In a significant policy update, the Government of Canada has raised the minimum financial threshold required for immigration applicants under the Express Entry system, specifically those applying through the Federal Skilled Worker Program (FSWP) and the Federal Skilled Trades Program (FSTP). Starting July 7, 2025, applicants must now demonstrate higher financial readiness, with an increase of CAD 500 across all family sizes.

This change, officially announced by Immigration, Refugees and Citizenship Canada (IRCC), underscores Canada’s commitment to ensuring that newcomers can adequately support themselves and their dependents upon arrival.

What Has Changed?

Previously, in 2024, the minimum proof of settlement funds required for a single applicant was CAD 14,690. With the 2025 update, that figure has now increased to CAD 15,263, marking a 3.4% hike. This update reflects the annual adjustment based on Canada’s Low-Income Cut-Off (LICO), which aims to ensure that immigrants have sufficient funds to meet basic living costs when they arrive.

The new proof-of-funds requirement applies only to applicants under the FSWP and FSTP streams who do not have:

• A valid Canadian job offer, or

• Authorisation to work in Canada.

Those applying under the Canadian Experience Class (CEC) are exempt from this requirement, as are applicants with verified job offers and employer-based work permits. However, even in such cases, proof of exemption must be uploaded with the application.

Updated Settlement Fund Thresholds by Family Size

Here is a breakdown of the 2025 proof-of-funds requirements, reflecting the recent changes:

These figures reflect what IRCC believes is the minimum amount needed to sustain a modest lifestyle upon landing in Canada.

Who Does This Affect?

If you are planning to immigrate to Canada through Express Entry under FSWP or FSTP, and do not currently have a job offer or a Canadian work permit, you are required to meet these updated settlement fund thresholds. This includes applicants residing abroad who have not yet secured employment in Canada.

However, those with valid job offers or applying through CEC do not need to provide settlement funds, though they must still upload a letter confirming their exempt status.

What Constitutes Acceptable Proof of Funds?

The IRCC has laid out strict requirements for financial documentation. Applicants must provide:

• Official bank or financial institution letters, printed on the institution’s letterhead.

• The letter must include:

  • Contact information (address, phone number, email)

  • Account numbers

  • Date account was opened

  • Current account balances

  • Average balance over the last six months

  • Any outstanding debts or obligations

Funds must be liquid and accessible, meaning they must be available both at the time of application and upon arrival in Canada. Acceptable funds include cash, savings, and other easily accessible financial assets. Home equity, borrowed money, and locked investments do not qualify.

Why This Matters

The settlement fund requirement is a crucial part of Canada’s immigration screening process. It ensures that new immigrants do not become financially dependent on public resources in the early stages of settlement. By increasing the threshold, Canada aims to reflect rising living costs and provide a more realistic benchmark for economic self-sufficiency.

Important Clarification for International Students

In a related development, the Canadian government recently extended eligibility criteria for the Post-Graduation Work Permit (PGWP) program. Originally, hundreds of non-degree certificate and diploma programs were expected to lose PGWP eligibility by June 25, 2025. However, the updated policy now delays implementation until early 2026.

This extension means that:

• Students who applied for study permits between June 25 and July 4, 2025 are still eligible under the existing PGWP rules.

• The list of PGWP-eligible programs has expanded from 920 to 1,107, while 178 programs were removed, including all transport-related fields.

• An additional 119 new programs, mainly in education, were added to the eligibility list.

This change came in response to widespread concern from institutions, students, and advocacy groups over the speed and scope of the policy shift. The extension gives affected students more time to adjust their plans or change institutions if needed.

It’s worth noting that the exemption for bachelor’s, master’s, and PhD programs still stands, and only those studying at least eight months in designated institutions will qualify for a PGWP.

Final Thoughts

For prospective immigrants under Canada’s Express Entry system, the increased proof-of-funds requirement may seem like a small adjustment, but it can significantly affect an applicant’s readiness and documentation process. It’s essential for applicants to ensure they:

• Understand which stream (FSWP, FSTP, or CEC) they are applying through.

• Know whether they qualify for an exemption from proof-of-funds.

• Prepare and submit the correct banking documentation that meets IRCC’s standards.

• Monitor further policy updates that could affect their immigration or post-study plans.

In the bigger picture, this financial update reflects Canada’s continued efforts to balance immigration growth with sustainability, ensuring that newcomers are well-prepared to integrate into the Canadian economy.