Proof of Funds - Expert Opinion required

[rughdaabrahani]

Hi,
I work in U.A.E and have two bank accounts in U.A.E and a personal loan i.e 250k AED (that was taken for some other reasons and is a unsecured loan). The installment of the personal loan is directly debited from my salary account. have learnt from different resources that IRCC doesn't checks the net assets instead they just check the proof of funds at that point of time.

I have just sent my documents for WES evaluation an my score falls at around 446 so expecting my ITA to be received maximum by November end, however, I need advise on the minimum balance requirement as I have to maintain a 6 months bank statement.

I will be able to maintain the required balance in next 4 months from saving from my salary. I have explained the following situations that how I will be meeting my requirement.

i. I can save the required amount for POF by skipping my 2 months personal loan installments (bank gives me an option to skip some of the installment and in such case no deduction will be made from my account for those specific months) and can submit the same bank statement to IRCC? However in this case, for 2 months a deduction will be shown from my account i.e for my personal loan. This is a salary credit account. Is it fine to skip the installments and arrange funds and do I need to disclose the loan which is being debited from my account every month?

ii. I can save the amount for POF by skipping my 2 months personal loan installments and transfer the savings into a separate account. In this case, no deduction will be reflected in my bank statement, however, this will not be a salary transfer account. Is it fine to skip the installments and arrange funds and do I need to disclose the other account also from which is the monthly personal loan installment is being debited from my account?

iii. I can save the amount for POF by skipping my 2 months personal loan installments and make an arrangement whereby my mother gives me the gift deed. In this case, the amount will be transferred to my pakistan account. I can legalize the gift deed and provide my Pakistan bank statement. In this case also, do I need to provide U.A.E bank statement? and do I need to disclose my loan and my salary account bank statement?

Kindly advise me the best way out for this.
Thank you in advance.

 

[rughdaabrahani]

Hi,
I work in U.A.E and have two bank accounts in U.A.E and a personal loan i.e 250k AED (that was taken for some other reasons and is a unsecured loan). The installment of the personal loan is directly debited from my salary account. have learnt from different resources that IRCC doesn't checks the net assets instead they just check the proof of funds at that point of time.

I have just sent my documents for WES evaluation an my score falls at around 446 so expecting my ITA to be received maximum by November end, however, I need advise on the minimum balance requirement as I have to maintain a 6 months bank statement.

I will be able to maintain the required balance in next 4 months from saving from my salary. I have explained the following situations that how I will be meeting my requirement.

i. I can save the required amount for POF by skipping my 2 months personal loan installments (bank gives me an option to skip some of the installment and in such case no deduction will be made from my account for those specific months) and can submit the same bank statement to IRCC? However in this case, for 2 months a deduction will be shown from my account i.e for my personal loan. This is a salary credit account. Is it fine to skip the installments and arrange funds and do I need to disclose the loan which is being debited from my account every month?

ii. I can save the amount for POF by skipping my 2 months personal loan installments and transfer the savings into a separate account. In this case, no deduction will be reflected in my bank statement, however, this will not be a salary transfer account. Is it fine to skip the installments and arrange funds and do I need to disclose the other account also from which is the monthly personal loan installment is being debited from my account?

iii. I can save the amount for POF by skipping my 2 months personal loan installments and make an arrangement whereby my mother gives me the gift deed. In this case, the amount will be transferred to my pakistan account. I can legalize the gift deed and provide my Pakistan bank statement. In this case also, do I need to provide U.A.E bank statement? and do I need to disclose my loan and my salary account bank statement?

Kindly advise me the best way out for this.
Thank you in advance.

Anyone please?

 

[crescent_jam]

Anyone please?

I'm not sure I'm understanding your situation to it's full extent, because you've presented us with a lot of information, but hopefully my general advice can help:

Firstly, the '6 month balance' rule doesn't require you to have maintained the settlement funds threshold (for a single applicant, currently CAD$12,300) for the entire 6 months. People tend to misunderstand it. The reason CIC asks for 6 months of your account history, isn't so that they can prove you maintained $12,300 for an entire 6 months. They're just trying to check for any large or unexplained deposits that could rouse suspicion and possibly be funds from a loan that you're trying to pass off as your own, unencumbered funds (funds from a loan cannot be used as settlement funds as they're not, technically, YOUR funds).

So if you're planning to skip loan payments just so you can show $12,300 for 6 months straight, I wouldn't recommend this. Pay your loan. As long as you have $12,300 or more at the time of submission of your eAPR (electronic application for permanent residency), which would be, at most, 90 days after you get your ITA, then you're fine. If your account goes below $12,300 before that time, that's fine, as long as you don't have any 'suspicious' deposits to get it back to that final threshold amount.

You must disclose your loan. CIC specifically asks for official letters from your banks and financial institutions that, among other things, list "outstanding debts such as credit card debts and loans". If you don't disclose the loan, and it somehow comes to light during CIC's background check of you, they're going to be concerned about why you didn't mention it.

The general consensus on this forum, though, is that having loans shouldn't hurt your application too much (unless you used the funds from the loan as part of your settlement funds), because loan payments will be paid from future income. That being said, I think it's a good idea, if you have any large loans, to write a letter of explanation (LOE) explaining how you plan to service this loan, without using your claimed settlement funds.

Some persons have argued that you only need to provide statements for the accounts in which your settlement funds are held, and that you don't need to tell CIC about any other accounts or provide information for these, but I'm not so sure about that. CIC's instructions clearly say "you must get official letters from any banks or financial institutions where you are keeping money". While they're probably most concerned with whether or not you have the settlement funds needed, they still need an idea of your entire financial profile because activities in undisclosed accounts could affect your ability to use the funds you claimed for settlement purposes only.

In summary:

• Don't worry too much about the 6 months before the submission of your application as long as you have the required amount by the time you're ready to submit your application
• Don't avoid making loan payments UNLESS you have no other way to get to the threshold by that time of submission
• Don't hide or omit anything and be upfront about your financial profile with CIC

 

[rughdaabrahani]

I'm not sure I'm understanding your situation to it's full extent, because you've presented us with a lot of information, but hopefully my general advice can help:

Firstly, the '6 month balance' rule doesn't require you to have maintained the settlement funds threshold (for a single applicant, currently CAD$12,300) for the entire 6 months. People tend to misunderstand it. The reason CIC asks for 6 months of your account history, isn't so that they can prove you maintained $12,300 for an entire 6 months. They're just trying to check for any large or unexplained deposits that could rouse suspicion and possibly be funds from a loan that you're trying to pass off as your own, unencumbered funds (funds from a loan cannot be used as settlement funds as they're not, technically, YOUR funds).

So if you're planning to skip loan payments just so you can show $12,300 for 6 months straight, I wouldn't recommend this. Pay your loan. As long as you have $12,300 or more at the time of submission of your eAPR (electronic application for permanent residency), which would be, at most, 90 days after you get your ITA, then you're fine. If your account goes below $12,300 before that time, that's fine, as long as you don't have any 'suspicious' deposits to get it back to that final threshold amount.

You must disclose your loan. CIC specifically asks for official letters from your banks and financial institutions that, among other things, list "outstanding debts such as credit card debts and loans". If you don't disclose the loan, and it somehow comes to light during CIC's background check of you, they're going to be concerned about why you didn't mention it.

The general consensus on this forum, though, is that having loans shouldn't hurt your application too much (unless you used the funds from the loan as part of your settlement funds), because loan payments will be paid from future income. That being said, I think it's a good idea, if you have any large loans, to write a letter of explanation (LOE) explaining how you plan to service this loan, without using your claimed settlement funds.

Some persons have argued that you only need to provide statements for the accounts in which your settlement funds are held, and that you don't need to tell CIC about any other accounts or provide information for these, but I'm not so sure about that. CIC's instructions clearly say "you must get official letters from any banks or financial institutions where you are keeping money". While they're probably most concerned with whether or not you have the settlement funds needed, they still need an idea of your entire financial profile because activities in undisclosed accounts could affect your ability to use the funds you claimed for settlement purposes only.

In summary:

• Don't worry too much about the 6 months before the submission of your application as long as you have the required amount by the time you're ready to submit your application
• Don't avoid making loan payments UNLESS you have no other way to get to the threshold by that time of submission
• Don't hide or omit anything and be upfront about your financial profile with CIC

Thank you so much for your response, this seems to be the most wise thing. I will try not to skip any installments and will save from the same account till the time of submission.Please check if the following explanation suffice.

I will disclose my loan and prepare a letter of explanation specifying that I intend to service my loan by the following:
i. From my further monthly income till I am working in Dubai
ii. From my gratuity payments, the gratuity payment will be able to cover my 8 months installment (I will specify the approximate amount of gratuity payment)
iii. If need be, I will pay the full/partial amount by selling one of my property that is on my name ( Do you think in this case I shall attach the legal document specifying that the property is on my name) or the first two options are enough?

Thank you again for your help.

 

[crescent_jam]

Thank you so much for your response, this seems to be the most wise thing. I will try not to skip any installments and will save from the same account till the time of submission.Please check if the following explanation suffice.

I will disclose my loan and prepare a letter of explanation specifying that I intend to service my loan by the following:
i. From my further monthly income till I am working in Dubai
ii. From my gratuity payments, the gratuity payment will be able to cover my 8 months installment (I will specify the approximate amount of gratuity payment)
iii. If need be, I will pay the full/partial amount by selling one of my property that is on my name ( Do you think in this case I shall attach the legal document specifying that the property is on my name) or the first two options are enough?

Thank you again for your help.

Again, I'm no expert but, yes, this seems like a good way to go, in my personal opinion

 

[rughdaabrahani]

Again, I'm no expert but, yes, this seems like a good way to go, in my personal opinion

Thank you, since now I am aligned with this option, I will consult this option with some of the seniors too.

Thank you again for your help.