Are you thinking about starting your student journey in Canada? How exciting! Something that you’ll run into when applying for your Canadian study permit is the need to show “proof of financial support.” In fact, according to Immigrations, Refugees and Citizenship Canada, 10% of students who wanted to come to Canada from 2019 to 2021 were rejected due to a lack of proof of financial support.
But what does that even mean? And what are some ways to increase your chances of study permit approval? We’ll answer all of these questions in this article, as well as ApplyBoard can help you get proof of financial support with a Guaranteed Investment Certificate (GIC).
Read our blog to find out more about GICs and how they can help you study in Canada.
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 in another country. They also want to make sure that you or the people helping you (like your parents) have a steady income.
Immigration officers are also more likely to approve your visa if you have the funds to support yourself for the entire length of your program. And don’t worry—even if you don’t necessarily have the funds for your entire study duration at your disposal, you just need to prove that you’re likely to have it in the future. If you’re planning to bring dependents (like your family) with you, you’ll need to prove you can take care of them too.
Note: As of January 1, 2024, the minimum financial requirements for students increased from C$10,000 to C$20,635.
Ways to Show Proof of Financial Support
Depending on your circumstances, 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
It can be helpful to learn about some financial terms and what they mean to better understand ways to show proof of financial support. Here are some important financial terms that are commonly used, along with their definitions.
- Interest: Extra money that you get over time when you keep your funds in a bank or invest it; you can think of it as payment for letting the bank use your money.
- 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: Money invested by many people that are used to buy different types of investments, where everyone who invested in it will either make or lose money.
- Bank statements: A type of report from the bank that shows how much money you have in your account and all the transactions you’ve made.
- Savings Account: A bank account where you can keep your extra money; the bank keeps it safe and helps it grow a little by giving you a small amount of interest over time.
Just getting started planning your finances? Read these important financial questions to ask when you’re planning on studying abroad.
GICs for Proof of Financial Support
Most ways to show proof of financial support come from banks. These include opening a Canadian bank account under your name, receiving a loan from a bank, or bank statements. However, there’s one especially easy banking solution for students to use when showing proof of financial support: a Guaranteed Investment Certificate (GIC).
Important: If you plan to use the Student Direct Stream to apply to study in Canada, you’ll be required to apply for a GIC.
What is a GIC?
Banks offer GICs to international students to put their money in and get back interest over time. This means that if you deposit money into your GIC account, you’ll not only receive your deposit back (which is why it’s called a “guaranteed investment”), but you’ll also gain additional money by keeping it in the bank longer.
Having a GIC is helpful because the interest you gain from one is better than what you might receive from a savings account. Also, unlike stocks or mutual funds, they’re more secure, in that you’ll never run the risk of losing the money you put in.
And, best of all, a GIC is one of the easiest ways to show proof of financial support. Talk about a win-win scenario!
How to Apply for a GIC
Want to hear even better news? ApplyBoard has partnered with the Royal Bank of Canada (RBC) and Toronto Dominion (TD) Bank, two of Canada’s largest banking institutions, to help international students like you get proof of financial support so you can achieve your Canadian study abroad dreams. Here’s how you can apply:
- Once you have a letter of acceptance (LOA) from an eligible Canadian college or university, you can apply for a GIC with RBC or TD through ApplyBoard
- Once you’re approved, complete and submit your application, and set up your investment account
- Deposit funds in your GIC account and activate your account, and include your certificate in your study permit application to make it even stronger
- Once you arrive, visit your nearest RBC or TD branch in Canada to set up your GIC payments
We hope this blog helps you understand what your proof of financial support options are for your Canadian study permit, as well as the financial options available to you through ApplyBoard’s partnership with RBC and TD. Best of luck!
Ready to make your application stand out? Apply for an RBC GIC today!
