Family Sponsorship
Canada’s Sponsorship Undertaking for Parents and Grandparents: In-Depth Guide
Understanding the Sponsorship Undertaking
The sponsorship undertaking is a crucial component of the Parent and Grandparent Program (PGP) in Canada. It’s a legally binding promise made by sponsors to provide financial support for their sponsored relatives. This agreement ensures that newcomers to Canada have adequate support and don’t rely on social assistance programs.
Key Features of the Undertaking
Legal commitment to financially support sponsored relatives
Applies to all family members included in the application
Covers basic requirements such as food, shelter, clothing, and healthcare
Duration of 20 years from the date the sponsored relative becomes a permanent resident
Who Needs to Sign the Undertaking?
The primary sponsor must sign the undertaking. In some cases, a co-signer may also be required:
Primary Sponsor: The Canadian citizen or permanent resident initiating the sponsorship
Co-Signer (if applicable): Usually the sponsor’s spouse or common-law partner, who agrees to share the financial responsibility
It’s important to note that both the primary sponsor and co-signer (if any) must meet the eligibility requirements, including the minimum necessary income threshold.
Duration and Scope of the Undertaking
The sponsorship undertaking for parents and grandparents lasts for 20 years. This extended period reflects the potential long-term care needs of older relatives. During this time:
Sponsors are financially responsible for their sponsored relatives
The undertaking remains in effect even if the sponsor’s financial situation changes
Sponsored relatives are not eligible for social assistance unless all other options have been exhausted
What the Undertaking Covers
The sponsorship undertaking covers basic needs and healthcare costs, including:
Food and nutrition
Housing and utilities
Clothing and personal care items
Healthcare not covered by public health insurance
For a detailed breakdown of covered expenses, refer to the IRCC guide on financial support.
Financial Implications for Sponsors
Understanding the financial implications of the sponsorship undertaking is crucial:
Income Requirements: Sponsors must meet minimum income thresholds for the past three tax years
Ongoing Support: Be prepared to provide financial assistance throughout the 20-year period
Multiple Sponsorships: Income requirements increase with each additional person sponsored
Debt to the Crown: Failure to support sponsored relatives may result in debt to the government
Calculating Required Income
The minimum necessary income is based on the Low Income Cut-Off (LICO) plus 30%. Factors affecting the required income include:
Family size of the sponsor
Number of people being sponsored
Location of residence in Canada
Use the IRCC’s income table to determine the specific amount required for your situation.
Consequences of Defaulting on the Undertaking
Failing to meet the obligations of the sponsorship undertaking can have serious consequences:
Debt to the Government: Sponsors may be required to repay any social assistance received by sponsored relatives
Legal Action: The government may take legal action to recover funds
Impact on Future Sponsorships: Defaulting may affect eligibility for future sponsorship applications
Credit Rating: Unpaid debts can negatively impact credit scores
Circumstances That Don’t End the Undertaking
It’s crucial to understand that certain life changes do not terminate the sponsorship undertaking:
Divorce or separation from a spouse or partner
Financial difficulties or bankruptcy of the sponsor
The sponsored relative becoming a Canadian citizen
The sponsor or sponsored relative moving to another province
Death of the sponsor (the obligation transfers to the estate)
Rights and Responsibilities of Sponsored Relatives
Sponsored parents and grandparents also have specific rights and responsibilities:
Right to Work: Sponsored relatives can seek employment in Canada
Access to Healthcare: They are eligible for public healthcare coverage
Education: They can enroll in educational programs
Responsibility to Strive for Self-Sufficiency: While not required, sponsored relatives are encouraged to work towards financial independence
Preparing for the Long-Term Commitment
To successfully fulfill the sponsorship undertaking, consider these strategies:
Financial Planning: Consult with a financial advisor to create a long-term budget
Emergency Fund: Set aside savings for unexpected expenses
Insurance: Consider life and disability insurance to protect against unforeseen circumstances
Regular Check-ins: Maintain open communication with sponsored relatives about their needs
Community Resources: Familiarize yourself with settlement services and community support programs
Exceptions and Special Circumstances
While rare, there are some situations where the sponsorship undertaking may be terminated early:
Sponsored relative leaves Canada permanently
Sponsored relative becomes inadmissible and is ordered to leave Canada
Sponsored relative dies
For more information on exceptions, consult the IRCC’s operational instructions and guidelines.
The sponsorship undertaking for parents and grandparents is a significant, long-term commitment that requires careful consideration and planning. By fully understanding the obligations, financial implications, and potential challenges, sponsors can make informed decisions and successfully support their loved ones in Canada.
Remember that while the undertaking presents challenges, it also offers the invaluable opportunity to reunite families and enrich Canadian society with the wisdom and experience of older generations.
