Proof of funds

[milk29]

Hi guys, I have several questions regarding the proof of funds:
- I don't have enough savings in the account under my name, but my parents will be able to provide the funds for me. If they do transfer the funds to my account, is the gift deed necessary? Where could I go to notarize it in China?
- I also learned that the money should be sat in your account for 6 months before you submit all the documents, but I haven't asked my parents to transfer the money yet. If I freeze the money for 6 months onwards, would it help?
- On the requirement page it says "list outstanding debts such as credit card debts and loans", how should I do it? I only have myself in the family, so the fund needed is 12K; should the net worth of my assets, including the debts and the funds transferred from my parents be over 12K?

Thanks in advance!!! I almost have a panic attack when I saw the requirement...

 

[crescent_jam]

Hi guys, I have several questions regarding the proof of funds:
- I don't have enough savings in the account under my name, but my parents will be able to provide the funds for me. If they do transfer the funds to my account, is the gift deed necessary? Where could I go to notarize it in China?
- I also learned that the money should be sat in your account for 6 months before you submit all the documents, but I haven't asked my parents to transfer the money yet. If I freeze the money for 6 months onwards, would it help?
- On the requirement page it says "list outstanding debts such as credit card debts and loans", how should I do it? I only have myself in the family, so the fund needed is 12K; should the net worth of my assets, including the debts and the funds transferred from my parents be over 12K?

Thanks in advance!!! I almost have a panic attack when I saw the requirement...

Hi milk29,

- Your parents can transfer the funds to you, but you will need a gift deed to show where the money came from and to prove that your parents aren't expecting the money back (i.e. it's not a loan). I'm not sure about notarizing in China. Hopefully someone from China can answer that question for you.

- As I understand it, the money doesn't HAVE to be in your account for 6 months before you submit documents. The '6-month' rule is just to allow IRCC to go back 6 months in your history to see if you have any large, suspicious deposits that could possibly be a loan that you're trying to 'pass off' as unencumbered funds to meet the settlement fund threshold (this is why you need the aforementioned gift deed, to show that the money from your parents isn't a loan or anything suspicious and is actually YOUR money to use as you see fit). As long as the money is yours and unencumbered (and this is proven), you can deposit the money, even a week before you submit your documents, and you'd be fine.

- The conventional wisdom on the forum appears to be that outstanding debts are only an issue if they encumber the settlement funds you're showing (e.g. if any of the funds you're showing as proof were used as collateral against any of the loans). You're not really showing 'net worth' so much as you're showing "I have CAD$12,300 that I can use for settlement purposes and doesn't have to be used for anything else". That being said, you never know which immigration officer will be reviewing your file and if they will consider your debts to be a problem, so many persons try to clear their debts before submission, or try to have settlement funds in excess of the threshold + combined debts, if possible. (*You also want to have more than CAD$12,300 (if your money is in a currency other than Canadian dollars) to protect against fluctuating exchange rates).

For me, my bank letter also included the (small) amount of my outstanding motor vehicle loan, but I couldn't get a letter for my outstanding student loan balance as the loan isn't drawn on any bank or financial institution (it was issued directly by the school). So, I did a Letter of Explanation where I mention the outstanding balance on both loans (and provide a print out e-statement of the student loan balance as additional evidence, since I couldn't get a letter from the school) and then pointed out that the total outstanding loan amounts together, when taken from my claimed settlement funds, still doesn't bring me below the settlement fund threshold. I also outlined my plans to pay off both loans in full (to be done by end of the year) to show that the settlement funds I claimed won't be used at all towards paying down the loans. And I also affirmed in that letter that I am not carrying any credit card balances. I have multiple cards, but none of my banks were willing to mention the credit cards in my letters, especially since I don't carry balances on any of them. That way, if my file is checked by one of the 'finnicky' Immigration Officers, at least I've provided clarification on my financial profile that should hopefully ease any concerns they may have.

 

[milk29]

th

Hi milk29,

- Your parents can transfer the funds to you, but you will need a gift deed to show where the money came from and to prove that your parents aren't expecting the money back (i.e. it's not a loan). I'm not sure about notarizing in China. Hopefully someone from China can answer that question for you.

- As I understand it, the money doesn't HAVE to be in your account for 6 months before you submit documents. The '6-month' rule is just to allow IRCC to go back 6 months in your history to see if you have any large, suspicious deposits that could possibly be a loan that you're trying to 'pass off' as unencumbered funds to meet the settlement fund threshold (this is why you need the aforementioned gift deed, to show that the money from your parents isn't a loan or anything suspicious and is actually YOUR money to use as you see fit). As long as the money is yours and unencumbered (and this is proven), you can deposit the money, even a week before you submit your documents, and you'd be fine.

- The conventional wisdom on the forum appears to be that outstanding debts are only an issue if they encumber the settlement funds you're showing (e.g. if any of the funds you're showing as proof were used as collateral against any of the loans). You're not really showing 'net worth' so much as you're showing "I have CAD$12,300 that I can use for settlement purposes and doesn't have to be used for anything else". That being said, you never know which immigration officer will be reviewing your file and if they will consider your debts to be a problem, so many persons try to clear their debts before submission, or try to have settlement funds in excess of the threshold + combined debts, if possible. (*You also want to have more than CAD$12,300 (if your money is in a currency other than Canadian dollars) to protect against fluctuating exchange rates).

For me, my bank letter also included the (small) amount of my outstanding motor vehicle loan, but I couldn't get a letter for my outstanding student loan balance as the loan isn't drawn on any bank or financial institution (it was issued directly by the school). So, I did a Letter of Explanation where I mention the outstanding balance on both loans (and provide a print out e-statement of the student loan balance as additional evidence, since I couldn't get a letter from the school) and then pointed out that the total outstanding loan amounts together, when taken from my claimed settlement funds, still doesn't bring me below the settlement fund threshold. I also affirmed in that letter that I am not carrying any credit card balances. I have multiple cards, but none of my banks were willing to mention the credit cards in my letters, especially since I don't carry balances on any of them. That way, if my file is checked by one of the 'finnicky' Immigration Officers, at least I've provided clarification on my financial profile that should hopefully ease any concerns they may have.

This is really really helpful and clear! Thank you so much! And good luck with your application!!!

 

[crescent_jam]

th


This is really really helpful and clear! Thank you so much! And good luck with your application!!!

Thanks so much! Good luck to you as well!!!

 

[milk29]

Hi I have another question: I went to the notarization office but it seems like notarization of gift deed for cash is not available in China anymore... I read on Chinese forum that you can just freeze the money in your bank account, and let the bank issue a statement that the money won't be transferred for at least 6 months. Just want to varify whether this is ok... Thanks!!!