POF: Is "No Liability" letter required?

[mhammoud]

Hello Everyone,

For POF, I am submitting details from two banks. In one I have a fixed deposit account with no loans, while in the other I have a current with a credit card and auto loan.

So what I got till now: Reference letter and statement from the first one and reference letter, statement, and liability letter from the second.

My question is: Should I be providing a "No Liability" letter from each bank I have account in? Knowing that I got a letter for my only loans.

Thank you

 

[cjs]

You only need bank statement or balance certificate letter. no need to submit no liability letter. CIC just want to see if you have sufficient funds. they are not concerned about liabilities or assets.

 

[joelmath]

You only need bank statement or balance certificate letter. no need to submit no liability letter. CIC just want to see if you have sufficient funds. they are not concerned about liabilities or assets.

This is incorrect. Debt information is indeed part of POF letter.

"The applicant should provide official letter(s) from financial institution(s) that list all current bank and investment accounts as well as outstanding debts such as credit card debts and loans."

With that said, several applicants chose to not disclose their debts as CIC does not factor-in the assets that the applicant has. For example, a home loan is a liability that CIC wants to know about but does not take into consideration that the home loan will lead to an asset as well.

You can chose to not disclose your debts like several other applicants but do not do it under the impression that "CIC did not need that information anyway".

 

[cjs]

you are right joelmath, but I also meant the same that liability and assets are not considered. they need to see if we have enough funds and those funds belong to us.

 

[mhammoud]

This is incorrect. Debt information is indeed part of POF letter.

"The applicant should provide official letter(s) from financial institution(s) that list all current bank and investment accounts as well as outstanding debts such as credit card debts and loans."

With that said, several applicants chose to not disclose their debts as CIC does not factor-in the assets that the applicant has. For example, a home loan is a liability that CIC wants to know about but does not take into consideration that the home loan will lead to an asset as well.

You can chose to not disclose your debts like several other applicants but do not do it under the impression that "CIC did not need that information anyway".

Hi Joelmath,

Actually I am declaring my auto loan and credit cards but my question was if I need a No Liability letter from banks I have account in but no loans.

 

[joelmath]

Hi Joelmath,

Actually I am declaring my auto loan and credit cards but my question was if I need a No Liability letter from banks I have account in but no loans.

You know that you do not have a loan in XYZ bank but how will CIC know that. So if it is available, get a letter stating no loans/liability for your other bank accounts as well.

 

[mhammoud]

You know that you do not have a loan in XYZ bank but how will CIC know that. So if it is available, get a letter stating no loans/liability for your other bank accounts as well.

The same applies to bank accounts.. CIC does not require you to declare all the bank accounts you have. The objective of the POF is to have a proof that you own the minimum amount requested.

 

[itaurine]

Hello Everyone,

For POF, I am submitting details from two banks. In one I have a fixed deposit account with no loans, while in the other I have a current with a credit card and auto loan.

So what I got till now: Reference letter and statement from the first one and reference letter, statement, and liability letter from the second.

My question is: Should I be providing a "No Liability" letter from each bank I have account in? Knowing that I got a letter for my only loans.

Thank you

In the exact same boat as you.

 

[kryt0n]

This Liability letter thing has only really cropped up lately.

CIC don't know you have other accounts unless you tell them and you can have a credit card not linked to the bank you have your funds in etc.

The only way this could be an issue is that if you go from 0 funds to all funds in the last month of your statement. If it looks like you got this from a credit card and you didn't declare the credit card, then you may be in trouble.

 

[applicant_2016]

Hello All,
Any inputs/feedback on this ? I am in a similar situation - have enough funds to show but also have a car loan in the same bank where I have the money. I have about 20000 CAD in a/c but also a car loan of about 34000 CAD EMI for which I pay every month. Every looks good except the loan part - I am not sure how CIC considers it.

Anyone who has gone through similar situation - please advise.

Thank you in advance.

 

[uppperkut]

You need a "Liability" letter.

A "No liability" letter means you have no outstanding debts, and that is not required of you.