Overdraft Home Loan account (SBI Maxgain) as POF

[AjayKalra]

Hi All,

I got my ITA on 30th January. I am preparing the documents now. As I have a home loan ongoing, I generally tend to park all my savings into this account which works both as savings and a loan account. It helps me save my interest outgo. Since this saves me maximum rate of interest (9 %), I have refrained from making any FD etc. whatsoever. I can deposit and withdraw from this SBI Maxgain account as a usual savings acoount. THe current balance here (All of my savings) is much higher than the POF requirement.

I was wondering if such an account statement can be used as POF along with an LOE explaining the same. I don't want to take any risk whatsoever due to a misunderstanding as I readily have more than the required funds available with me. I could see multiple people have faced this issue earlier (SBI Maxgain account) on forums but none of the forums have had a conclusive answer on what was done and whether it worked.

If anyone here was successful with this situation, can you please guide me?

 

[TanuP]

Better to write an explanation letter and maybe attach an info flyer. Loans and loan account will be a liability and not an asset, so yes, you do run the risk.
Explain how the account works for sure. Other option would be to open another savings account and park your funds there until your application is approved.

 

[AjayKalra]

Better to write an explanation letter and maybe attach an info flyer. Loans and loan account will be a liability and not an asset, so yes, you do run the risk.
Explain how the account works for sure. Other option would be to open another savings account and park your funds there until your application is approved.

Thanks TanuP! I will do that -- Transfer to a Savings account, open an FD and show that as POF, but my only worry is that as they require 6 months statement or average balance, this transfer shall show a spike. So, once again I would have to show that Maxgain Home Loan account to prove the source of balance.

 

[TanuP]

Thanks TanuP! I will do that -- Transfer to a Savings account, open an FD and show that as POF, but my only worry is that as they require 6 months statement or average balance, this transfer shall show a spike. So, once again I would have to show that Maxgain Home Loan account to prove the source of balance.

Yes. You should. Write a nice long explanation letter, use bullet points, use a table whatever but explain dates, large transactions whether cheque or cash. Be open and they will appreciate it. My bank refused to give me a letter so i transferred my funds to another account. Attached documents for both and also included screen grabs of the actual transaction (online one) to show the reference number.
Explain the issues and explain the solution as well. Good luck!

 

[AjayKalra]

Yes. You should. Write a nice long explanation letter, use bullet points, use a table whatever but explain dates, large transactions whether cheque or cash. Be open and they will appreciate it. My bank refused to give me a letter so i transferred my funds to another account. Attached documents for both and also included screen grabs of the actual transaction (online one) to show the reference number.
Explain the issues and explain the solution as well. Good luck!

Thanks TanuP! Hopefully it will work.

 

[gmgauravmehta]

Hi All,

I got my ITA on 30th January. I am preparing the documents now. As I have a home loan ongoing, I generally tend to park all my savings into this account which works both as savings and a loan account. It helps me save my interest outgo. Since this saves me maximum rate of interest (9 %), I have refrained from making any FD etc. whatsoever. I can deposit and withdraw from this SBI Maxgain account as a usual savings acoount. THe current balance here (All of my savings) is much higher than the POF requirement.

I was wondering if such an account statement can be used as POF along with an LOE explaining the same. I don't want to take any risk whatsoever due to a misunderstanding as I readily have more than the required funds available with me. I could see multiple people have faced this issue earlier (SBI Maxgain account) on forums but none of the forums have had a conclusive answer on what was done and whether it worked.

If anyone here was successful with this situation, can you please guide me?

Hi Ajay,
The idea of POF is to have sufficient funds to support your application as per min funds requirements table. Now, the type of account doesnt really matter. What CIC will evaluate is this:
- If you provide 6 months bank statement, they can see the loan repayments EMI going out every month, which means
- You need to disclose the loan amount with the total outstanding on a liability letter from the bank. In addition,
- Home loans are nothing to worry about since these are secured mortgages
- You can explain these points well in your LOE
- You should have these funds available at all times for the last 6 months, liquid and should be your own money (from salary or savings but not from loan)

Ideal is to have a separate account, but in your case, it is too late. Hope the above helps. Thanks

 

[AjayKalra]

Hi Ajay,
The idea of POF is to have sufficient funds to support your application as per min funds requirements table. Now, the type of account doesnt really matter. What CIC will evaluate is this:
- If you provide 6 months bank statement, they can see the loan repayments EMI going out every month, which means
- You need to disclose the loan amount with the total outstanding on a liability letter from the bank. In addition,
- Home loans are nothing to worry about since these are secured mortgages
- You can explain these points well in your LOE
- You should have these funds available at all times for the last 6 months, liquid and should be your own money (from salary or savings but not from loan)

Ideal is to have a separate account, but in your case, it is too late. Hope the above helps. Thanks

Hi gmgauravmehta,

Thanks for the insight and I understand, but right now I have two options. Either I keep the loan account statement and provide it as it is : Total balance would be negative but book balance would be my savings parked in that account which has accumulated based on systematic transfers from my salary account over time and is 3-4 times the POF amount required. Or, I transfer the requisite amount to my salary account, make an FD of it and show this along with source of funds and transfer history to support it. Which option do you think is better since I am trying to avoid any risk.

 

[gmgauravmehta]

Hi gmgauravmehta,

Thanks for the insight and I understand, but right now I have two options. Either I keep the loan account statement and provide it as it is : Total balance would be negative but book balance would be my savings parked in that account which has accumulated based on systematic transfers from my salary account over time and is 3-4 times the POF amount required. Or, I transfer the requisite amount to my salary account, make an FD of it and show this along with source of funds and transfer history to support it. Which option do you think is better since I am trying to avoid any risk.

Hi Ajay,

You can actually move the requisite funds to a new separate account within the same bank - say SBI. which will support you with withdrawal from current & deposit to new savings account of the same bank. Provide a bank stamped/signed statements of both accounts - signed by branch manager & stamped as well. Usually with the same bank, you will have same CIF (customer) no. which is unique and doesnt change with irrespective of how many accounts you hold, that will support you. And keep the POF min or a little extra in that new account and then can explain this all in detail in your LOE stating your scenario and purpose of opening a new account. Hope this helps. Thanks

 

[LetsReachCanada]

Hi All,

I got my ITA on 30th January. I am preparing the documents now. As I have a home loan ongoing, I generally tend to park all my savings into this account which works both as savings and a loan account. It helps me save my interest outgo. Since this saves me maximum rate of interest (9 %), I have refrained from making any FD etc. whatsoever. I can deposit and withdraw from this SBI Maxgain account as a usual savings acoount. THe current balance here (All of my savings) is much higher than the POF requirement.

I was wondering if such an account statement can be used as POF along with an LOE explaining the same. I don't want to take any risk whatsoever due to a misunderstanding as I readily have more than the required funds available with me. I could see multiple people have faced this issue earlier (SBI Maxgain account) on forums but none of the forums have had a conclusive answer on what was done and whether it worked.

If anyone here was successful with this situation, can you please guide me?

Hi, I too have a Maxgain O/D account. I got my ITA on 4th April 2019. My wife is the primary applicant. We have no kids. Complicating the issue is the fact that my Maxgain account was opened last week of February 2019(it is a take-over loan - loan was previously held by LICHFL). In my O/D account, I have about half the funds (needed for POF), and my wife has half the funds(needed for POF) in her accounts.
Did you get PPR yet? Secondly, do you(or anyone else here) know what is the best way to go about in a situiation like this? Should I move the funds to my wife's account, and let her make an FD of the entire amount needed for POF? Do I need to write a LOE and show bank statements for the last 6 months. Or should I decline the ITA?

 

[Rishi2843]

Hi, I too have a Maxgain O/D account. I got my ITA on 4th April 2019. My wife is the primary applicant. We have no kids. Complicating the issue is the fact that my Maxgain account was opened last week of February 2019(it is a take-over loan - loan was previously held by LICHFL). In my O/D account, I have about half the funds (needed for POF), and my wife has half the funds(needed for POF) in her accounts.
Did you get PPR yet? Secondly, do you(or anyone else here) know what is the best way to go about in a situiation like this? Should I move the funds to my wife's account, and let her make an FD of the entire amount needed for POF? Do I need to write a LOE and show bank statements for the last 6 months. Or should I decline the ITA?

Did you get your PR? I am also having the same kind off issue.

 

[LetsReachCanada]

Did you get your PR? I am also having the same kind off issue.

Hey, I got CoPR yesterday, more details here: https://www.canadavisa.com/canada-immigration-discussion-board/threads/got-my-copr-ask-loans-rentals-maxgain-pf-reference-letters-loe-more.665150/