Meeting Financial Requirements: Key Steps for International Students Planning to Study in Canada

Studying abroad offers a unique chance to immerse yourself in new cultures, gain valuable academic insights, and broaden your horizons. However, navigating the financial logistics is crucial. To study in Canada as an international student, you must demonstrate sufficient proof of financial support to cover your study and living expenses, including funds for any accompanying family members. Notably, between 2019 and 2021, Immigration, Refugees, and Citizenship Canada (IRCC) reported that 10% of student visa applications were rejected due to insufficient funds.

To avoid such setbacks, thorough preparation is essential. This article discusses what proof of financial support entails and how to obtain a Guaranteed Investment Certificate (GIC) to meet these requirements.

Understanding Proof of Financial Support

Immigration officials require proof that applicants have sufficient funds to cover at least the first year of tuition and living expenses in their chosen destination. This includes provisions for any accompanying family members. Providing evidence of financial stability, especially for longer programs, increases the likelihood of visa approval.

The required proof of funds varies among study-abroad destinations. In Canada, the minimum financial requirement for students is C$20,635. For comparison, Australia requires AUS$24,505, the UK requires slightly over £1,100 (US$1,660) per month of study (equating to US$14,940 for a nine-month program), and Germany requires €11,208 (US$11,952) for one year.

How to Show Proof of Financial Support

Here are several ways to demonstrate proof of financial support:

• Canadian Bank Account: Proof of a Canadian bank account in your name with the requisite amount deposited.
• Student Loan: Evidence of a student or educational loan obtained from a bank.
• Bank Statements: Bank statements covering the past four months to showcase financial stability.
• Bank Draft: A bank draft that can be converted into the local currency of the destination country.
• Payment Documentation: Documentation confirming payment of tuition and housing fees.
• Support Letter: A letter from the individual or institution providing financial support.
• Funding Proof: Proof of funding received from sources within the destination country, particularly for scholarship recipients or participants in government-funded educational programs.

Using GICs for Financial Support

One straightforward banking solution for students seeking to show proof of financial support is a Guaranteed Investment Certificate (GIC). If you plan to apply to a Canadian institution under the Student Direct Stream, you will be required to obtain a GIC.

What is a GIC?

A GIC is a secure investment offered by banks to international students. It guarantees the return of the initial deposit along with additional earnings over time. GICs typically offer higher interest rates than savings accounts and are more secure compared to investments in stocks or mutual funds, as the principal amount invested is protected. A GIC serves as one of the simplest methods to demonstrate proof of financial support, providing a mutually beneficial arrangement for students.

Steps to Apply for a GIC

1. Research Providers: Explore GIC offerings from major banks like RBC, TD Bank, and Scotiabank. Choose a provider based on interest rates and terms.
2. Gather Documents: Prepare your passport, letter of acceptance (LOA), and proof of financial stability.
3. Complete Application: Fill out the online application form and submit it along with the required documentation.
4. Fund the Account: Transfer funds to your Canadian bank account or directly deposit them into the GIC account. Follow the instructions to activate the account. Once activated, you’ll receive confirmation and your GIC certificate.
5. Include GIC in Study Permit Application: Use the GIC certificate as proof of financial support when applying for a study permit.

International students can apply for a GIC through ApplyBoard’s partnership with leading Canadian banks like the Royal Bank of Canada (RBC) and Toronto Dominion (TD) Bank. By leveraging ApplyBoard’s GIC programs with RBC and TD, students can access streamlined financial support options to pursue their Canadian study abroad aspirations.

Ensure a smooth journey toward your academic goals in Canada by securing your financial support. Prepare thoroughly and embark on an enriching educational experience!