Express Entry Proof of Funds. What is Low-Income Cutoff (LICO) in Canada?
Proof of Funds:
You must show that you have enough money to support yourself and your family after you get to Canada unless you are working in Canada under a valid work permit. You can’t borrow this money from another person. You must be able to use this money to pay the costs of living for your family (even if they are not coming with you). You will need to submit proof of funds in the form of bank statements of fixed deposits at the time of submitting your application. For certain programs, if you have a valid job offer you may not need to show proof of funds. For most Canadian immigration programs, LICO is used to decide on how much proof of funds you must show.
Low-income cut off (LICO):
LICO is a standardized measure of minimum income required for you to qualify for certain Canadian immigration programs. For certain programs, LICO is used on a 6-month basis, and for certain others, it is used on a 12-month basis. For instance, LICO is used to calculate your eligibility to sponsor your parents or grandparents.
Program-wise LICO requirements:
- Atlantic Immigration Program: Proof of funds must exceed 1.5-month LICO
- Startup Visa Program: Proof of funds must exceed 6-month LICO
- Parent and Grandparent Sponsorship: Income must exceed 30% + 12-month LICO over a 3 tax year period before application
|Number of Family Members||Minimum Income Required (2020) over a 12-month period||Minimum Income Required (2020) over a 6-month period|
Minimum Income Required (2020) over a 3-month period
$8,575 (7 or More)
More than 7, for each add
Note: In sponsorship cases, the size of the family includes the sponsor, the family members in Canada, and the sponsored person(s).
May 25th, 2020