I'm just starting to fill out the simplified application form for permanent residence, from Uk to Canada. There are 5 family members going and we will need funds of $21,431. Question 25 asks how much unencumbered funding do I have available. I am planning to sell my UK home once I've been accepted, which will give me about $400,000 Canadian dollars to take with me. But I do not yet have any funds available in Canadian dollars. By the time the form comes to be assessed I can probably have raised about $10,000 but will still be relying on the equity in the house for the rest. What should I put on the form? Can anyone help?
Meaning of 'unencumbbered funds'
- Thread starter jo13
- Start date
Unencumbered means funds that are not tied up or otherwise claimed - as in your assets less liabilities. But it has to be liquid funds, not real estate.
When you file your application, you are attesting that everything is correct as of the date of your application. However, one of the benefits of filing the simplified application is that you provide very few support documents up front.
If you state you have less money than is required for a family of 5, your application could (probably will) be returned.
A legal option would be to borrow money from a relative and secure it with a lien against your home.
Barring that, you'll have to use your best judgement.
When you file your application, you are attesting that everything is correct as of the date of your application. However, one of the benefits of filing the simplified application is that you provide very few support documents up front.
If you state you have less money than is required for a family of 5, your application could (probably will) be returned.
A legal option would be to borrow money from a relative and secure it with a lien against your home.
Barring that, you'll have to use your best judgement.
This is in addition to the first response.jo13 said:
To reiterate, you do not need to mention anything at this time about your "unencumbered funds."
Since you now have an idea of your settlement funds, you still have time on your hands to come up with the required amount.
If you can, you can contemplate this as well. Other than borrowing money from a relative, you can explore a refinancing home equity loan from your financial institution, and put the borrowed money to work at a different financial institution as a certificate of deposit or any other financial instrument that pays you interest and is liquid at any time or upon a given date.
Just be hopeful that you can get an equity loan for that amount, and that your financial institution can let you refinance for any purpose.
Of course, when you finally sell your home, it might have yielded some more equity for you to have a return on your debt financing.
Explore your options - relatives, financial institutions, and see what is available to you.
Proof of funds also includes such liquid funds as any savings bonds that you might have.
Don't forget that you can also show any eligible liquid pension funds in your name as proof of funds together with these other types of liquid funds.
So, as you can now see, the funds must be liquid, and can be readily turned into cash for your immediate use with no restriction whatsoever.
