Proof of Funds for Express Entry: Complete Requirements Guide

Understanding Proof of Funds: The Legal Foundation

What this means for you: Under Canada’s Immigration and Refugee Protection Act (IRPA), you must demonstrate financial self-sufficiency to receive permanent residence. This isn’t about having money temporarily—it’s about proving you can establish yourself economically without relying on social assistance.

The proof of funds requirement applies to most Express Entry candidates, but there are important exceptions. You’re exempt if you’re currently authorized to work in Canada AND have a valid job offer from an employer with a positive Labour Market Impact Assessment (LMIA) or your job offer is exempt from requiring an LMIA.

Real mistake we’ve seen: Candidates assuming they’re exempt because they have Canadian work experience, but lacking a current valid work permit. The exemption requires BOTH current work authorization AND a qualifying job offer.

Immigration, Refugees and Citizenship Canada (IRCC) evaluates these funds at two key stages: when you submit your Express Entry profile and again when you receive an Invitation to Apply (ITA). The amounts must be available and accessible—not tied up in investments you can’t quickly liquidate.

Official Resource: IRCC Express Entry Requirements

Minimum Amount Requirements: Getting the Numbers Right

The Government of Canada bases proof of funds requirements on the Low Income Cut-Off (LICO) amounts, which are updated annually. These aren’t just suggestions—they’re mandatory minimums that every applicant must meet.

2025 Proof of Funds Requirements

What this means for you: These amounts represent the absolute minimum. AVID experts strongly recommend having 15-20% above these thresholds to account for currency fluctuations and unexpected expenses during your transition.

If you’re applying from countries with high exchange rate volatility: Keep your funds in Canadian dollars or a stable currency like USD. We’ve seen applications delayed when local currency devaluation dropped candidates below required thresholds between profile submission and ITA.

Family Size Calculations

Your family size includes yourself, your spouse or common-law partner, and all dependent children—regardless of whether they’re accompanying you to Canada. This catches many applicants off-guard.

Real mistake we’ve seen: A single applicant claiming only $14,690 in funds, not realizing their non-accompanying spouse and child still count toward family size, requiring $22,483 instead.

Annual Updates and Strategic Planning

LICO amounts typically increase each year. If you’re planning to apply in early 2026, monitor IRCC’s website for updated figures, usually released in December or January.

Optional—but strongly recommended by AVID experts: Maintain funds at least $2,000-3,000 above minimum requirements. This buffer protects against currency fluctuations and demonstrates stronger financial stability to immigration officers.

Acceptable Financial Instruments: What Counts and What Doesn’t

Not all money is created equal in the eyes of IRCC. Understanding which financial instruments qualify as proof of funds—and which don’t—is crucial for a successful application.

Bank Accounts and Cash Deposits

Primary acceptable sources:

• Checking and savings accounts in your name
• Current accounts with regular transaction history
• High-yield savings accounts
• Money market accounts

Your bank statements must show consistent balances over at least six months, demonstrating the funds aren’t borrowed or temporarily inflated for your application.

What this means for you: If you’ve been moving money between accounts or consolidating funds, do this well before your application. IRCC scrutinizes large, unexplained deposits that appear shortly before application submission.

Investment Portfolios and Securities

Acceptable with proper documentation:

• Publicly traded stocks and bonds
• Mutual funds and ETFs
• Government bonds and treasury bills
• Guaranteed Investment Certificates (GICs)

Critical requirement: These investments must be liquid—easily convertible to cash within 30 days without significant penalties. You’ll need current statements showing market values and liquidity confirmation from your financial institution.

Real mistake we’ve seen: An applicant including retirement funds locked until age 65. IRCC rejected these as they weren’t accessible for settlement purposes.

Pension Funds and Retirement Accounts

Pension funds are generally acceptable if you can access them without penalties. This varies significantly by country and pension type.

If you’re applying from the US: 401(k) and IRA funds are typically acceptable, but you must demonstrate penalty-free access or willingness to pay early withdrawal penalties.

If you’re applying from the UK: Pension funds are generally not acceptable until you reach minimum pension age, with rare exceptions for serious ill-health.

Fixed Deposits and Term Deposits

Fixed deposits and certificates of deposit count toward proof of funds, but you must demonstrate you can access these funds when needed, even if it means paying early withdrawal penalties.

Optional—but strongly recommended by AVID experts: If using fixed deposits, obtain a letter from your bank confirming early withdrawal options and any associated costs.

Unacceptable Sources

These do NOT qualify as proof of funds:

• Borrowed money from any source
• Credit card available credit
• Overdraft facilities
• Funds belonging to someone else (even family)
• Property or real estate (unless converted to cash)
• Business assets or inventory
• Cryptocurrency (due to volatility concerns)
• Loans secured against assets

What this means for you: If significant portions of your funds come from property sales or business liquidation, complete these transactions well before applying and allow the funds to mature in traditional bank accounts.

Documentation Requirements: Getting Your Paperwork Right

Proper documentation can make the difference between approval and refusal. IRCC has specific requirements for financial documentation that must be followed precisely.

Bank Statement Specifications

Essential requirements for bank statements:

• Must be official statements from the financial institution
• Cover the most recent six-month period
• Show account holder name, account number, and branch information
• Display daily closing balances
• Include bank’s official letterhead and contact information

Real mistake we’ve seen: Candidates submitting online screenshots or mobile app exports instead of official PDF statements. IRCC regularly refuses these as insufficient documentation.

If you’re applying from India: Many banks provide statements in local languages. You’ll need certified English translations for any documents not in English or French.

If you’re applying from Nigeria: Due to specific concerns about document fraud, Nigerian applicants often face additional scrutiny. Ensure all bank statements include the bank’s phone number and email for verification.

Letter from Financial Institution

In addition to statements, you need an official letter from each financial institution holding your funds. This letter must include:

• Your name and address
• Account number and type
• Current balance and currency
• Average balance over the past six months
• Date the account was opened
• Bank official’s name, title, and contact information

What this means for you: Don’t wait until you receive your ITA to request these letters. Banks can take 2-3 weeks to issue official letters, and you only have 60 days to submit your complete application.

Investment Documentation

For investment portfolios, provide:

• Most recent quarterly or monthly statements
• Portfolio summary showing current market values
• Letter from investment firm confirming liquidity
• Documentation of any withdrawal restrictions or penalties

Optional—but strongly recommended by AVID experts: If your investments have lost value recently, include a letter explaining the temporary nature of market fluctuations and your total investment timeline.

Currency Conversion Requirements

All foreign currency amounts must be converted to Canadian dollars using the Bank of Canada exchange rate on the date you submit your application.

Critical timing note: Use the exchange rate from the day you submit your complete application, not when you receive your ITA or calculate your initial amounts.

If you’re applying from countries with restricted currencies: Some countries limit currency conversion or have official rates that differ from market rates. Document which rate you’re using and why—IRCC understands these complexities but needs clear explanation.

Translation and Notarization

Any document not in English or French requires certified translation by a member of a provincial or territorial translation association, or someone authorized to administer oaths.

What this means for you: Budget both time and money for professional translation. Poor translations can delay processing or lead to refusal if key financial information is unclear.

Real mistake we’ve seen: Using Google Translate or unofficial translators for bank statements. IRCC requires certified translations, and informal translations can result in application refusal.

Common Issues and Solutions: Avoiding the Pitfalls

Years of experience reviewing Express Entry applications have shown us the most common proof of funds problems—and how to avoid them.

Large Unexplained Deposits

The problem: Sudden large deposits in your accounts within six months of application can trigger concerns about borrowed funds.

The solution: Document the source of any deposit over $1,000 CAD equivalent. Acceptable explanations include:

• Sale of property (with sale agreement and legal documents)
• Bonus or salary payments (with employer letter)
• Gift from family (with gift deed and donor’s bank statements)
• Investment returns or dividend payments (with investment statements)
• Business income (with tax returns and business documentation)

Real mistake we’ve seen: A candidate received a $15,000 inheritance but didn’t document it. The immigration officer suspected borrowed funds and refused the application.

Borrowed Funds Problems

The issue: Any indication that funds are borrowed—even temporarily—can lead to application refusal.

What this means for you: If you need to borrow money to meet requirements, you’re not ready to apply. Wait until you’ve saved sufficient personal funds.

If you’re in a joint family financial system: This is common in many cultures, but IRCC requires individual financial responsibility. Document that shared family funds are genuinely available to you, not just temporarily accessible.

Joint Account Considerations

Joint accounts can be tricky, especially if you’re the secondary account holder or if the primary holder isn’t immigrating with you.

Best practice: If using joint accounts, provide a letter from the other account holder(s) confirming you have full access to the funds and their consent for you to use these funds for immigration purposes.

If you’re married but maintaining separate finances: This is perfectly acceptable, but ensure all funds are clearly in your name or properly documented as accessible to you.

Currency Fluctuation Management

Exchange rate changes can push you below minimum requirements between profile submission and final application.

Strategic approach: Maintain a buffer above minimum requirements, or consider converting funds to Canadian dollars early in the process.

If you’re applying from Argentina, Turkey, or other high-inflation countries: Consider converting to stable currencies as early as possible. We’ve seen candidates lose eligibility due to local currency devaluation.

Preparation Strategies: Setting Yourself Up for Success

Smart preparation can prevent most proof of funds problems. Here’s how seasoned AVID experts recommend organizing your finances for Express Entry success.

Early Financial Planning

Start organizing your proof of funds at least 12 months before you plan to submit your Express Entry profile. This allows time for:

• Building up sufficient savings
• Establishing stable account balances
• Resolving any documentation issues
• Converting investments to more liquid forms if necessary

Account Management Best Practices

Consolidate your funds: While you can use multiple accounts, fewer accounts mean simpler documentation and less chance for errors.

Maintain consistent balances: Avoid large fluctuations in your account balances in the months leading up to your application.

Keep detailed records: Save all documentation related to major deposits or transfers, even if they seem routine to you.

Documentation Timing

Request official letters from financial institutions immediately after receiving your ITA. These letters often have expiration dates, and you want them to be as current as possible when you submit.

Professional Verification

Optional—but strongly recommended by AVID experts: Have a qualified professional review your proof of funds documentation before submission. Small errors in this area can lead to application refusal, and the stakes are too high to leave anything to chance.

Need peace of mind? Let one of our experts walk you through your application.