Sponsoring a loved one to come to Canada as a permanent resident is an exciting and meaningful process. In Canada, sponsoring someone comes with a range of financial responsibilities to ensure that the sponsored person can settle and integrate into Canadian society without relying on public assistance.  Therefore,  it’s important for sponsors to understand the financial obligations they are taking on. Below is some important information for sponsors to know.

Income Requirements for Sponsorship

One of the primary financial responsibilities of a sponsor is to meet the minimum income requirements set by Immigration, Refugees, and Citizenship Canada (IRCC). This requirement varies based on the size of your family, including the person you are sponsoring.

When sponsoring a spouse, dependent child, or other relatives, you must demonstrate that your income is sufficient to support your household and the sponsored person. These requirements are designed to ensure that the sponsored individual does not require social assistance or government welfare once they arrive in Canada.

For example, if you are sponsoring a spouse and two children, you will need to show proof of income that meets or exceeds the minimum necessary income for that household size. The exact income threshold is updated annually, so it’s essential to verify the current requirements before applying.

Financial Support Commitment (Undertaking)

In addition to meeting the income requirements, sponsors must sign an undertaking when applying to sponsor someone. This is a legal commitment to financially support the sponsored person for a specified period, even if your financial situation changes.

The length of the undertaking depends on the type of sponsorship:

• For a spouse or common-law partner, the sponsorship commitment lasts for three years from the date the permanent resident status is granted.
• For a dependent child, the commitment lasts for 10 years or until the child turns 25, whichever comes first.
• For parents or grandparents, the commitment is typically 20 years.

This means that during the undertaking period, if the sponsored individual requires government assistance, you are responsible for reimbursing the government for those costs. If your sponsored relative is unable to support themselves financially, you will be expected to step in to ensure they do not rely on public services.

Proof of Financial Capability

Before submitting a sponsorship application, sponsors need to provide documentation that proves they can meet the financial responsibilities. This includes:

• Tax returns: You’ll need to provide your Notice of Assessment (NOA) from the Canada Revenue Agency (CRA) for the last couple of years to show your financial stability.
• Employment records: Pay stubs or proof of income that demonstrate your current employment status and earning potential.
• Bank statements: A detailed account of your savings or financial assets may also be required, especially if you’re self-employed or have fluctuating income.

These documents are used to assess whether you can support the sponsored individual and meet your obligations under the sponsorship program.

Additional Costs for Sponsorship

Aside from meeting the minimum income requirements and the financial undertaking, there are additional costs to consider during the sponsorship process:

• Application fees: Sponsorship applications come with certain fees, such as processing fees for the sponsored person, as well as right-of-residence fees for permanent residency status.
• Medical exams and police certificates: The sponsored individual will need to undergo medical exams and provide police certificates, which may come with costs.
• Settlement costs: While not technically the sponsor’s responsibility, it’s wise to consider the potential costs of helping the sponsored person settle in Canada, such as housing, transportation, food, and other living expenses. These can be significant, especially during the initial period of adjustment.

What Happens if You Can’t Meet Financial Obligations?

Failing to meet the financial requirements or fulfill the sponsorship commitment could have serious consequences. If you are unable to financially support the sponsored person during the undertaking period, you could face legal actions, including the repayment of any government assistance the sponsored individual receives.

Additionally, if the sponsored person applies for social assistance, the Canadian government can collect these costs from the sponsor. In extreme cases, if you fail to fulfill your obligations, it could affect your eligibility to sponsor others in the future.

Financial Exemptions or Support

There are certain situations in which the financial requirements may be relaxed. For example:

• If you are sponsoring a spouse or partner and you both live in an area with a very high cost of living, there may be some flexibility.
• If you are sponsoring a dependent child who is still in school and living at home, your responsibility may be lessened due to their status as a student or dependent.

Sponsors can also explore community resources that may assist in settling newcomers to Canada, though this does not relieve them of their financial obligations.

To summarize, sponsoring a loved one to Canada is a special opportunity, but it comes with significant financial responsibilities. Sponsors need to be prepared to meet income requirements, sign an undertaking agreement, and provide financial support for an extended period. It’s essential to assess your own financial situation carefully before committing to sponsorship to ensure that you can meet the necessary obligations and avoid future complications. As the application process can be complex, assistance can be provided by consulting with a licensed immigration consultant and referencing the IRCC website below: https://www.canada.ca/en/immigration-refugees-citizenship/services/immigrate-canada/family-sponsorship.html