How IRCC’s Incremental Cost-of-Living Adjustments Might Increase Proof-of-Funds Required From Applicants
November 26, 2025
|
Each year, Immigration, Refugees and Citizenship Canada (IRCC) reviews the proof-of-funds (POF) requirements for immigration applicants. These adjustments ensure that newcomers arrive with sufficient financial resources to settle in Canada successfully. In 2025, cost-of-living increases could once again raise the settlement funds threshold, directly impacting applicants under programs such as Express Entry and the Federal Skilled Worker Program.
Why Does IRCC Adjust Proof of Funds?
Canada’s economy experiences inflation and rising living expenses, just like anywhere else. IRCC bases settlement fund updates on the Low-Income Cut-Off (LICO)
Who Needs to Show Proof of Funds?
Proof-of-funds requirements primarily apply to candidates in the following categories:
- Express Entry candidates under the Federal Skilled Worker Program
- Applicants under the Federal Skilled Trades Program
- Other economic immigration programs where job offers are not mandatory
Applicants with a valid job offer or those applying under the Canadian Experience Class (CEC) usually do not need to show settlement funds.
How Are the Funds Calculated?
The required amount depends on family size. For example, a single applicant needs fewer funds compared to a family of four. The formula typically increases incrementally for each additional family member. In 2025, applicants may see an increase of a few hundred dollars or more compared to the 2024 thresholds.
Practical Example
Let’s say the proof-of-funds requirement for a single applicant in 2024 was 13,757 CAD. If IRCC applies a cost-of-living adjustment of 3%, the new threshold in 2025 could be around 14,170 CAD. While this increase may seem modest, failing to update your documentation can result in application rejection.
How to Prepare for Proof-of-Funds Updates
- Check IRCC’s website regularly for the official POF table.
- Maintain extra funds in your account to account for adjustments.
- Document your funds with clear bank statements that meet IRCC standards.
- Avoid last-minute transfers that could raise questions about fund legitimacy.
What Counts as Proof of Funds?
IRCC accepts liquid and transferable assets such as:
- Cash in savings or chequing accounts
- Fixed deposits that can be liquidated
- Official bank statements and letters
Assets like real estate or vehicles generally do not qualify unless sold and reflected as liquid funds in a bank account.
Tips for Applicants
- Always keep a cushion above the minimum requirement.
- Convert your local currency into Canadian dollars to check the equivalent value.
- Plan for fluctuations in exchange rates if your funds are not in Canadian currency.
IRCC’s annual cost-of-living adjustments directly affect proof-of-funds requirements. As an applicant, staying ahead of these changes can protect you from unnecessary delays or refusals. By maintaining sufficient and well-documented funds, you ensure your Canadian immigration journey continues smoothly in 2025.
FAQs
How Often Does IRCC Update Proof-of-funds Requirements?
IRCC updates the proof-of-funds table annually, usually in the first half of the year, to reflect new cost-of-living data.
Do I Need Proof of Funds if I Already Have a Job Offer in Canada?
No. Applicants with a valid job offer or those applying under the CEC typically do not need to show settlement funds.
Can I Use Property or Gold as Proof of Funds?
No. Proof of funds must be in liquid, transferable form, such as cash in bank accounts or fixed deposits that can be withdrawn. Assets like property, gold, or vehicles do not qualify.