Question on POF

[Hhh466]

On the letter I received from my bank the closing balances for the past 6 mo ths have been: 11k, 13k, 11k, 12k, 25k and 33k.

Do I need sort of LOE explaining the large balances or is that nkt required since my average was above the 12k required? Please advise.

Thanks.

 

[Asivad Anac]

Yes. Especially to explain those jumps from 12k to 25k and 25k to 33k.

 

[Hhh466]

Yes. Especially to explain those jumps from 12k to 25k and 25k to 33k.

How should I go about that? My father sent me wire transfers so all I need is a signed letter from him saying the money doesn't need to be paid back? Another thing is that the wire transfers come to my bmo account due to lower fees but as soonnas the money comes I deposit it in to my td account. Thats the only function of the bmo account. Does my father in the letter have to state which account the money went in to? If so, do I need to attack a statement from bmo too or just mention in the LOE that it comes to bmo and then I transfer it to TD? The bmo account is usually always sitting at 0 but that shouldn't matter right?

 

[Asivad Anac]

A signed self-declaration from your father is mandatory to explain that this is a gift not a loan hence need not be repaid. The remaining transaction detail can be safely explained in the LOE.

You have to explain BOTH the jumps.

 

[Hhh466]

Does my father need to mention the amounts and other bank account details too or just that X amount on such and such date was a gift and not a loan? This self declaration can be on a plain paper? Signed and dated?

Alternatively, I can avoid all these steps if my bank just mentions the average for 6 months and the current balance correct? Will I still need to provide LOE since my current balance will be approx 6knmore than my average? Or I can also withdraw funds to bring my current balance in line with my average?

 

[Asivad Anac]

Does my father need to mention the amounts and other bank account details too or just that X amount on such and such date was a gift and not a loan? This self declaration can be on a plain paper? Signed and dated?

Yes. Mention all transaction details. On a plain paper, dated and signed.

Alternatively, I can avoid all these steps if my bank just mentions the average for 6 months and the current balance correct? Will I still need to provide LOE since my current balance will be approx 6knmore than my average? Or I can also withdraw funds to bring my current balance in line with my average?

Recommend not doing that. It will be easier but it is always better to not allow CIC any space to question you further.

 

[Hhh466]

Is this a suitable format for the declaration? Any other details that I should include?

I _____ on ___june and __july sent $x and $y respectively to my son as a gift. The money sent was not a loan and hence does not need to be repaid. Thank you.

Signature,

Thanks a lot for your help!

 

[Asivad Anac]

Is this a suitable format for the declaration? Any other details that I should include?

I _____ on ___june and __july sent $x and $y respectively to my son as a gift. The money sent was not a loan and hence does not need to be repaid. Thank you.

Signature,

Thanks a lot for your help!

Good start but won't suffice.

Include transaction details - bank account(s) of sender and receiver with bank details including name & branch, date(s) of transaction(s), wire transfer reference number(s), amount(s) in the currency where they originated.

 

[Hhh466]

What if along with that drafted letter from my previous post I include the transaction record of the wire itself from my fathers bank? Will that suffice since that will have all the details or do I have to write it down in the letter?

 

[Asivad Anac]

What if along with that drafted letter from my previous post I include the transaction record of the wire itself from my fathers bank? Will that suffice since that will have all the details or do I have to write it down in the letter?

Either way would work. Submitting the actual wire transfer records as supporting evidence would be more credible for sure.

 

[Mrs Aj]

On the letter I received from my bank the closing balances for the past 6 mo ths have been: 11k, 13k, 11k, 12k, 25k and 33k.

Do I need sort of LOE explaining the large balances or is that nkt required since my average was above the 12k required? Please advise.

Thanks.

This is getting confusing... Would appreciate some confirmation please. Is the letter from the bank supposed to state closing balances for the past 6 months or average of account balance for the past 6months. Mine only lists my current balance, and the average balance for the past 6months i.e 2 figures only on my letter. I thought it was supposed to be closing balance for the past 6months, divided by 6 to get a single figure as average balance for the past 6months. Do I need to get a statement

 

[Asivad Anac]

This is getting confusing... Would appreciate some confirmation please. Is the letter from the bank supposed to state closing balances for the past 6 months or average of account balance for the past 6months. Mine only lists my current balance, and the average balance for the past 6months i.e 2 figures only on my letter. I thought it was supposed to be closing balance for the past 6months, divided by 6 to get a single figure as average balance for the past 6months. Do I need to get a statement

Each bank has their own way of doing this and no one way is better or worse than the other.

All CIC needs this for is to determine if there are unreasonably large credit transactions which might indicate the presence of borrowed funds. Your letter shows 2 figures - if the difference between the 2 figures is upwards of, say, 20% then you will need to provide an explanation for the same. Else, you have nothing to worry about on this front.

 

[Mrs Aj]

thank you @Asivad

 

[vjroB$]

Each bank has their own way of doing this and no one way is better or worse than the other.

All CIC needs this for is to determine if there are unreasonably large credit transactions which might indicate the presence of borrowed funds. Your letter shows 2 figures - if the difference between the 2 figures is upwards of, say, 20% then you will need to provide an explanation for the same. Else, you have nothing to worry about on this front.

Hi Asivad,

In the POF letter which I have submitted my closing balance is CAD 19000, however, the average balance for last six months is CAD 8000. To support that the funds are not borrowed, I have attached my six months statement without any LOE.

Will it be ok with CIC?? Any guesses?

 

[Asivad Anac]

Hi Asivad,

In the POF letter which I have submitted my closing balance is CAD 19000, however, the average balance for last six months is CAD 8000. To support that the funds are not borrowed, I have attached my six months statement without any LOE.

Will it be ok with CIC?? Any guesses?

You might be asked to explain the huge difference between closing balance and average balance. Be prepared with documents in case CIC asks you to validate source of funds.