Immigration Corner | Changes to Canada’s settlement funds

Dear Miss Powell,

I’m planning to apply for self-sponsorship to Canada and I wanted to make sure that I have the requirements as it relates to the amount of money that I need in my bank account? Does everyone have to show this amount, or are some people exempted? What is the accepted proof of funds? Thank you for informing us.

AK

Dear AK,

The government of Canada updates the requirements for settlement funds annually and recently released new updates to the settlement fund requirements.

Individuals must be prepared to clearly demonstrate that they have the minimum amounts when applying to ‘self-sponsor’ as a Federal Skilled Worker or a Federal Skilled Tradesman.

Some individuals do not need to prove the minimum requirements if they qualify under the Canadian Experience Class (CEC); have a valid job offer, supported by a Labour Market Impact Assessment (LMIA), or exempted; or working legally in Canada at the time of the application.

Proof of funds

The minimum amount of money you need to support your family depends on the size of your family. When calculating the minimum amount required, you should include yourself, your spouse or partner, your dependent children, and your spouse’s dependent children. You are also required to include your spouse or dependent children, even if they are not planning to come to Canada or if they are already living in Canada as permanent residents or Canadian citizens.

The requirement for 2020 is that, if you are the only person applying, you will need to show that you have a minimum of CDN$12,960. For a family of two – CDN$16,135; family of three – CDN$19,836; family of four - CDN$24,083; family of five – CDN$27,315; family of six – CDN$30,806; family of seven – CDN$34,299. If your family is more than seven individuals, you should add CDN$3,492 for each additional individual.

You should ensure that you exceed the minimum amount when applying to ensure that you always qualify, even if the amount changes while your application is being considered. A strategy that I recommend is that you keep the same figure in United States currency, if you can. That way you are always ahead of the game, as the United States dollar is currently stronger than the Canadian dollar.

Purpose of the Funds

The purpose of the funds is to ensure that you have enough money to help you with settling into Canada to support yourself and family. Most importantly, it is proof that you will not require government financial assistance while you are seeking employment during the early stages of resettlement and establishing yourself in Canada.

You are required to state the amount you have in stage one of the application process, when you apply under the Express Entry System. Stage two of the application process is when you will need to submit proof of liquid funds with your application for permanent residence.

An acceptable proof is a letter from your bank or financial institution showing your savings, chequing, investments and other outstanding debts. You may also submit a letter from your investment broker that demonstrates you own stocks, bonds, debentures, Treasury bills or other types investments. This letter must clearly indicate that you own the funds and the average balance over the past six months. You cannot have joint bank accounts with another family member, unless that person is an accompanying spouse. If you are relying on funds in your spouse’s bank account, you must be prepared to show that you will have access to the funds.

I trust that the above information clarifies your concerns. If you need personal assistance or have additional questions, connect with me via www.deidrepowell.com or submit an email to request a telephone meeting.

Deidre S. Powell is a lawyer, mediator, and a notary public. Submit your questions and comments to: info@deidrepowell.com Find her on Facebook, Twitter or Instagram.