Proof of funds narrative (settlement funds)

IRCC requires proof of settlement funds for most PR programs (FSW, FSTP, PNP-Base, SUV, SE Persons, Caregivers). CEC is exempt if applicant is legally working in Canada. The thresholds (2026, verify current):

  Family of 1 → CAD 14,690
  Family of 2 → CAD 18,288
  Family of 3 → CAD 22,483
  Family of 4 → CAD 27,297
  Family of 5 → CAD 30,690
  +CAD 3,500-3,800 per additional family member

Funds must be:
  (a) Available (liquid, not encumbered)
  (b) Sustained over 6 months (not recently injected to qualify)
  (c) Transferable to Canada
  (d) Source-of-funds disclosable

Draft a proof-of-funds narrative for [CLIENT_NAME], family of [FAMILY_SIZE], with CAD [FUNDS_AMOUNT_CAD] available.

§1 — THRESHOLD CONFIRMATION (40-60 words)

For [FAMILY_SIZE]: minimum required = [calculate from table].
Applicant has: CAD [FUNDS_AMOUNT_CAD].
Coverage: [exceeds / meets / below] minimum by [X]%.

§2 — FUNDS COMPOSITION (120-150 words)

For [ACCOUNT_TYPES] (each one):
  • Account number (last 4 digits OK for narrative; full required in actual evidence)
  • Bank / institution name
  • Account type (savings, FD, mutual fund, demat, brokerage)
  • Balance in INR (current)
  • Equivalent CAD at official conversion rate at time of statement
  • Date of statement

Required document checklist:
  □ Bank statements for ALL accounts for 6 months
  □ FD certificates (face value + maturity)
  □ Mutual fund statements (latest)
  □ Demat account statements
  □ All statements dated within 30 days of application submission

Currency conversion:
  • Use Bank of Canada or RBI mid-market rate at time of application
  • Document the rate used + date

§3 — SOURCE OF FUNDS NARRATIVE (200-250 words)

[FUNDS_SOURCE] expanded:

Common Indian-applicant funds sources:
  • Salary savings (over years of employment)
  • Family business profits (need to show ITRs + business registration)
  • Sale of inherited property (ancestral property)
  • Sale of own property (apartment, plot of land)
  • Inheritance (with succession certificate / will probate)
  • Gift from parent/spouse (with gift deed + sender's source-of-funds)
  • Education loan disbursement
  • Sale of investments (mutual funds, shares — short term capital gains affect tax)

Each source must be documented:
  • Salary savings: Salary slips, T4 / Form 16, NOA / ITR, employer's confirmation
  • Property sale: Sale deed, registry document, capital gains tax filing
  • Inheritance: Will, succession certificate, court probate, death certificate
  • Gift: Gift deed (registered with Stamp Duty), sender's source-of-funds documentation

§4 — RED FLAGS + AVOIDANCE (100-130 words)

Avoid:
  • Large recent deposits without explanation (officers flag deposits >25% of total within 90 days)
  • Funds borrowed from family / friends without sustained ownership
  • Accounts opened recently to "park" funds for visa
  • Funds held in name of family member rather than applicant (allowed only with strict gift documentation)
  • Cash withdrawals + redeposits to manipulate the sustained-6-month requirement

If applicant has recent large deposit:
  • Disclose immediately with full source explanation
  • Attach proof of source (sale deed, insurance maturity, inheritance, FD maturity)
  • Do not "explain away" — explain fully

§5 — SETTLEMENT FUNDS LETTER (200-250 words)

Format:

"To: Visa Officer, IRCC
Re: Settlement Funds — Permanent Residence Application
Applicant: [CLIENT_NAME]
Date: [TODAY]

Pursuant to my permanent residence application under [PROGRAM_NAME], I confirm the availability of settlement funds totalling CAD [FUNDS_AMOUNT_CAD], exceeding the required threshold of CAD [REQUIRED_AMOUNT] for a family of [FAMILY_SIZE].

The funds are composed of:

[Account 1]: [Institution], [Account Type], Balance: INR [AMOUNT] (CAD [EQUIVALENT]), Available since [DATE]
[Account 2]: ...
[Account 3]: ...

Source:
[FUNDS_SOURCE narrative — describe how funds accumulated]

The funds have been sustained in my accounts for [N] months. I confirm:
  • Funds are unencumbered (no liens, no pledges)
  • Funds are transferable to Canada
  • Funds are mine (or jointly with spouse where applicable)
  • Source documentation is attached as annexes

Annexes:
  • Annex A: Bank statements (6 months)
  • Annex B: FD certificates
  • Annex C: Source-of-funds documentation
  • Annex D: Currency conversion rate certificate

I declare the above is true and complete.

[CLIENT_NAME] · [DATE]"

§6 — TRANSFER TO CANADA POST-PR (40-60 words)

After PR landing:
  • Open Canadian bank account (Scotiabank StartRight, TD New to Canada, RBC Newcomer)
  • Wire transfer from Indian bank — best to use SBI Canada or ICICI Canada (lowest fees)
  • Currency conversion: shop rates between bank vs Wise / Remitly
  • Tax planning: Indian capital gains on remittance; Canadian tax-free for funds earned before becoming PR

End with: "DRAFT PROOF OF FUNDS NARRATIVE — for RCIC review. Verify settlement fund thresholds against canada.ca/en/immigration-refugees-citizenship/services/immigrate-canada/express-entry/documents/proof-funds.html — adjusted annually based on Statistics Canada LICO. Recent large deposits trigger heightened source-of-funds scrutiny; disclose proactively."