FSW - Proof of Funds - how would a car loan be?

[duplex]

Hi all,

I have almost got my materials ready for the FSW application (I am currently in Canada), one last thing is the fund requirements. To be clear, I have

1) Canadian bank chequing account: CA$16,000
2) Canadian bank US account: US$3,500
3) U.S. bank account: US$5,000

and

4) A new car purchased 2-3 months ago (should have a market value of $16,000 - $18,000 at this time)
5) A car loan with outstanding of $21,000 as of this moment.

When I fill up the application form for this part, what should I do according to my condition?

Shall I put my car as assets and my loan as liabilities? If that is the case, how would I provide the assessment of its value (loan amount can be supported by monthly loan statement)?

And in this case, will the c) settlement funds be ($16,000 + $3,500 + $5,000) + $17,000 - $21,000 = $20,500, assuming US$ and CA$ are on par?

Please share your experiences and knowledge..... thanks a lot.

 

[karankohli]

They are asking for liquid assets. Your car has no value as it it is not liquid. So basically it would be liquid assets - liabilities. Try to get a balance sheet made certfied by a chartered accountant.

 

[paopao]

Canadian bank checking account (cash is an asset) = liquid assets.
Canadian bank US account (cash is an asset) = liquid assets.
US Bank Account (cash is an asset) = liquid assets.
Car (a Car is an asset) = non liquid assets.
Car (a Car loan is a liability) = long term liability.
This is a rough panorama.

I believe the spirit of the "proof of funds" requirement from the cic is quite simple: Since they do not grant financial support to newcomers, you need to bring enough money to suffice your most basic needs, house/apartment (rent), food, clothes, transportation etc. (as stated on the guide 7000). If by the time of your application the “car” has not been sold, it means you do not pretend to use its “value” as part of your endeavor, therefore, you cannot count it as a liquid asset (they are looking after your real liquid assets after all liabilities). The car loan is a long term commitment on the liability side.

In the forms you are asked to: “Indicate the total amount of assets, in Canadian dollars. The total amount of liabilities, in Canadian dollars, (and fatherless) the total amount of unencumbered transferable and available funds that you have in Canadian dollars. -> Provide evidence.".
Reading this, and from my newbie English reading skills, I read a strong requirement: the total amount of unencumbered transferable and available funds (liquid assets) that you have, this means, you will have to deduct all the liabilities from all your liquid assets alone.

This is what you can read, and from their point of view, this is the most “safe” approach:
"He won´t be selling his car, he won´t be selling his house, even if he wants he won´t have the money in time, but he still has to pay the car loan, and the cost of living in Canada in addition".
I was wondering, if you should also declare your long term incomes, any long term income may be included on the “fixed or time deposits statements” document. if someone faces a similar situation but with a negative outcome, selling the car will clear most of the liability, someone could take the debt (a corporation, a parent), etc.

Notice the formularies also give some clues, the document checklist only ask for a “current bank certification letter” or “evidence of savings balance” or “fixed or time deposit statements”.
These “proofs” are on the asset side, not the liability side, leaving the whole “car” issue in the air, it would be worth to analyze if the “car event” could be omitted at all (if it affects your outcome, but seems it won´t). I wonder if you can submit a notarized balance sheet since its not expressly named on the formularies (at least the ones I have read)
Finally, since I am a newbie I would recommend you to carry these “ideas", you should explain the requirements to a notary and the philosophy behind for him to be able to help you properly. greetings

Rate my english please! : )