Proof of Funds for a Study Permit in Canada: All You Need to Know

So, you’re on your way to studying in Canada! Maybe you’re jet-setting to bustling Ontario or picturesque British Columbia. This journey will lead you to an excellent qualification, lots of friends, and an enjoyable experience abroad.

However, one thing that can stump potential study visa applicants is how to provide proof of funds. If you’re struggling with this, you should read on because we are here to break down everything there is to know!

In this article, we’ll be covering:

• Why showing proof of funds is necessary
• Which documents you should collect to prove you have adequate financial resources
• How much you will need to prove you have access to when you apply
• How to prepare your documents
• Why your proof might be rejected
• Some key FAQs

Let’s get into it!

What is the Purpose of Showing Proof of Funds for a Study Permit?

To start, let’s answer some quick questions right off the bat. 

• No, proof of funds isn’t related to visa application fees. 
• Yes, insufficient proof of funds is a valid reason for your application to be rejected.

So, why do Canadian immigration services - Immigration, Refugees and Citizenship Canada (IRCC) - require you to verify your financial support? The short answer is that they want to ensure you can support yourself during your program of study. 

You might come from a country where higher education is partially or fully funded. Unfortunately, you won’t be able to count on that in Canada. 

Student living can come with various expenses - for example, course costs, textbooks, school trips, and other university fees. Moreover, students face numerous general living expenses, such as accommodation or housing, food, travel, and more. You must prove that you can support yourself and any family members or dependents accompanying you during your time abroad. 

You are not required to provide evidence that you’ve paid for your tuition fees past your first year of study. But that’s only the case if your proof of funds raises no red flags. If you want to know whether you need to provide more evidence when extending your visa, check out our article!

What Documents are Accepted as Proof of Funds?

Bank Statements

Bank statements can help prove that you have sufficient funds to support your study in Canada. A great way to support your application is by showing that you already have enough money saved.

Bank statements from the previous four months should be provided. In addition, obtaining a current statement will ensure you have provided the most up-to-date information possible.

Bank Drafts

A bank draft can also support your application. A bank draft may have to be formally ratified by a notary or other bank official bank to be valid.

Other Acceptable Forms of Proof of Funds

Other acceptable forms of proof include:

• A Canadian bank account in your name if you’ve transferred money to Canada
• A Guaranteed Investment Certificate (GIC) from a participating Canadian financial institution
• Proof of a student or education loan from a bank
• Proof of prepaid tuition and housing fees
• A letter from the person or school giving you money
• Proof of funding paid from within Canada if you have a scholarship or are in a Canadian-funded educational program

Loan Approval Letters or Disbursement Letters

A loan approval or disbursement letter can be used as proof of funds. These letters affirm that you are qualified for a student or educational loan. 

This loan is from a financial institution to help you pay for your studies. A disbursement letter is even better evidence which shows the funds have been released.

Scholarship Letters

Some institutions offer scholarships for international students to help ease the financial burden of studying abroad. If you meet their eligibility criteria, applying for scholarships is excellent. Scholarships can even cover living expenses in the area you intend to study.

If you earn a scholarship, you can provide a scholarship letter to demonstrate you have support from your educational institute. You will be able to acquire a letter from your institute.

Your scholarship may only last for one year. Of course, you may be enrolled in a multi-year course of study. If so, you may be subject to increased scrutiny or be required to provide further evidence of financial support.

Loan Capability Certificates

A Loan Capability Certificate is a document that contains all the essential details regarding an educational loan for studying abroad. A bank or financial institution issues the certificate as a formal declaration. 

This declaration affirms that applicants can afford their tuition fees and expenses abroad. This document clearly explains the amount to be borrowed and the loan terms.

Calculating the Amount Needed for a Study Permit Application

Single students must demonstrate they can access CAN $20,635 (not including tuition) per year. This amount is the minimum for all provinces besides Quebec.

IRCC will raise this financial requirement on an annual basis. Each yearly adjustment will be based on information reported by Statistics Canada. 

If you plan to live with family members, the amount of money necessary is more. You can look at this page for a helpful table. If you intend to study within Quebec, you must meet a separate set of requirements.

Living Expenses in Canada

Living expenses will vary between where places and are dependent on how you intend to spend your time. Suppose you plan to stay in a relatively cheap apartment, hall of residence, or other similar accommodation area. In that case, your expenses will be less than someone looking for a large apartment in a central area.

It’s a good idea to research living costs for your particular area before beginning your application. This research will help you determine if it’s feasible for you to attend your course of study. You must also determine that your budget for living expenses is sufficient for food, water, transport, and occasional unexpected expenses.

Tuition Fees and Other Educational Costs

You must also demonstrate you can cover the first year of your tuition. Remember, the CAN $20,635 required for a single student does not include tuition fees.

Of course, your tuition costs and related fees will depend on your chosen course and educational establishment. Highly regarded institutions and courses offering many trips or requiring additional resources will likely cost more.

You should save the information about the amount required to pay for your first year of tuition. You can find this easily when researching your prospective courses and preferred universities or colleges. This due diligence will help you save enough money necessary for a successful visa application.

Additional Costs to Consider

Flights are another big additional cost to consider. You’ll need to cover the trip to Canada. However, you must also consider how frequently you want to travel between your university and your hometown.

You may also wish to budget for going out with friends, sightseeing, and domestic travel. You should try your best to explore one of the most beautiful countries in the world. You may also want to buy gifts for friends, parents, children, or your spouse or partner.

Having an emergency fund if something goes wrong is also a good idea. This fund will help cover unexpected medical expenses, damage, and emergency purchases.

Preparing the Financial Documents for Submission

Gather Necessary Documentation from Financial Institutions

First, make sure you have everything that you will need to apply. This will mean contacting your bank, educational institution, and any other bodies or persons from whom you need information.

Upload to BorderPass

This is where the process gets a whole lot simpler! You can upload this information to the immigration application portal, BorderPass. BorderPass will guide you through uploading the correct documents during your application.

If you have a sponsor, fill in their details at this step. 

Reasons for Proof of Funds Rejection

Insufficient Funds

If the assessors deem that you have an insufficient sum to cover your expenses while in Canada, you’ll be refused. This is because you are unlikely to be able to complete your course of study successfully. If you are refused, IRCC is likely concerned you’ll require additional assistance from the Canadian government.

Bulk Deposits

Bulk deposits can be a marker of trying to cheat the system. While you might do it with the best intentions, it will raise flags with immigration authorities. 

Consider adding an explanatory letter if you want to make a bulk deposit. In addition, try providing alternative verification of finances or making the deposit four months or more before applying.

Personal Loans

It might seem like educational and personal loans aren’t that different. However, IRCC tends to see them differently. 

Typically, a personal loan doesn’t have the same guarantees as an educational loan, depending on your financial institution. Try to get an educational rather than a personal loan wherever possible to avoid unnecessary rejection.

Top Ways to Show Proof of Funds for a Canadian Study Permit

Tuition Fee Payment Receipt

You can look to provide a receipt for your tuition fees. Here, you show IRCC that you have paid a portion of the required balance. Prepaying tuition fees can go a long way to ensuring that your application is approved.

GIC Certificate from a Bank

A Guaranteed Investment Certificate (GIC) is another way to prove you have funds for a Canadian study permit. For a GIC, you deposit a sum and receive return interest - like a term deposit. They are typically quite secure and are required for some student visa application forms.

Show Bank Statements from a Personal Bank Account

You can provide bank statements from your personal bank account. These statements demonstrate the income and savings needed to support yourself in Canada.

Proof of a Canadian Bank Account in Your Name

You must have a Canadian bank account already set up. This account will make it easier for Canadian authorities to confirm that you have sufficient funds. 

Setting up a Canadian bank account can also be an excellent way to show intent. Transferring funds to Canada shows that you fully intend to live in Canada and support yourself during your time there.

Proof of a Student or Education Loan from a Bank

Proving that you have received an educational loan from your bank is another excellent proof of funds. Obtain a relevant letter from your bank to demonstrate this secured funding.

Proof of Payment of Tuition and Accommodation Fees

If you have prepaid tuition or accommodation fees, show proof of this! In addition, showing you have guaranteed accommodation for yourself can help strengthen your application.

Letter from a Person or Institution Funding Your Studies

Suppose you have either a personal or institutional sponsor. In that case, a letter from them and a demonstration that they can fund your studies is essential. You can use this information to support your proof of funds documentation.

Scholarship or Funding from Your Educational Institution

You could be receiving a scholarship or other funding from the place you are studying at. In this case, you can submit proof of this funding to IRCC.

Key Takeaways

You must prove that you can support yourself and any family members or dependents accompanying you during your time in Canada. You are not required to provide evidence that you’ve paid for your tuition fees past your first year of study. But that’s only the case if your proof of funds raises no red flags.

BorderPass can help with the application process and provide proof of funds. Acceptable forms of proof include bank statements, proof of an educational loan, prepaid tuition fees, and other documents detailed above. BorderPass will guide you through uploading the correct documents during your application.

Single students must demonstrate they can access CAN $20,635 (not including tuition) per year. This amount is the minimum for all provinces besides Quebec.

Living expenses will vary between where places and are dependent on how you intend to spend your time. It’s a good idea to research living costs for your particular area before beginning your application.

You must also demonstrate you can cover the first year of your tuition. Remember, the CAN $20,635 required for a single student does not include tuition fees.

If the assessors deem that you have an insufficient sum to cover your expenses while in Canada, you’ll be refused. This is because you are unlikely to be able to complete your course of study successfully.

FAQs

What are the Financial Requirements for Studying in Canada?

You will need to pay your (first year) tuition fees and your flights and hold at least CAN $20,365 in addition to these costs.

How Much Money Do You Need to Prove to Study in Canada?

You must pay for your tuition, travel, accommodation, and more. Depending on your course costs, these expenses could total CAN $40,000 or more.

Do I Need to Prove Where the Money Comes From?

IRCC prefers evidence in some forms (e.g., GICs or educational loans). However, you do not need to prove where the income comes from in full.