Thousands of visa applications are rejected yearly due to insufficient proof of funds. Showing sufficient proof of funds for a Canada visa application is crucial, as it is an essential tool for telling the official authorities that you can support yourself and your family members or relatives who accompany you.
This article aims to help understand the proof of funds rejection reasons for a Canada visa application and navigate the financial requirements of a Canada visa application. Remember, it’s not just about having money but about proving that you can support yourself and your family during your stay in Canada.
Updated Proof of Funds Requirement for 2024
- Immigration, Refugees, and Citizenship Canada (IRCC) update the proof of fund requirements every year.
- The latest update was on 28th May 2024 for Canada PR via Express Entry.
- The revised amount is based on 50% of the low-income cut-off totals.
- The amount of money you would require to stay in Canada will depend on the size of the family, i.e. the number of family members.
- You can show these funds through official bank letters detailing current balances, average balances over the past six months, and any important debts or investment account details.
- The required funds for a single family member is CAD 14,6903.
| Number of Family Members | Funds Required Now (in CAD) | Funds Required by May 28, 2024 (in CAD) | Percentage Increase (%) |
|---|---|---|---|
| 1 | 13,757 | 14,690 | 6.78 |
| 2 | 17,127 | 18,288 | 6.77 |
| 3 | 21,055 | 22,483 | 6.77 |
| 4 | 25,564 | 27,297 | 6.77 |
| 5 | 28,994 | 30,690 | 5.85 |
| 6 | 32,700 | 34,917 | 6.77 |
| 7 | 36,407 | 38,875 | 6.78 |
| Each additional member | 3,706 | 3,958 | 6.80 |
Common Reasons for Proof of Funds Rejection
While you, as an applicant, may be very careful, there still can be scenarios where the proof of funds can get rejected. It is crucial for you to understand the requirements that the immigration authorities are looking for and accordingly prepare your documents, highlighting your proof of funds. Here are a few common reasons why the proof of funds can get rejected:
1. Incorrect Amounts
It is necessary for all applicants applying for a visa to declare the correct amount of funds in Canadian dollars. If this criterion for the minimum requirement is not met, the application might be refused. For example, if you show on your proof of funds an exact amount of 13,757 CAD instead of the required 14,690 CAD, a recently updated requirement, you will get a refusal letter for your application.
2. Failure to Update Funds
It’s essential for you to keep track of the latest visa funds requirements to prevent your proof of funds from being rejected. If you’ve declared a lesser amount based on outdated requirements, you should update your application with the most recent increased amount.
3. Liquidity and Transferability
Funds must be readily transferable and available, unencumbered by debts or other obligations. If the visa officer is not satisfied with the liquidity and the ability to transfer the funds, it may lead to rejection.
Liquidity refers to how quickly and easily your assets can be converted into cash. For instance, if you have money in a savings account, it’s considered highly liquid because you can withdraw it anytime. On the other hand, if your money is tied up in real estate or stocks, it’s less liquid because it takes time and effort to sell these assets and convert them into cash.
Now, let’s consider an example. Suppose you have $15,000 in a savings account and $10,000 in stocks. While the total is $25,000, not all are readily available. If the visa officer checks your funds, they might consider only the $15,000 in your savings account because it’s liquid and can be readily used once you arrive in Canada. The $10,000 in stocks isn’t immediately accessible and might not be counted towards the proof of funds requirement.
Transferability refers to your ability to move your funds from one country to another. If your funds are in a bank account in your home country, you must ensure no international transfer restrictions or limitations.
Moreover, if there are restrictions on international transfers in your home country, it could further complicate matters. Even if you have sufficient funds, the visa officer might not be satisfied if you can’t transfer them to Canada.
4. Currency Fluctuations
Currency values can change frequently due to economic indicators, market speculation, political instability, etc. Applicants must account for exchange rate fluctuations when declaring funds in a foreign currency. The amount should be equivalent to or more than the required funds in CAD on the day of the application submission.
For instance, imagine you have ₹800,000 in an Indian bank account and planning to immigrate to Canada. When you submit your application, the exchange rate is ₹55 to 1 CAD, making your funds equivalent to CAD 14,545.
However, when your application is reviewed, the exchange rate has risen to ₹60 to 1 CAD. This change means your funds are now equivalent to approximately CAD 13,333, slightly less than the required CAD 14,690. This fluctuation in the exchange rate could impact the proof of funds requirement for your application.
5. Account Types
When applying for immigration, the type of bank account you hold can impact your proof of funds.
Savings Accounts: These are generally accepted as proof of funds. The money in a savings account is usually not used for daily expenses, so it’s considered stable. For example, if you have $15,000 in a savings account, this amount will likely remain constant or increase over time, demonstrating your financial stability.
Current Accounts: These are often used for day-to-day expenses, like paying bills or grocery shopping. The balance in these accounts can fluctuate significantly from day to day. For example, you might have $5,000 in your current account at the beginning of the month, but after paying rent, buying groceries, and other expenses, you might be left with $1,000 by the end of the month.
Because of these fluctuations, immigration officers might not consider the funds in a current account as reliable proof of funds. They prefer to see funds that are stable and not likely to be spent before you immigrate.
So, when preparing your proof of funds, it’s generally better to use a savings account or another type of account where the money won’t be spent on daily expenses.
6. Misclassification of Funds
Let’s say you have a personal loan of $15,000 from a bank. You might assume that since this money is in your bank account, it can be used as proof of funds. However, this is a common misconception.
In reality, a loan is not considered an acceptable source of funds for immigration purposes because it’s not your money – it’s borrowed and must be paid back to the lender. Therefore, it’s not a reliable indicator of your financial stability.
On the other hand, money from sources like savings accounts, fixed deposits, or funds from the sale of property that are legally yours and not borrowed are typically accepted as proof of funds.
So, it’s crucial to correctly classify your funds when applying for immigration to avoid potential rejections. Always ensure that the funds you declare are yours, unencumbered by debts or other obligations, and can be readily used to support yourself once you arrive in Canada.
7. Documentation Issues
Providing incomplete or unclear financial documentation, such as bank statements that do not cover the required period, can cause issues. For example, the immigration authorities require bank statements covering the past 6 months to demonstrate your financial stability.
If you only provide bank statements for the past 5 months, this is considered incomplete documentation because it doesn’t cover the full required period. Remember, providing complete and accurate documentation is a vital part of the immigration process, and failing to do so can lead to delays or rejections.
Solutions for Addressing Proof of Funds Rejection
Before applying, ensure your application is filled out correctly, and your proof of funds is well-documented and complete. Here are some strategies to avoid common reasons for proof of funds rejection:
- Stay Updated: Regularly check the IRCC (Immigration, Refugees, and Citizenship Canada) website for the latest requirements and information. If living expenses change, adjust your application accordingly.
- Complete Documentation: Double-check all your financial documents, including bank statements and proof of property, to ensure they’re accurate and complete.
- Reapply Immediately: If your application gets rejected, consider reapplying immediately, especially if you still meet the criteria and the NOC (National Occupational Classification) is open. For instance, if you got rejected because you forgot to submit last month’s bank statement, gather all the documents and reapply immediately.
- Submit a CSE (Case Specific Enquiry): If you believe there has been an oversight, submit a CSE with relevant and complete evidence to show that you met the funds requirement when applying.
- Appeal with Evidence: If you think there has been an oversight, write a detailed letter explaining your situation and provide additional bank statements or other evidence that shows you had enough funds. Present your case politely and with clear, well-documented evidence to persuade the authorities to reconsider your case.
- Seek Professional Advice: When in doubt, always consult a professional. The journey to getting a Canadian visa and qualifying for a permit can be full of uncertainties and stress. By following the tips in this article, you can stay informed and avoid mistakes that might lead to a rejection.
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