Are you still thinking about studying in Canada? If yes, you need to be aware of the importance of providing “proof of funds” when applying for your Canadian study permit. Surprisingly, 10% of students who applied to come to Canada between 2019 and 2021 were denied due to insufficient proof of financial support, according to IRCC. Therefore, Don’t let this happen to you – make sure you’re fully prepared!
But what does that even entail? And what are some ways to increase your chances of study permit approval? This could be your question, right? They will be addressed as you delve into this article
What is Proof of Financial Support?
Proof of financial support means showing that you have enough money to take care of yourself while you study abroad. They also want to make sure that you or the people helping you (like your parents) have a steady income.
However, Sufficient funds boosts your chances of getting your visa approved. Don’t worry if you don’t have funds for your entire study duration, you just need to prove you’ll have it in the future.
Note: You will need to show more If you are planning to bring dependents (like your family) with you.
Ways to Show Proof of Financial Support
The ways you can show proof of financial support can include the following financial documents:
- Proof of a Canadian bank account (in your name, with the required amount in it)
- Proof of a student or educational loan from a bank
- Bank statements from the past four months
- A bank draft that may be converted into local currency
- Proof that you’ve paid tuition and housing fees
- A letter from the person or school giving you money
- Proof of funding paid from within the destination country (if you have a scholarship or are in a government-funded educational program)
Banking Terms and Definitions for Proof of Funds
Understanding financial terms is crucial for demonstrating financial support. therefore, the key terms and definitions are as follow;
Interest: this is the cost of borrowing or the returns from an investment. Borrowers see it as the interest rate, while investors view it as the annual percentage yield. (APY).
Stocks: Small percentages of ownership in a company that you can buy, where if the value of the percentages increases or decreases, you will either make or lose money.
Mutual funds: Pooling money from multiple individuals to purchase various investments with each investor potentially gaining or losing money.
Bank statements: this is a type of report from the bank that shows how much money you have in your account and all the transactions you’ve made within a period.
Savings Account: A bank account where you can keep your extra money and the bank keeps it safe and helps it grow a little by giving you a small amount of interest over time.
GICs for Proof of Funds
Banks provide the majority of ways to demonstrate proof of financial support. however, applying for a student visa in Canada without a Guaranteed Investment Certificate (GIC) is not possible. therefore, With regard to Canadian visa applications, the GIC is a compulsory component. This involves opening a Canadian bank account under your name, obtaining a loan from a bank, or providing bank statements.
What is a GIC?
A Guaranteed Investment Certificate (GIC) is a Canadian financial product recognized for its unique attributes, offering a predetermined rate of return within a specified timeframe. in other words, GICs are characterized by their conservative risk profile, resulting in comparatively lower returns compared to more dynamic investment alternatives such as stocks, bonds, or mutual funds.
In Canada, a GIC is a financial arrangement for studying. It involves depositing two years’ worth of fees and living expenses before obtaining full university acceptance and a student visa. However, This ensures timely tuition payment and provides a monthly living stipend. Therefore, a GIC of at least C$10,000 is a crucial requirement for the Study Direct Stream (SDS), proving your financial capability during your stay in Canada.
Why is GIC needed?
You need GIC for the following purposes:
- It serves as a symbol of surety/guarantee to the Canadian government that you have sufficient funds to take care of your living expenses for a period of one year in Canada.
- Also, For easy and quick Canadian study visa application and processing. To gain Canadian study visa, students need to submit a proof of sufficient funds. A GIC of C$10,000 from an approved Canadian bank acts an evidence of funds for your Canadian study permit/visa.
How to Apply for a GIC
Step 1: Register for bank secured email service.
Register for the secure emails service of the Canadian bank. After registering, you will receive a password that you can use to access your protected email account. The GIC Application Form will be sent to your secure email account.
Step 2: Submit the Student GIC Program Application
After registering for a secure email account, you will then get an email with a link to the Student GIC Program application form. Students can submit the Student GIC Program application form online.
Step 3: Fund your account
Upon submission of the Student GIC Program Application, you’ll receive an ‘Investment Account Number’ along with funding details on your secure email. Fund the ‘Canada Student GIC Program’ account with C$10,000, plus C$150 as processing fee.
Step 4: Apply for Study Permit/Visa
Apply for the Canadian study permit/visa online and submit a copy of your ‘Investment Balance Confirmation’ along with your Study Visa application. The visa processing will be quick and convenient.
Step 5: Complete the documentation formalities in Canada
Upon your arrival in Canada, it is essential that you visit any of the bank branches and complete the necessary documentation formalities, such as opening a personal bank account.
We hope that this blog has given you a better idea of the different options available to demonstrate your financial support when applying for a Canadian study permit.
Are you ready to pursue your studies in Canada? If you’re ready to take the next step and pursue your studies in Canada, apply here!