Sunday, April 19, 2009

Settlement funds is not just a show money




UPDATE: 2011 Settlement Funds requirement
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Update (Jan 19, 2010): Settlement Funds Requirement - January 1st to December 31st, 2010


If you are applying under Federal Skilled Worker program, part of the requirement before you will be issued visa is that you must have sufficient settlement funds.

Settlement funds is not just a show money. You must be able to satisfy the Visa Officer that the funds you will declare is unencumbered and that it is available for use on your initial settlement in Canada.

The amount of money you need to support your family is determined by the size of your family. These amounts are updated every year.

Number of
Family Members

Funds Required
(in Canadian dollars)

1

$10,833

2

$13,486

3

$16,580

4

$20,130

5

$22,831

6

$25,749

7 or more

$28,668



To establish that you have enough settlement funds, you need to provide original bank certificate. Since the objective is to convince the Visa Officer that the funds you declare is available for use, unencumbered and not just borrowed, it will help if will also submit bank statements, copy of bank passbooks and or Certificate of Time Deposits.

Do not worry if you do not have long banking transaction history showing the accumulation of your funds. What is important is that you be able to explain, if asked, where din your money came from.

For example, you sold one of your properties to come up with the required funds. You then deposited the proceeds in a new bank you have opened. It will of course appear that the account was just newly opened and you have made a one-time deposit of, say, P500,000.00. Will that be a problem? No. That is because you can simply explain where did that money came from supported by the deed of sale.

Now, if you have real properties under your name, it is best that you also declare them in your Personal Net Worth Statement as well. As long as you have enough funds, it will never be a problem even if you do not have real properties. So there's no need to ask your parents to transfer those land titles under your name. :-)

Settlement fund requirement is no longer required if you have an Arranged Employment Opinion (AEO). It is not easy to find an employer who is willing to process an AEO for you but depending on how you are willing to help yourself, it is possible. Start looking for job vacancies using this Canada Jobs Portal. Remember though, that it is always a numbers game. The more applications you send, the higher the chance that an employer will hire you.

Again, settlement funds is not just a show money. You need it to support yourself and your family on your initial settlement in Canada.