The quantity of proof of funds necessary for international students has been changed by the Canadian government.
Students requesting a study visa as of January 1, 2024, will need to demonstrate that they have at least $20,635 to cover their living expenses in addition to tuition.
To receive a student visa and permission to enroll in a program at a Designated Learning Institution, or DLI, foreign students have been required to provide proof of funds totaling at least $10,000 since the early 2000s. They now require somewhat more than twice that quantity.
The government makes a straightforward case:
The rising cost of living, which is impacted by variables like inflation and higher housing and food bills than in the past, has made it more important than ever for international students to have enough money to study in Canada.
The Canadian government notes that living expenses have gone up dramatically, especially in big cities.
Therefore, in any Canadian province or city where they intend to continue their education, international students must make sure their budgets meet these high financial demands.
In light of the financial difficulties that students encounter, the government has decided to prolong the 20-hour workweek restriction for international students until April 30, 2024.
In light of these rising living expenses, this extension aims to assist students in better managing the financial obligations of their studies in Canada.
In light of this development, foreign students wishing to study in Canada are required to submit evidence of finances in the form of a bank statement from themselves or a sponsor, demonstrating a minimum of $20,635 plus tuition fees.
Extra cash is also needed for each dependent child and accompanying spouse.
International students continue to choose Canada as their study abroad location for a high-quality education.
Canada offers top-notch educational opportunities and has policies in place for students who want to remain in the country after graduation.
Acceptable documentation of adequate financial assistance to cover living expenses and tuition is necessary to continue education in Canada.
For the time being, until April 2024, the government is assisting by permitting students to work more than 20 hours per week.
The likelihood of your application being approved for a study permit or student visa is mostly dependent on your capacity to provide for yourself after you arrive in Canada.
In reality, 10% of applications for study permits in Canada between 2019 and 2021 were denied because they did not provide enough evidence of their ability to pay, according to the IRCC.
Applicants must demonstrate to a visa officer that they can financially support themselves while studying in Canada if a spouse or other family member is traveling with them.
Possession of proof of sufficient cash or evidence of unencumbered funds is one of the fundamental prerequisites for a student visa to Canada.
Furthermore, as a foreign student, you have to show that you have the financial means to cover your tuition for the whole time you are studying in Canada.
When you apply, the school you are enrolled in will also ask for evidence of your financial stability.
Therefore, proof of money refers to the documentary evidence that you can afford the expense of studying in Canada, regardless of who requests it.
Any of the following documents can be accepted by the Canada Visa Office as evidence of adequate cash or financial support:
- Proof of a Canadian bank account in your name, provided there are sufficient funds if funds have been moved from your home country to Canada
- Proof of a current student loan from a financial institution or proof of education
- Your last six months’ worth of bank account statements
- A draft from a bank convertible into Canadian dollars
- Evidence of payment for the room and tuition;
- A letter from your sponsor or the organization that is giving you funding or a scholarship; and documentation showing that, in the case of a scholarship or educational program supported by the Canadian government, the funding was received domestically.
- A Guaranteed Investment Certificate (GIC), a safe investment bank account where students deposit funds and gradually earn income, is required of applicants using the Students Direct Stream.
As an aside:
- You have to demonstrate that you can export enough money to cover all of your costs if your nation has foreign exchange regulations.
- An employment letter verifying your sponsor’s income or a declaration from your sponsor indicating their commitment to you could not be adequate evidence of cash in the eyes of the immigration official.
- This is so because none of these records demonstrates that there is sufficient funding to support you. For this reason, one of the best forms of proof of finances when requesting a study permit is bank account statements that display the level of funds and the source of those funds.
You may be asked to produce your bank account statements or the bank account statements of your sponsors for a certain amount of time by the Visa Consulates or the University.
The statements ought to be identified by the individual’s name.
It must be an authentic statement that has been scanned, properly stamped, and signed by the bank.
The bank statement needs to be authentic, written on the bank’s letterhead, and signed by the bank to demonstrate financial capacity.
It should include the tenure that the university or consulate requires, which is often six months’ worth of bank statements.
As further evidence of money, you may submit a letter of loan approval. Once more, obtaining it from the bank where you applied for the loan ought to be simple.
The letter should normally state that the bank has approved lending you the specified amount for your overseas higher education, even if the banks may have their formats.
On the bank’s letterhead, the loan approval letter needs to be properly signed and stamped. It must also include a commitment to release funds at the designated time and the amount to be disbursed in the student’s name.
If you have been awarded a scholarship, you can affix your scholarship letter as proof of your ability to pay.
Usually, the university, organizations providing the scholarship, or donor agencies offer this letter. Please enclose a copy of any government grants or scholarships you may have been awarded.
A loan approval letter and a loan capacity certificate are slightly different. Let’s say a bank or financial institution issues you a capability certificate.
In that instance, it means that if you are accepted to an international university, the bank will lend you money.
Your name, your eligibility for the loan, and the financial institution’s initial commitment to approve the loan should all be prominently displayed on the Loan Capability Certificate.
Additionally, it needs to be properly signed and stamped on bank letterhead.
The IRCC requires funding confirmation to ensure that international students have sufficient funds to pay for their tuition and living expenses while enrolled in courses in Canada.
This requirement helps to distinguish between students who can afford to complete their education in Canada and those who can’t and might use their student visas for illegal activities.
Remember that your guardian, parents, or other family members could serve as your sponsors.
The goal is to demonstrate through bank financial statements that the funds mentioned in the sponsor’s letter are, in fact, available and that their sources are legitimate and traceable.
Evidence of your relationship with your sponsor must also be included.
For a variety of reasons, the IRCC may reject your financial evidence. A few instances of proofs of fund denials are as follows:
The most obvious reason for a student visa to be denied is insufficient funds.
As previously stated, to cover their annual cost of living and educational expenses, students going to Canada alone must have a minimum of $20,635 in addition to their tuition.
Depending on the school where you are enrolled, you might need to show that you have at least $30,000 to $40,000.
Presenting evidence of less than this sum demonstrates your inability to sustain yourself while completing your studies in Canada, which could result in rejection.
Students who make a large or “bulk” payment to their account a few weeks or months before applying are likely to have their student visa application declined.
These deposits demonstrate that the funds were solely added to the account for “demonstration” purposes—not because the student or sponsor owns them.
Let’s say that when you apply for a student visa in Canada, you intend to put a sizeable amount into your account to demonstrate your ability to sustain yourself financially.
Verify that the transfer was completed at least six months in advance.
As an alternative, you might include a compelling statement in your SOP outlining the funding source.
Education loans are one means by which international students can demonstrate their financial capability, as they are frequently required to do.
Although using personal loans for this reason is feasible, caution is advised.
Immigration, Refugees and Citizenship Canada generally prefers education loans, especially those made especially for students.
However, in contrast to specialized student loans, the IRCC generally views personal loans—even those utilized for education—differently.
Therefore, there’s a chance that your application for a student visa will be denied if you provide a personal loan as proof of funds.
It’s best to use approved student loans or other more respectable ways to prove your ability to pay.
A letter from your bank or another financial institution verifying that you have a specific amount of savings or that you get a monthly income might serve as proof of financial support for a Canadian student visa.
Your name, address, and account numbers should be included in the letter, which should be written on formal letterhead.
Additional documentation, like pay stubs, bank records, or investment statements, can be included to demonstrate that you have the money to support yourself while pursuing your studies in Canada.
Government grants and scholarships, together with letters from employers or sponsors, are also recognized as evidence of financial assistance for studying in Canada.
When applying for a student visa to Canada, you have to provide evidence that you have enough money to pay for your living expenses and tuition.
Frequently, a six-month bank statement is needed. Furthermore, please supply any of the following: original bank account statement, loan capacity certificate, loan approval letter, or scholarship letter.
Starting in January 2024, IRCC will demand a minimum of $20,635 for living expenses in addition to tuition.
Your bank account will not be examined by the Canadian Embassy or Consulate; instead, they will merely look up your last few months’ worth of bank statements.
Moreover, even if they try to contact your bank, they will be unable to obtain any information since they lack the required authorization or waiver from you.
They do, however, respond to bank requests.
You can get a Canada student visa by having a friend, family member, relative, or other third party sponsor you.
They just need to write a statement stating that they will cover your living expenses and tuition.
In Canada, you have to be at least eighteen to study. There is no upper age limit; however, if you are underage, you must have a study permit.
The age restriction, though, differs from province to province. You must also be an international or Canadian student between the ages of 18 and 35.
A letter of introduction and several important documents are required (medical certificate, proof of English proficiency test, proof of sufficient finances to finance your education, acceptance letter from a university, and academic documents).
Applying for a temporary student visa may also be necessary.
No, you cannot obtain a study visa by using your property as collateral for finances. You must have easy access to the money (unencumbered).
For example, equity in real estate cannot be used as evidence of funds. Also, you are not permitted to borrow this money from anyone else. This money has to be able to cover your living expenses and education.
Not really. For international students, landed assets might be used as evidence of a strong connection to their home country, but they cannot be used as proof of funds for a student visa to Canada.
The amount of money used as evidence of funding for the study permit must be a near-cash liquid asset, according to IRCC regulations.
Additionally, the student in Canada must have access to this money as needed.
The necessity for students to be financially prepared for their academic journey and the changing nature of the economy is reflected in the most recent modifications to the proof of funding criteria for international students wishing to study in Canada.
Considering that living expenses and tuition have increased to $20,635 per year, it is more crucial than ever for prospective students to carefully manage their financial situation.
This guarantees a seamless transfer and a fruitful academic career in Canada. It can be difficult to comprehend these criteria and prepare the required paperwork.
For this reason, we suggest using our thorough, step-by-step application process for a study permit to Canada.
This tutorial simplifies the application process so you can proceed confidently and easily through each step.