Financial capacity proof is a fundamental requirement for many immigration programs in Canada, such as the Federal Skilled Worker Program and the Federal Skilled Trades Program. Applicants are required to declare the amounts of money they currently possess, which will assist them in the transition and settlement in Canada. They are asked to provide evidence of these amounts to support themselves and their family members in covering living expenses in Canada for the initial period of their life there.
Every year, the Canadian Citizenship and Immigration Department adjusts the required amounts based on financial reports for low-income individuals in Canada. Applicants must prove that they possess 12.5% of the total income for low-income individuals.
Applicants are required to prove their financial guarantee during the immigration process, except for those currently legally working in Canada through temporary work permits or individuals with an approved job offer from a Canadian employer.
It is important to note that borrowing these amounts from any person or external entity is not allowed. These amounts must be transferable to Canada and convertible to liquidity in case the permanent residence visa is issued.
Types of proof of funds in Canada
Applicants can provide evidence of possessing the required financial resources by submitting official letters and statements from banks or financial institutions where they hold their funds. The official letter should mention any debts or outstanding loans on the applicant, in addition to listing all investment or current accounts the applicant holds.
Types of financial capacity proof include:
- Cash and transferable securities.
- Convertible stocks, and treasury bonds.
- Checks payable to the applicant and financial transfers.
In Canada, customs laws require immigrants or travelers to declare the monetary amounts they have if they exceed 10,000 CAD. Failure to comply with this requirement could subject the traveler to fines or the seizure of the funds in their possession.
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