Funding a Canada migration journey involves significant costs, including government processing fees, language tests, credential evaluations, travel expenses, and proof of settlement funds.
However, before seeking loans for Canadian immigration, you must understand Immigration, Refugees and Citizenship Canada (IRCC) rules regarding borrowed money.
Critical Rule: Unencumbered Funds vs. Personal Loans
IRCC strictly mandates that required settlement funds for Permanent Residency (such as Express Entry – Federal Skilled Worker Program) must be unencumbered.
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What is prohibited: You cannot take a direct personal loan or bank loan to show as your required settlement funds (Proof of Funds). Bank letters submitted to IRCC must explicitly list all outstanding loans and credit liabilities. If an officer sees a loan offsetting your liquid bank balance, your application will be refused.
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What is permitted: You can use personal loans, lines of credit, or specialized relocation loans to pay for non-settlement upfront expenses (e.g., immigration consultant fees, language tests, application processing fees, or travel tickets).
1. Commercial Banks & Personal Lines of Credit
For pre-departure expenses and application costs, traditional commercial banks in your home country remain the primary source of financing.
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Unsecured Personal Loans: Offered based on credit score, proof of employment, and steady income. These can cover upfront costs like IRCC processing fees ($950 CAD per adult plus $575 CAD Right of Permanent Residence Fee).
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Secured Loans (Asset-Backed): Equity in real estate or fixed deposit collateral can be leveraged to secure low-interest personal loans.
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Important Note on Asset Sales: While borrowed money cannot be used directly as proof of funds, the outright sale of personal property or real estate produces unencumbered liquid cash that is accepted by IRCC, provided you maintain a clear paper trail (bill of sale, deed transfer, and bank deposit record).
2. Specialized International Student & Newcomer Lenders
If you are migrating to Canada via a Study Permit or transitioning from a study pathway to permanent residence, specialized international lenders provide non-collateral loans.
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Prodigy Finance & MPOWER Financing: These organizations specialize in education loans for international students attending designated learning institutions (DLIs) in Canada. They assess future earning potential rather than requiring local collateral or a co-signer.
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International Student Financial Services: These funds can cover tuition and upfront living costs, satisfying study permit financial requirements.
3. Canadian Financial Institutions (Post-Arrival & Settlement Financing)
Canadian major banks (“The Big Five”) offer dedicated Newcomer Packages to assist immigrants upon landing or after obtaining approval:
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RBC (Royal Bank of Canada) Newcomer Program: Offers credit cards without Canadian credit history, personal credit lines, and car loans.
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Scotiabank StartRight Program: Provides initial credit lines, international money transfers, and specialized savings accounts to build Canadian credit immediately.
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TD Canada Trust & CIBC Newcomer Solutions: Offer credit cards, mortgage options, and personal lines of credit designed for incoming permanent residents and temporary workers.
4. Legal Financial Strategies for Settlement Funds (PoF)
Because borrowed money cannot count toward your IRCC Proof of Funds, candidates utilize these legal, fully compliant financial options:
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Notarized Financial Gift Letters: Immediate family members (parents, siblings, or spouse) can legally gift you money for your relocation. The funds must be transferred to your account with a notarized gift letter stating the money is a gift and does not need to be repaid.
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Liquidating Investments: Redeeming mutual funds, stocks, bonds, or fixed deposits into a liquid savings account.
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Joint Accounts: Combining liquid savings with an accompanying spouse or partner.
2026/2027 Proof of Funds Minimum Requirements
If your immigration pathway requires proof of settlement funds, you must meet or exceed these minimum liquid balance thresholds based on family size:
| Family Members | Required Settlement Funds (CAD) |
| 1 Person | $15,263 |
| 2 People | $19,001 |
| 3 People | $23,360 |
| 4 People | $28,362 |
| 5 People | $32,168 |
| Each Additional Member | +$4,112 |