Hi Seniors,
Need your advice. I am trying to arrange for PoF now but have some confusions. My situation is as explained below:
I have 2 bank accounts:
1. Account1: It has the minimum fund required BUT its a joint account for me, my dad and my mom.
2. Account 2: The account is in my name only BUT it has got 75% of the fund required.
My Questions:
Q1) Based on what i read in CIC website, if i am furnishing a joint account for PoF, the joint account should be in the name of me and my spouse only. Will i be able to use Account1 for this purpose?
This answer is debatable. The CIC website is clear about the joint account being between you and an accompanying spouse; however, there are some who would argue that, as long as your mom and dad provide a signed and notarized affidavit stating you have their full permission and encouragement to use the funds in this joint account for settlement purposes, IRCC would accept it. I provided proof of funds in a joint account with my mom, with a signed and justice-of-the-peace endorsed affidavit; but, because of the uncertainty of this, I made sure that my other indicated source of funds still added up to more than the required threshold, in case this particular source wasn't accepted by IRCC.
Q2) Can i transfer the pending 25% fund from Account 1 to Account 2 and show it as PoF? I am confused because they ask for average balance for 6 months and there will be spike in balance only in the last month.
Because of the uncertainty behind using funds in a joint account where the other joint holder(s) are persons other than an accompanying spouse (see above), this might be a good idea. Don't worry about the '6-month' rule; most people misunderstand it. You don't have to hold the required funds for 6-months. The rule just states you have to provide a 6-month history of the account so that IRCC can see if any suspicious deposits were made during that time (I.e. proceeds from a potential loan you took out to meet the settlement funds, which isn't allowed). As long as you can show a legitimate reason (and the accompanying documentation as proof) for the transfer of that 25% into the account (i.e. transfer of funds from your own account to another), IRCC won't care that the amount wasn't there 5 months prior.
Q3) Can i create Fixed Deposits now (I have to submit eAPR in a month's time) and show it as PoF?
You can, again, as long as you provide documentation to show that the money that went into the Fixed Deposits came from a legitimate source, isn't encumbered, and is yours, free and clear, to use, for settlement.
