Under the IRCC guidelines updated in July 2025 (which remain in effect throughout 2026), a family of 7 applying for Permanent Residency via Express Entry must demonstrate exactly $40,392 CAD in unencumbered settlement funds. For every additional family member beyond 7, you must add exactly $4,112 CAD to your minimum required bank balance.
Relocating a large family to Canada is a massive undertaking. To ensure that new immigrants can properly settle and support themselves without immediate reliance on government assistance, Immigration, Refugees and Citizenship Canada (IRCC) enforces strict Proof of Funds (POF) requirements. 💰
For large families moving to hubs like Toronto, Calgary, or Saskatoon, coming up with the correct amount of liquid cash is often the hardest part of the Express Entry process. The required amounts are based on Canada’s Low Income Cut-Off (LICO) figures, which are updated annually. Submitting a flawless financial profile with the help of a reputable law firm ensures your application will not be rejected over a technicality.
Step-by-Step Process in Canada
Whether you are applying under the Federal Skilled Worker Programme (FSWP) or the Federal Skilled Trades Programme (FSTP), providing acceptable proof of settlement funds involves a highly specific documentation process.
Step 1: Count Your Family Members Accurately
The biggest mistake applicants make is miscounting their family size. You must count yourself, your spouse or common-law partner, and all dependent children under age 22. Critically, you must include them even if they are Canadian citizens, or even if they are not travelling to Canada with you. 👨👩👧👦
Step 2: Check the Updated July 2025 LICO Chart
Log onto the official IRCC website to verify the exact settlement fund requirement for your specific family size. Because these numbers adjust for inflation periodically (with the current chart effective since July 28, 2025, and remaining valid through 2026), relying on outdated figures can lead to instant application refusal.
Step 3: Consolidate Your Liquid Assets
IRCC requires your funds to be “unencumbered,” meaning they cannot be borrowed. Sell off physical assets (like real estate or vehicles) well in advance, and move the cash into accessible savings or chequing accounts. The money must be readily available to you when you land in Canada. 💵
Step 4: Request the Official Bank Letters
You cannot simply screenshot your online banking app. You must visit your financial institution and request official letters printed on the bank’s letterhead. The letter must list all your account numbers, current balances, the average balance over the past six months, and any outstanding debts like credit cards or loans.
Step 5: Maintain the Balance Until Landing
Your funds must remain at or above the minimum threshold from the moment you submit your Express Entry profile until the day you receive your Permanent Resident visa and physically land in Canada. Do not spend the money during the processing period. 💲
Acceptable vs. Unacceptable Proof of Funds
| Asset Type | Accepted by IRCC? |
|---|---|
| Cash in Chequing or Savings Accounts | Yes, fully accepted. |
| Fixed Term Deposits / GICs | Yes, as long as they can be cashed out if needed. |
| Real Estate Equity or Cars | No, physical property does not count until sold for cash. |
| Personal Loans from Family | No, funds must be unencumbered and strictly yours. |
| Mutual Funds or Stocks | Yes, but they are subject to volatility checks. |
How Much Does it Cost in Canada?
Beyond proving you have the required $40,392 CAD (for a family of 7) in settlement funds, a large family must also prepare for substantial federal processing fees. As of May 2026, expect to pay:
- Principal Applicant: Processing fee of $990 CAD plus the Right of PR fee of $600 CAD.
- Spouse or Partner: Processing fee of $990 CAD plus the Right of PR fee of $600 CAD.
- Dependent Children: Processing fee of $270 CAD per child. (For a family of 7 with 5 children, this adds $1,350 CAD).
- Biometrics: $170 CAD maximum per family.
How Long Does the Process Take?
Obtaining the official bank letters usually takes 1 to 2 weeks depending on your bank’s internal processes. Once your Express Entry profile is submitted, it remains valid for 12 months. If you are invited to apply (ITA), standard processing for the PR application is typically 6 months. ⌛
Frequently Asked Questions (FAQ)
Do I need Proof of Funds if I have a valid job offer in Canada?
Generally, no. If you have a valid, LMIA-supported job offer in Canada and are currently authorized to work there, or if you are applying under the Canadian Experience Class (CEC), you are typically exempt from showing proof of settlement funds.
Can I use a gift deed from my parents as Proof of Funds?
Yes, but it must be a genuine gift, not a loan. You will need a notarized Gift Deed confirming that the money does not need to be repaid, and you must show the transfer of funds into your account.
What happens if the exchange rate drops while my application is processing?
IRCC assesses the funds in Canadian Dollars (CAD). If your home currency drops significantly and your balance falls below the IRCC requirement, your application could be refused. It is wise to maintain a buffer of at least 5% above the minimum.
Can I pool my money with my spouse’s accounts?
Yes. You can use funds held in a joint account. You can also use funds held entirely under your spouse’s name, provided you include a signed letter from them proving you have unrestricted access to the money.
Calculating LICO requirements and proving unencumbered funds for a large family can be a highly technical procedure. To avoid devastating delays or refusals, consider using our directory to find a dedicated Canadian immigration lawyer who can professionally review your financial documents before you submit.
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