One of the necessary things you will need in your immigration plan is to be able to prove that you can survive after moving into the country you are moving to. Hence, the need for proof of funds.
There are some misunderstandings about the proof of funds. This article will be geared towards enlightening you on everything you need to know about proof of funds.
First, let us get to know what proof of fund is, and why it is needed.
What is Proof of Fund Canada and Why it is Needed?
This is pretty much a letter that most often comes like a bank statement, and it reveals the ability and funds available for a specific purpose.
So, you need to be able to prove that you can sort yourself out as regards the major reason why you are moving into the country you are moving to.
In countries like Canada, some sets of immigrants won’t necessarily have to show proof of funds if they are settling in Canada.
Who Needs and Doesn’t Need Proof of Fund in Canada?
The sets of people that need proof of funds to settle down in Canada are:
- Federal skilled Worker Program
- Federal skilled Trade Program
The sets of people who might not necessarily require proof of funds are
- People applying under the Canadian Experience Class
- People that are authorized to work in Canada and already have a job offer. It does not matter if they apply under the Federal skilled worker program or the federal skilled trade program.
Please note that this is specific to Canada, make sure to get information if you apply for another country.
All You Need to Know About Proof of Fund
The details you will find here are everything you will need to know about proof of funding. It is a guide on things you need to know and take important while getting it ready.
1. The amount of money you need.
The amount of money needed is largely dependent on the size of the family that you have. For Canada, if you have your family member, you need about $13,310. For every family member added, you should add $3586. This is specific to Canada.
If you are going to be an international student in Canada, your proof of fund will be an addition of your tuition fee for one year to the amount you will spend on living for one year (expenses). This is the minimum for international students.
The living expenses, it is about $10,000 per year according to Canada’s website on Immigration. If you as a student want to come with one family member, it will affect your living expenses. The living expenses will be $14,000. That is $4,000 added, for the first family member. If you have any other person, probably a child, you add $3,000. That is $17,000 in total.
So, you can see that this proof of fund has a lot to do with how large your family is.
2. There are other ways to type of funds to show in the proof of fund.
Another way you can show proof of funds is a Guaranteed Investment Certificate. This is a situation where you deposit a certain amount of money to a Canadian bank that will be in charge of regulating the amount of money that will be disbursed to you monthly from the deposited money.
Another way is assets and investments. These can also be a means of proving your funds. If you have gotten a house in your home country or it might even be that you have houses that go for rent to different people. It might be stock or any other form of investment. They are also a type of fund.
You can list or mention them when making your proof of fund, but do not make them the major proof of fund. The cash should be the major.
Then if you have some sort of assistance being thrown in for you when coming into the country, it might also be of help. Probably you are having a family member that lives in the country you are migrating to, and they can offer you accommodation, feed, and support yourself financially.
Your school fees receipt and that of your flight too can be a great means to show the proof too. Show the receipt for the things.
3. Calculate for the years of your study if you are a student
Now, this can get a little tricky. If you are studying for two years, you will need to calculate for two years. This will surely increase your chances.
4. Let it be natural as possible
Now, this has to be natural. You cannot expect approval with a 3-month-old bank account that is just getting little transactions, then suddenly a massive amount of money comes in. That is really suspicious and looks like the proof was forged to get approval.
If you at any point received a huge sum of money, it is better to explain what the money is about, to douse the effect it might have.
5. Still, show your bank account even if you have a Guaranteed Investment Certificate.
You need to still show your bank account even if you have a GIC. It is better that way. GIC is mostly between 10,000$ to $50,000. That can really show funds for your living expenses. The way GIC works might not make it easy to proof tuition fees.
6. There might still be a chance if your major fund is rental.
Probably you want to use the houses you have put out for rent to show as proof of fund. This is majorly always a supplement, not the major one.
If the income is consistent and huge, you can use it. Make sure to let them know how much you are getting from it per month.
This will be an assurance that it is pretty much safe and secured to bank on it.
7. You still need a bank statement even if you will have people that will support you.
You might be lucky to have family relatives or friends that can accommodate and feed you, which will reduce your expense. But there are other expenses besides these. So, it is still advisable to show the bank statement.
8. You will need documents if you are getting supports
You will need to get an affidavit of support, income tax return, pay slip, and then your bank statement.
The affidavit of support should list the things you will be benefiting from your support. This gives the idea of the extent of the support you will be getting.
Possible Mistakes While Showing Proof of Fund
There is a possibility of making mistakes while showing your proof of funds. Please note these mistakes.
1. The amount is not enough.
The problem people face is showing a bank detail that is not substantial for approval. It is important to get necessary information specific to the country you are targeting. Make sure your accounts align with the balance.
If they don’t, think of other kinds of funds that may prove your ability to settle down easily. Make sure that you are using the right exchange rate from the two different currencies.
2. Don’t use another person’s account
It is advisable to just make use of your account when it comes to showing proof of funds. This throws in a level of some doubt when you use someone else’s account.
The only safe accounts to use are your parents’ account or your support.
3. Being unnatural
I explained a scenario of how unnatural it might look to just drop a huge sum of money into your account that has only really been receiving a small amount of money.
Or you freshly create an account that might seem so unnatural. Use your account, and make sure money is actively getting into the account enough to use it to show proof of funds.
Do I Need to Convert the Currency Rate using Bank Rate?
This is a tricky one, but the only advice that can be given here is that you make sure you are on the safer side. Make sure you are well above the bare minimum. That works.
Do I Need My Personal Bank Statement if I am Getting Fully Sponsored by my parents?
You don’t necessarily need it if you are being sponsored by your parents. Just show them your parents’ bank statement and prove or show that they are the ones fully sponsoring you, and that does the job.
Don’t say I didn’t help. You have all you need when it comes to you showing perfect proof of funds. This won’t be as hard as you thought. Just follow the guide, and make sure you are informed. I wish you the best in your immigration plan.