Canada Proof of Fund – Why you Need to Be Ready Financially

We all know that immigration is neither an easy process nor it is cheap. It requires a lot of money and energy to file a Visa and settle in a foreign country altogether. Most of the times, all this leaves applicants perplexed. This article’s motive is to provide proper solution to people looking to migrate to Canada.
As you read further, you will learn how to prepare yourself for Canada immigration. You will also know the amount of money required for Canada Immigration and how to provide your proof of fund to the government.

The Estimated Funds Required For Canada Immigration…

The estimated amount that you would need before moving to Canada may vary depending on many factors. It might depend upon a specific Province or Territory you might be moving to.
Or, it might also depend upon the number of family members accompanying you. The table below shows the required funds you need to possess.
Number of Family Members Funds Required (in Canadian dollars)
1 $12,300
2 $15,312
3 $18,825
4 $22,856
5 $25,923
6 $29,236
7 $32,550
For each additional family member $3,314

Proof of Fund – Proving your Financial Stability To The Government…

You are to prove to the Canada immigration authority that whatever funds you are carrying is enough to support you and your family. This rule applies to both Skilled Worker through Express Entry and Self-Employed immigrant.
There are certain letters that you will need to provide to the immigration official that serves as your proof of fund. These letters will prove that whatever fund you have will readily be accessible when you arrive in Canada. You should also prove that this fund can be used for your settlement in Canada.
 
You will need to arrange a letter from your bank which should state your financial status. This information provided by the bank must be printed on a legal letterhead. The letter should contain the bank’s name, address and telephone number. Your name needs to be mentioned in the letterhead.
Status of your outstanding debts either credit card or loan should be mentioned. Your account number, the opening date of the account, current account balance and average balance for six months should also be made clear.

Living Cost in Canada

The cost of living in Canada may be different than your home country. This is the reason why the Canadian immigration authority demands a proof of fund letter. While living in Canada, you may have to take up a job with lower pay while you are upgrading your skills and collecting experience.
This means that your financial status may change during this period. The salary you take up in Canada can be higher than your home country. But, paying off all the expenses in Canada can take up to half of your take-home pay. These expenses include the cost of your home, food, clothing, health insurance, transportation, heating utilities and etc.

Expenses

Other than the basic expenses you will be meeting in Canada, there are other expenses also that you should be aware o the following.
  • Health Insurance
During the first three months of your stay in Canada, the Canadian Provinces or Territories may not cover your medical expenses. Hence, you will be taking up medical expenses on your own for the first three months if any.
  • Basic Expenses
Rent for your room or apartment and food will be your basic expense. This might take a big part of your take-home pay. Eating regularly at restaurants may increase you food expense too.
Other than this, clothing might take up to 10% of your take-home pay. Buying clothes from designer stores will increase your clothing expense.
  • Alcohol and Cigarettes
Buying alcohol or tobacco products in Canada is expensive. Canadian government levies heavy taxes on alcohol and tobacco products.
  • Transportation
When you settle in Canada, you would likely notice that many families own one or more cars. Canadians either buy or rent cars. In case, you are willing to buy a car, you should take many other things into consideration. The car you would own will require maintenance, gas, monthly loan payment, registration and insurance.
 
Also, many Canadians use public transport, walk or take a bike.
  • Occasional Expenses
The occasional expenses that you are bound to cover while your stay in Canada includes:
  • Your health insurance does not cover your prescribed medicines. You will be buying medicines from a dispensary or chemist.
  • Though the government covers your child’s school expenses, you are still bound to cover school supplies for your kid(s).
  • Making any long distance calls outside Canada can rack up big telephonic bills.

Deductions in Your Paycheques

There are certain deductions that your employer may levy on your gross pay. These deductions can deduct 25% to 35% of your gross pay. The money may be deducted from your paycheck for:
* Income taxes
* Canada or Quebec pension plans.
* Any insurance that your employer offers you.
* In case you belong to a union, you will have to clear your Union dues.
* If you plan to make any contribution through your employer, deductions for the same will take place.
* Any deduction agreement you and your employer have mutually agree to.
 
All these deductions will be mentioned in your pay cheque. The total amount that you take home before deductions is your gross pay. The money left with you after deductions is your net take away.

Sales Tax

Just like we see in many other countries, the Canada government also levies the sales tax on goods and services.
 
Goods and Services Tax (GST): The government of Canada levies 5% tax on most goods and services that you buy or use.
 
Provincial Sales Tax (PST): Many Canadian provinces will add PST upon GST to goods and services. PST can range from 7% to 10%. Alberta, Nunavut, Northwest Territories and Yukon do not levy PST.
Any changes to the proof of fund requirements is updated on our website timely.