initial living expenses: such as housing, food, and transport.
- Job search costs: including travel, job application fees, and interview costs.
- Emergency costs: in case you face challenges finding employment immediately upon arrival.