Immigration to Canada is exciting. But it can also feel scary, especially when thinking about money. Canada wants to make sure that newcomers can live comfortably in their first months. That’s why the government asks for something called “settlement funds”.
Settlement funds are savings you show before moving. They prove that you’ll be able to pay for housing, food, and daily life until you find a job. Think of them as your safety net. This isn’t about being rich. It’s about showing you have a strong start when you arrive. Many families say that having this money ready gave them peace of mind.
If you’re thinking about immigration to Canada or planning for permanent residency in Canada, understanding settlement funds is one of the first steps. Don’t worry, it’s not as complicated as it sounds. And with the right preparation, you can get everything ready on time.
Main Canadian Immigration Pathways and Required Settlement Funds (2025):
| Immigration Pathway | Settlement/Proof of Funds Required (1 person) | Settlement/Proof of Funds Required (2 people) | Settlement/Proof of Funds Required (3 people) |
|---|---|---|---|
| Federal Skilled Worker (FSWP) | CAD $15,263 | CAD $19,001 | CAD $23,360 |
| Federal Skilled Trades Program (FSTP) | CAD $15,263 | CAD $19,001 | CAD $23,360 |
| Canadian Experience Class (CEC) | Not required | Not required | Not required |
| Provincial Nominee Program (PNP) – Express Entry stream | CAD $15,263 | CAD $19,001 | CAD $23,360 |
| Quebec Skilled Worker Program (QSWP) | Varies | Varies | Varies |
| Start-up Visa Program | Not required | Not required | Not required |
| Family Sponsorship (spouse/partner or dependent child) | Not required | Not required | Not required |
| Atlantic Immigration Program | Varies (based on LICO) | Varies | Varies |
| Study in Canada (Study Permit) | Tuition + CAD $15,263 | Tuition + CAD $19,001 | Tuition + CAD $23,360 |
Who Needs to Show Settlement Funds?
Not everyone has to prove settlement funds when applying for immigration to Canada. It depends on the program you choose. Here’s how it works:
- Federal Skilled Worker Program (FSWP): You must show settlement funds.
- Federal Skilled Trades Program (FSTP): You must show settlement funds.
- Canadian Experience Class (CEC): You don’t need to show settlement funds.
- If you already have a valid job offer in Canada: You don’t need to show settlement funds.
Think of it this way:
- If you’re moving to Canada without a job waiting for you, the government wants proof that you can support yourself and your family.
- If you already have work in Canada, they know you’ll earn money soon, so no proof is needed.
How Much Money is Required in 2025?
The Canadian government updates the settlement fund amounts every year. This is to keep up with the cost of living. The amount you need depends on how many people are in your family, even if they’re not moving to Canada with you.
Here’s the official table for 2025:
| Family Members | Required Funds (CAD) 🕒 Last Update: July 2025 |
|---|---|
| 1 (just you) | $15,263 |
| 2 | $19,001 |
| 3 | $23,360 |
| 4 | $28,362 |
| 5 | $32,168 |
| 6 | $36,280 |
| 7 | $40,392 |
| Each extra person | +$4,112 |
Some important points:
- Family size means you, your spouse or partner, and your dependent children.
- Even if your family isn’t traveling with you right away, they still count in this table.
- If you don’t update your Express Entry profile with these amounts, you may lose your chance to be invited.
Think of this as your “arrival cushion.” It’s not about luxury, it’s about making sure your first months in Canada feel safe and manageable. Many new immigrants say this money gave them the breathing room they needed to settle in without stress.
What Documents Are Accepted as Proof of Funds?
Not all money counts as settlement funds. Canada wants to see that your savings are liquid (easy to use) and accessible as soon as you land.
✅ Here are examples of what counts:
- Cash in your bank account
- Savings accounts
- Fixed deposits (if you can withdraw them anytime)
- Guaranteed Investment Certificates (GICs)
- Other liquid investments that can be turned into cash quickly
It’s easy to think that “any asset” can prove your financial strength. But for Canada’s immigration system, that’s not the case. Some types of money or assets don’t qualify.
❌Here’s what doesn’t count:
- Real estate or the value of your home
- Cars, gold, or jewelry
- Business assets
- Retirement savings that can’t be withdrawn now
- Loans or borrowed money
Why not? Because these can’t be turned into cash quickly. Settlement funds must be money you can actually use the moment you land in Canada.
Proof of Funds: Required Documentation
Having the money is one part. Proving it to the Canadian government is the other. IRCC (Immigration, Refugees and Citizenship Canada) wants to see clear, official evidence of your funds.
Here’s what you’ll need:
- Bank letter on official letterhead that includes:
- Your name
- Bank’s contact information
- Account numbers
- Date each account was opened
- Current balance
- Average balance over the last 6 months
- Any debts, like loans or credit cards
- Recent bank statements (usually 6 months)
- Proof of fixed deposits or GICs, if you’re using them
A few tips:
- The letter must be signed and stamped by your bank.
- If funds are in your spouse’s account, you’ll need to show your marriage certificate and proof that you can access the money.
- Keep your funds stable, don’t move them around too much right before applying.
Think of this step as showing a “financial snapshot” of your life. It tells Canada that your savings are real, stable, and ready for use.
Common Mistakes Applicants Make
Many newcomers get stressed about settlement funds and make simple errors. Avoiding these mistakes can save time and prevent delays.
Here are the most common ones:
- Unexplained large deposits: Banks may notice sudden money transfers. Always be able to explain the source.
- Using property or personal items: Real estate, cars, and jewelry do not count as funds.
- Borrowed money: Loans or credit cards aren’t allowed.
- Funds in someone else’s name: Make sure the money is in your account or your spouse’s, with proof you can access it.
- Not keeping funds stable: Money should stay in your account until you arrive in Canada.
Many applicants feel overwhelmed, but these mistakes are easy to fix. Even small adjustments can make your application smoother.
How to Strengthen Your Proof of Funds Application
Showing settlement funds isn’t just about the amount. It’s about clarity, stability, and proof. Here are some tips to make your application stronger:
- Keep funds stable for months: Don’t move large amounts around right before applying. Sability shows your savings are genuine.
- Use official bank letters: Letters must include account details, balances, and bank contact info.
- Provide 6 months of statements: This proves consistent savings and avoids suspicion of sudden deposits.
- Include spouse’s funds if needed: If your spouse has savings, show access and include a marriage certificate.
- Explain unusual transactions: A short note can help if there are big deposits or withdrawals.
Many applicants worry about small mistakes, but taking these steps gives you confidence and reduces delays. Think of it as packing carefully for a long journey; everything in order makes the trip easier.
Final Thought
Settlement funds are more than just a number. They’re your safety net, giving you peace of mind as you start your new life in Canada. Having the right amount and proper proof makes your immigration process smoother and less stressful.
Remember: it’s not about being rich. It’s about showing that you’re ready, responsible, and prepared for your first months in Canada.
👉 Take the first step with confidence! Fill out our free assessment form today, and we’ll help you figure out exactly what you need for your move.
FAQs
No, if you have a valid job offer approved by Canadian authorities, you usually don’t need to show settlement funds.
Yes, but you need to provide proof of access (like a marriage certificate) and a bank letter showing the funds.
No. Only cash or liquid savings that can be accessed immediately count.
It’s best to keep them stable for at least 6 months before applying.
Your application may be rejected, or you could be asked to show additional proof. It’s always better to be safe and prepare the full amount.
Money you save to cover living expenses when moving to a new country.
Funds required by Canada to prove you can support yourself and your family after arrival.
Money exchanged between banks to settle international transactions.
No, it’s your own savings and not considered income.
Depends on family size (2025): 1 person CAD $15,263, 2 people CAD $19,001, 3 people CAD $23,360.
The total available funds after deducting any debts or obligations.
Settlement funds are not required because a valid Canadian job offer indicates that the applicant will have a source of income upon arriving in Canada. This reduces the need to show additional savings to support themselves.
Tuition + living expenses: 1 person CAD $15,263, 2 people CAD $19,001, 3 people CAD $23,360.
Permanent residents, refugees, protected persons, and some newcomers to help them integrate.
