POF - Current Vs Avg 6M Balance

[seemefree]

Hello,
I just want to clear some specific details regarding my POF documentation.
For ease, lets assume X = settlement funds required for 2 people ($15,312).

The POF letter is printed on the letterhead of the bank, includes my name, contact information of the bank, the account number, the date account was opened, current balance and average balance for the past six months (as required by CIC). Furthermore, it mentions I have no outstanding debt in any form (i.e. credit card, loans etc.) as well.

On the letter : Current balance = 4X, Average 6 months balance = X

The current balance is 4 times higher than the average 6 month balance. That said, the average 6 month balance itself satisfies the minimum settlement fund requirement. In this case, would I still need to justify the difference between current and average balance and show proof of outgoing transactions etc. (to indicate outgoing funds etc.?)

What would be a full proof, confusion free document set in this case to prevent any additional document requests/checks in the future, to save on processing time?

Thank you very much for the help!

 

[DelPiero07]

No justification needed.

 

[seemefree]

No justification needed.

Thanks a lot for that! Just to be sure - The average balance on the letter I have is just 1 entry which says the average over six months, not 6 different closing balance entries (e.g. M1, M2 and so on).
So it could have been 0 at the end of 1 month, 2X at the end of another etc. but thats not clear from the letter I have - Thats where my concern arose. The significant difference between the current balance and the average six month balance definitely indicates spikes between months (I received 1 transfer in from my father, that was then transferred out into Mutual Funds and an FD under my name. In the following few months the balance was around 0. Then, I received the 2nd transfer in from my father which remains as the current balance now).

These spikes are not taken into consideration if the current and average 6 month balances are over the required min settlement funds?
Are these spikes only taken into consideration if the average 6 month balance is lower than the minimum required?

Sorry about the details, just want to make sure I wont be requested for additional proof of funds source or any other additional documents.

Thanks in advance!

 

[seemefree]

@DelPiero07 Could you please help with the above? Thank you in advance!

 

[infinix]

@DelPiero07 Could you please help with the above? Thank you in advance!

Let me see if I can help based on what I submitted.
I got a letter from the bank stating the following:
1. Name on account
2. Type of account:
3. Status of account
4. Current balance.
Then the bank now stated the average balances for 6months:
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6

I think it will make more sense to show the average balances for 6 months than having a single balance for the whole 6 months.
That's my opinion though.
Hope this helps.

 

[seemefree]

Let me see if I can help based on what I submitted.
I got a letter from the bank stating the following:
1. Name on account
2. Type of account:
3. Status of account
4. Current balance.
Then the bank now stated the average balances for 6months:
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6

I think it will make more sense to show the average balances for 6 months than having a single balance for the whole 6 months.
That's my opinion though.
Hope this helps.

Thanks a lot for your feedback @infinix ! If I go ahead and request the bank to explicitly state Month 1 to Month 6's balance, like I mentioned above - some months would show 0 and some months would show 20,000$ for example. In this case, I would definitely prove the spikes right?

Or did you have major spikes in between monthly closing balances as well? if so, did you show any source of funds coming in or reasons for going out?

Looking forward to your feedback! Thank you!

 

[infinix]

Thanks a lot for your feedback @infinix ! If I go ahead and request the bank to explicitly state Month 1 to Month 6's balance, like I mentioned above - some months would show 0 and some months would show 20,000$ for example. In this case, I would definitely prove the spikes right?

Or did you have major spike in between monthly closing balances as well? if so, did you show any source of funds coming in or reasons for going out?

Looking forward to your feedback! Thank you!

Some of the months showed spikes in the balances against the previous months. You will need to show the source of funds.
I got a gift deed to explain the spikes because I got a gift from my brother. You have to prove the source of the funds

 

[sysadmin141]

Thanks a lot for your feedback @infinix ! If I go ahead and request the bank to explicitly state Month 1 to Month 6's balance, like I mentioned above - some months would show 0 and some months would show 20,000$ for example. In this case, I would definitely prove the spikes right?

Or did you have major spikes in between monthly closing balances as well? if so, did you show any source of funds coming in or reasons for going out?

Looking forward to your feedback! Thank you!

Hi Seemefree, how did you resolve eventually? I'm facing same dilema right now. Please assist.

 

[Abhijeet19]

Let me see if I can help based on what I submitted.
I got a letter from the bank stating the following:
1. Name on account
2. Type of account:
3. Status of account
4. Current balance.
Then the bank now stated the average balances for 6months:
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6

I think it will make more sense to show the average balances for 6 months than having a single balance for the whole 6 months.
That's my opinion though.
Hope this helps.

Hi, how should i calculate average balance for 6 months?

 

[infinix]

Hi, how should i calculate average balance for 6 months?

sorry, I am just seeing this today !!!!!!!!!!!
my bank added my account balances for the six months and divided the total by six to get the average balance.

the balance for each month was stated on the letter; month1 to 6 and the calculated average balance.

i hope this else !