Navigating financial requirements: Essential steps for international students to study in Canada

Studying abroad offers students the chance to immerse themselves in new cultures, gain valuable academic insights, and broaden their horizons. Before embarking on this exciting journey, students must navigate the financial logistics required. To study in Canada as an international student, one must demonstrate adequate proof of financial support, covering both study and living expenses, along with a minimum amount for any accompanying family members. Notably, between 2019 and 2021, Immigration, Refugees, and Citizenship Canada (IRCC) reported that 10% of rejected student visa applications were due to insufficient funds.

To avoid such setbacks, thorough preparation is essential. In this article, the discussion will center on what proof of financial support entails and how to obtain a Guaranteed Investment Certificate (GIC) to fulfill these requirements to study in Canada as an international student.

What is Proof of Financial Support?

Immigration officials scrutinize whether applicants possess sufficient funds to cover at least the first year of tuition and living expenses in their chosen destination, including provisions for accompanying family members if applicable. Presenting 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 Australia, it’s AUS$24,505, while in the UK, they require slightly over £1,100 (US$1,660) per month of study (equating to US$14,940 for a nine-month program), and in Germany, £11.208 (US$11,952) for one year.

Ways to Show Proof of Financial Support
The following documents can be used to show proof of financial support:

● Proof of a Canadian bank account, held in the applicant’s name, with the requisite amount deposited.

● Evidence of a student or educational loan obtained from a bank.

● Bank statements covering the past four months to showcase financial stability.

● A bank draft that can be converted into the local currency of the destination country.

● Documentation confirming payment of tuition and housing fees.

● A letter from the individual or institution providing financial support.

● Proof of funding received from sources within the destination country, particularly applicable for scholarship recipients or participants in government-funded educational programs.


GICs for Proof of Financial Support
Several avenues exist for demonstrating proof of financial support. One particularly straightforward banking solution for students seeking to show proof of financial support is a Guaranteed Investment Certificate (GIC). If a student plans to apply to a Canadian institution under Student Direct Stream they will be required to apply for a GIC.

What is a GIC?
GICs are offered by banks to international students as a means to invest their money and accrue interest over time. Depositing funds into a GIC account ensures not only the return of the initial deposit (hence the term “guaranteed investment”) but also additional earnings by maintaining the funds in the bank for a specified period. GICs typically yield 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, presenting a mutually beneficial arrangement for students.

How to Apply for a GIC
Research Providers: Explore GIC offerings from major banks like RBC, TD Bank, and Scotiabank. Select a provider based on interest rates and terms.

● Gather Documents: Prepare your passport, letter of acceptance (LOA), and proof of financial stability.

● Complete Application: Fill out the online application form, and submit your application online or in- person, including any required documentation.

● Fund the Account: Transfer funds to your Canadian bank account or directly deposit into the GIC account. Follow provided instructions to activate the account. Once activated, you’ll receive confirmation and your GIC certificate.

● 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 banking institutions such as 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.