POF : 6 months average balance requirement

[vsgautam]

Dear forum members,

My apologies for starting a new thread regarding POF, please be assured that I have gone through a couple but unable to find exactly what I am looking for.

I am currently standing at 467 points and hope to land an ITA in the upcoming draw. Up till now, I had decided show to POF after taking a gift from my father once I landed the ITA. But for the last couple of days I have come across application rejections on this forum due to POF for various reasons. My queries are :

1. Does the 6 month average balance requirement non negotiable even in the case of receiving a gift (as I would not fulfill this if I take the money now)?
2. If the answer to above question is yes, does it make sense to decline ITA and wait for 6 months condition to be fulfilled before applying?
3. Can anyone share the content/format of the LOE which states what all is absolutely required to tell CIC regarding the gift received?

Thanks in advance.

VSG

 

[vsgautam]

Anybody? please share...

Also, I came across the following on CIC website regarding POF post 1 Jan 2015 (http://www.cic.gc.ca/english/resources/tools/perm/express/intake-complete.asp) . It specifically mentions to list all loans details too whereas in this forum people have suggested otherwise. Do we need to give proof for net amount i.e. Assets less Liablities (liquid of course) equivalent to minimum funds required?

Purpose

To confirm whether the applicant meets the low income cut-off (LICO), as assessed by amount of money they hold compared to the number of people in their family

Document requirements

The applicant should provide official letter(s) from financial institution(s) which list all current bank and investment accounts, as well as outstanding debts such as credit cards and loans.
The letter(s) must be printed on the letterhead of the financial institution and must include applicant’s name, the contact information of the financial institution (address, telephone number and e-mail address), the account numbers, dates of when each account was opened and the current balance of each account as well as the average balance in the past six months.
Other documents may also be requested, as necessary.

Individuals who must submit this documentation

The principal applicant

 

[Asivad Anac]

It makese sense to provide details of loans only if you can somehow showcase the corresponding asset side as well. However, CIC explicitly does not let you showcase assets other than bank funds. If you still showcase your debts alone, you are likely to end in a net negative situation.

The requirement from CIC is simple. PA must have unfettered access to the required funds and they must be unencumbered. Provide sufficient evidence(s) for that to satisfactorily convince the officer.

 

[vsgautam]

Hi Asivad,

Thank you once again for your response.

I am asking this because I currently have a car loan, so does my POF should be = Total Funds - Car Loan = Minimum funds required ?

Also ,please share your thoughts on point # 1 i.e. min 6 months avg balance as I am not currently fulfilling this criteria!

Thanks in advance.

VSG

 

[Asivad Anac]

Hi Asivad,

Thank you once again for your response.

I am asking this because I currently have a car loan, so does my POF should be = Total Funds - Car Loan = Minimum funds required ?

Also ,please share your thoughts on point # 1 i.e. min 6 months avg balance as I am not currently fulfilling this criteria!

Thanks in advance.

VSG

Not at all. That is not how POF works. If you really want to include the car loan, include the current sale price of your car as well in the equation to make it more meaningful. However, CIC doesn't allow you to do that.

So leave the car loan component out of it altogether. Just have required funds in your account and provide bank certificate/letter in the required format. It is not necessary to have had the funds in the account for 6 months but it is mandatory to prove to CIC that the funds aren't encumbered.

 

[vsgautam]

How do we explain that the funds are not encumbered? I will be showing cash in my bank account and if I do not show any outstanding loans then it mean that nobody else has claims to that cash. Also for LOE, what all points should be covered as in Date of transfer, amount, from account ? anything I am missing?

VSG

 

[Asivad Anac]

How do we explain that the funds are not encumbered? I will be showing cash in my bank account and if I do not show any outstanding loans then it mean that nobody else has claims to that cash. Also for LOE, what all points should be covered as in Date of transfer, amount, from account ? anything I am missing?

VSG

Nobody else having claims to the money is a good start. Remember to explain every single unreasonably large credit transaction into your account over the past 6 months (or any unreasonably large difference between 6 months average balance and present account balance).

 

[affan_123]

How do we explain that the funds are not encumbered? I will be showing cash in my bank account and if I do not show any outstanding loans then it mean that nobody else has claims to that cash. Also for LOE, what all points should be covered as in Date of transfer, amount, from account ? anything I am missing?

VSG

You dont need to add information which is never a requirement by cic. There is no need to mention amount transferred from one account to another. Cic never asks this, try to keep it extremely simple and logical. Cic only need to know the money you carry with yourself is yours or not and do they meet the minimum threshold. Your ending balance will justify the minimum threshold. Your average six months balance will justy if any unrealistic transaction took place in terms of payable or receivable. Besides, LOE is not mandatory to attach if your account balance does not hav any insignificant decrease/increase. My suggestion is if there is any significant increase or decrease in any particular month then explain that in a letter how and why it increased or decreased. Just reconcile your six month balance in a letter (only if there is significant increase/decrease) just reconcile it

Hope this answers your question

 

[vsgautam]

You dont need to add information which is never a requirement by cic. There is no need to mention amount transferred from one account to another. Cic never asks this, try to keep it extremely simple and logical. Cic only need to know the money you carry with yourself is yours or not and do they meet the minimum threshold. Your ending balance will justify the minimum threshold. Your average six months balance will justy if any unrealistic transaction took place in terms of payable or receivable. Besides, LOE is not mandatory to attach if your account balance does not hav any insignificant decrease/increase. My suggestion is if there is any significant increase or decrease in any particular month then explain that in a letter how and why it increased or decreased. Just reconcile your six month balance in a letter (only if there is significant increase/decrease) just reconcile it

Hope this answers your question

Thank you affan, yes I will have to provide LOE as 100% of my funds are coming from my father which will definitely be a sudden spike in my account, I am just fearing that the 6 months avg balance requirement will not be meant but as Asivad suggests, it is not mandatory!

VSG

 

[blackbeast]

hey guys, can provident fund account (amount) be considered for Proof of funds? please share your thoughts. thanks!!

 

[Asivad Anac]

hey guys, can provident fund account (amount) be considered for Proof of funds? please share your thoughts. thanks!!

Only if those funds are present in your bank account.

 

[vipulgoyal88]

blackbest, as far as i know, provident fund can be included in POF

 

[Asivad Anac]

blackbest, as far as i know, provident fund can be included in POF

Do provide a CIC link to support that assertion.

 

[affan_123]

blackbest, as far as i know, provident fund can be included in POF

Please do not mislead anyone. Provident fund cannot be considered as a proof of fund. Cic only consider account balance on cash basis not on accrual basis. Pf is an amount which belongs to you but you dont know the time and amount of realisation. Do you know it? Can you confirm its realisation? Can you liquidate it and transfer it in your account while working for a company? You need to resign to realize your pf. And if during job you request them to transfer it in your account then you need to justify and you need to follow a long procedure. Some companies may consider as a loan

 

[blackbeast]

thanks for the information guys. i found the below text in CIC website -

" These funds could be in the form of:

cash
documents that show property or capital payable to you (such as stocks, bonds, debentures, treasury bills, etc.) or
documents that guarantee payment of a set amount of money, which are payable to you (such as bankers’ drafts, cheques, travellers’ cheques or money orders) "

can PF be considered as guarantee payment of a set of amount of money payable to us? Also, can we use Fixed deposit money as POF?

thanks!!