Proof of funds - car loan...

[Belgiancouple1986]

Hi,

I am currently facing some problems with the proof of funds that will be required. All our money is invested in our own property house. When we (hopefully) get our PR we will sell our house but you need to show proof of funds before (after you get ITA). I already understood that you need to have this in cash on your bank account (6 months before they ask this proof) and read about possibilities for gifts, ... a property does not count unless you can prove it is already sold. Which will not be the case.

Since I think it would be quite stupid to miss our chance because of this (temporarily) lack of funds, I came up with the following 'solution':

I sell my car which gives me the cash I need for my proof of funds. I pay the current car loan in 1 time and still have enough cash at the end to meet the requirements for proof of funds. So this loan will be ended + 1 have the necessary cash on my account. I then take on a loan to buy new car. This way by the time we will get ITA the money will already be on our bank account long enough, but we will have a new car loan running then.

Could this be a solution?

I know you can not lend the money but this loan is on the car. And if we ask our bank to provide us with proof of our net worth (house - loans) we will have more than enough to meet the requirements, just not in time...

 

[Asivad Anac]

You can do this.

The requirement is NOT about having the money for 6 months. The requirement is about NOT showcasing borrowed funds as POF. One way of doing that is by showcasing money in your bank for at least 6 months. In that case, IRCC would accept that those funds belong exclusively to you.

You can sell your car even after getting the ITA and use the proceeds as POF provided you can claim exclusive ownership of the car and provide a bank trail of the proceeds.

Having a car loan or any other kind of mortgage has no relevance to POF. IRCC doesn't require your 'net worth'. All they're looking for is for you to have exclusive and unfettered access to the required funds.

 

[bamshy]

cic.gc.ca/english/resources/tools/perm/express/intake-complete.asp

Proof of funds
Purpose

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

Document requirements

The applicant should provide an official letter(s) from one or more financial institutions that lists all current bank and investment accounts as well as outstanding debts, such as credit card debts and loans.
o The letter(s) must be printed on the letterhead of the financial institution and must include the applicant’s name, the contact information of the financial institution (address, telephone number and email address), the account numbers, the date each account was opened and the current balance of each account as well as the average balance for the past six months.
Other documents may also be requested, as necessary.
Individuals who must submit this documentation

The principal applicant

 

[Asivad Anac]

cic.gc.ca/english/resources/tools/perm/express/intake-complete.asp

Proof of funds
Purpose

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

Document requirements

The applicant should provide an official letter(s) from one or more financial institutions that lists all current bank and investment accounts as well as outstanding debts, such as credit card debts and loans.
o The letter(s) must be printed on the letterhead of the financial institution and must include the applicant’s name, the contact information of the financial institution (address, telephone number and email address), the account numbers, the date each account was opened and the current balance of each account as well as the average balance for the past six months.
Other documents may also be requested, as necessary.
Individuals who must submit this documentation

The principal applicant

Nice of you to take the time to highlight that part.

IRCC doesn't care about retail loans that you might have, they certainly don't care about your net worth. That highlighted part is meant as a deterrent for those people who might be considering credit card debts or retail loans as a potential source for their POF.

 

[bamshy]

Thanks.

My recent GCMS notes shows I may not meet proof of funds requirements.

I showed a statement of account of CAD13,000 as an individual and declared a car loan balance of CAD23,000.

I am still wondering why the case officer has issues with proof of funds.

 

[Asivad Anac]

Thanks.

My recent GCMS notes shows I may not meet proof of funds requirements.

I showed a statement of account of CAD13,000 as an individual and declared a car loan balance of CAD23,000.

I am still wondering why the case officer has issues with proof of funds.

I don't know that either. Probably because you submitted information that wasn't relevant to your application. That car loan makes no difference to IRCC because it is technically backed by an asset (the car) which hasn't been accounted for in your funds calculations. So it's grossly unfair to you if that liability alone is held against you.

 

[akhil5293]

You can do this.

The requirement is NOT about having the money for 6 months. The requirement is about NOT showcasing borrowed funds as POF. One way of doing that is by showcasing money in your bank for at least 6 months. In that case, IRCC would accept that those funds belong exclusively to you.

You can sell your car even after getting the ITA and use the proceeds as POF provided you can claim exclusive ownership of the car and provide a bank trail of the proceeds.

Having a car loan or any other kind of mortgage has no relevance to POF. IRCC doesn't require your 'net worth'. All they're looking for is for you to have exclusive and unfettered access to the required funds.

Hi I have funds in my bank account basically in the form of saving. But I also have few credit cards which I use and have balance on!! If I provide a bank letter with my current balance and last 6 month statement is it ok for me or do I have to mention the credit card balance as well ??

 

[vinitmenon]

Hi,

I am currently facing some problems with the proof of funds that will be required. All our money is invested in our own property house. When we (hopefully) get our PR we will sell our house but you need to show proof of funds before (after you get ITA). I already understood that you need to have this in cash on your bank account (6 months before they ask this proof) and read about possibilities for gifts, ... a property does not count unless you can prove it is already sold. Which will not be the case.

Since I think it would be quite stupid to miss our chance because of this (temporarily) lack of funds, I came up with the following 'solution':

I sell my car which gives me the cash I need for my proof of funds. I pay the current car loan in 1 time and still have enough cash at the end to meet the requirements for proof of funds. So this loan will be ended + 1 have the necessary cash on my account. I then take on a loan to buy new car. This way by the time we will get ITA the money will already be on our bank account long enough, but we will have a new car loan running then.

Could this be a solution?

I know you can not lend the money but this loan is on the car. And if we ask our bank to provide us with proof of our net worth (house - loans) we will have more than enough to meet the requirements, just not in time...

if u r cec then you dont need to show any fund. i am not sure what category ur ITA falls into.

 

[akhil5293]

I am not cec buddy!!

 

[swish003]

Thanks.

My recent GCMS notes shows I may not meet proof of funds requirements.

I showed a statement of account of CAD13,000 as an individual and declared a car loan balance of CAD23,000.

I am still wondering why the case officer has issues with proof of funds.

so how did you get around it? Is it ok not to show car loan as proof of funds?

 

[Wolverine17]

Nice of you to take the time to highlight that part.

IRCC doesn't care about retail loans that you might have, they certainly don't care about your net worth. That highlighted part is meant as a deterrent for those people who might be considering credit card debts or retail loans as a potential source for their POF.

So in short just show the accounts that cover your pof regardless of other outstanding debts or loans,correct

 

[chikoo1985]

So in short just show the accounts that cover your pof regardless of other outstanding debts or loans,correct

Hello,
Did this workout? How did you show the car loan?

 

[Wolverine17]

Hello,
Did this workout? How did you show the car loan?

Car loan isnt an issue,you can sell the car anytime and pay the bank

 

[chikoo1985]

Car loan isnt an issue,you can sell the car anytime and pay the bank

Ok. Thanks.

 

[ver]

You can do this.

The requirement is NOT about having the money for 6 months. The requirement is about NOT showcasing borrowed funds as POF. One way of doing that is by showcasing money in your bank for at least 6 months. In that case, IRCC would accept that those funds belong exclusively to you.

You can sell your car even after getting the ITA and use the proceeds as POF provided you can claim exclusive ownership of the car and provide a bank trail of the proceeds.

Having a car loan or any other kind of mortgage has no relevance to POF. IRCC doesn't require your 'net worth'. All they're looking for is for you to have exclusive and unfettered access to the required funds.

Hi Asivad Anac,

You seem to be an expert on this topic. Please can you assist me.

In order to show $14000 in my account, my parents are gifting me $10000 and I will receive the further $4000 from the sale of my car.
For the gift, I know I have to get a deed of gift and a notarized letter.
However, what documents do I need to proof that I sold my car and that the money is mine's. Apart from the registration of the car, showing that the car was mine, and the bank statement to show that the funds was transferred into my account, what other information do I need? Should I get an affidavit from the local police from the buyer to say that he bought my car and do I need to show that the car has been transferred to the other person's name.

Thank you!

I appreciate your assistance