Latest Update to Canada Proof of Fund Requirement

The IRCC has updated the table of required proof of funds for Express Entry (Essential Skilled Worker) visa applicants for the year 2021. These funds are meant for certain skilled working classes such as nurses and teachers. Although the submission of proof of funds will not affect the candidate’s overall profile ranking, it will help the application stand out during a tie-breaker situation. This article will address some of the important topics regarding the proof of funds requirement.

The minimum amount of funds

Applicants should be aware of the minimum amount of funds required to apply for immigration to Canada. This will come into effect on June 8, 2022. Current Express Entry account holders must update their declarations of settlement funds to meet the minimum required amount of funds. The amount of funds that are eligible to count towards the minimum required amount of funds is 50 percent of the total required funds. If the amount in your provident fund is less than fifty percent of the total required amount, you should be able to demonstrate your financial situation.

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Exemptions

Listed below are the different types of exemptions to the Canada Proof of Fund requirement. Each type of exemption has different requirements, but the main objective is to show that you have the funds to settle in Canada. Foreign nationals who apply under the Canadian Experience Class (CEC) or those who are legally authorized to work in Canada do not have to show proof of fund. For specific case-specific advice, contact qualified immigration professional.

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Exchange rate fluctuations

In 1929, the Canadian government floated the exchange rate. The Canadian dollar was relatively stable, staying near parity with sterling until 1931 when it began to depreciate against the U.S. dollar. The reasons for this change are complex but are usually clear in hindsight. When the relative interest rates are high and the Canadian dollar is expected to depreciate, foreign investors demand higher interest rates on Canadian dollar-denominated securities.

Real estate as a proof of funds

Buying a home or business in Canada may require you to present proof of funds. The best time to provide the proof of funds letter is on the day of the offer. This will show that you have the money to complete the transaction. A real estate agent can also ask for the proof of funds letter up to 24 hours after you have signed an offer. A proof of funds letter helps to establish you as a legitimate buyer.

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BitCoins/ Cryptocurrency as a proof of funds

In many ways, BitCoins/ Cryptocurrency acts as a proof of funds in Canada. As the most popular investment vehicle in the world, real estate is not accepted as POF. This is primarily because it is speculative, and immigrants must liquidate their property before arriving in Canada. A seller must present a deed to prove that the property is theirs or provide bank details to support their deposit. Bitcoins, on the other hand, are not regulated like real estate, and it’s therefore important to explain to the immigration officer how and why you have them.