2024 Update on Canadian Federal Immigration Settlement Funds

22 May 2024
For those seeking permanent residency through Canada's Express Entry, some program applicants are required to demonstrate proof of settlement funds. These funds are adjusted annually to reflect changes in the economic climate and were updated for this year on the Immigration, Refugees and Citizenship Canada (IRCC) website, effective May 28th.

When examining Canadian immigration programs that require proof of settlement funds, the Federal Skilled Worker Program (FSW) and Federal Skilled Trades Program (FST) within Express Entry are notable examples. While other Express Entry candidates, except for those in the Canadian Experience Class (CEC), also need to prove funds, those legally working in Canada with a valid job offer may be exempt. Additionally, some pathways within the Provincial Nominee Program (PNP) require applicants to meet minimum funds requirements to demonstrate they can cover living expenses in Canada, which varies by province. Entrepreneurs starting businesses through the Start-Up Visa Program must also demonstrate sufficient funds, which are used to show they can start a business and support their family in Canada.

The core reasons IRCC requires proof of settlement funds are as follows: Firstly, to ensure the economic independence of immigrants, helping them manage life in Canada without financial difficulties upon arrival. Settlement funds are meant to cover basic living expenses until employment is found, aiming for immigrants to live independently without the need for social or economic support.

Secondly, to prepare for unforeseen expenses during the initial settlement phase. Unexpected costs such as medical bills, housing, and education can arise, and having these funds allows for immediate response.

Lastly, to facilitate long-term social integration. Immigrants who can start off economically stable are more likely to integrate effectively into society in the long run, contributing to Canada’s economic and cultural diversity.

Due to these reasons, Canadian immigration programs require immigrants to prepare necessary funds for settlement. The ability to maintain certain economic support underpins not only the successful adaptation of the immigrants themselves but also benefits the broader Canadian society.

When submitting proof of funds, it must be in the official letter format from a bank or financial institution that meets IRCC standards and includes the financial institution's contact details, the applicant’s name, a list of unpaid debts such as credit card debts and loans, account number, the date the account was opened, current balance, and the average balance over the last six months.

The criteria for determining proof of funds in immigration programs are based on various factors including the number of family members, regional cost of living, average income and consumption levels, inflation, exchange rate fluctuations, and economic growth, and are updated annually.

If you are preparing for permanent residency through a program affected by this update, ensure to update your profile’s proof of funds before the new regulations take effect on May 28, 2024. It is also advisable to stay informed and prepared by closely following updates from IRCC until you secure your permanent residency.

CONTACT US

Embark your journey with CanNest Immigration