What constitutes Proof of Funds? (All queries regarding POF procedure ask here)

[kaizadhans]

I have Fixed deposits that i want to show for x amount. Will that count as proof of funds? What is their lock in period that is allowed or considered as valid POF by the CIC authorities?

I have share holding from past 'X' years. Will that count proof of funds?

I have 'y' amount in my PPF account. (Public provident fund). Will that count as a POF?

I have 'Z' amount in bank a, bank b and bank c. Can i show a combined balance of all three banks plus my F.D's as POF inspite of them being in different banks? If yes then what is the procedure and format to do so?

If i get ITA and arrange to take loan from friends and relatives and transfer the money into a single acccount so as to create a balance of a min 12000$ which is like very hard for a middle class indian working guy like me. Still if i manage to do it, will that be considered as a POF?

What are all the alternative options possible through which we can show POF?

Any other questions, please everyone feel free to ask. This thread should contain questions only related to POF and its constituents.

 

[Asivad Anac]

I have Fixed deposits that i want to show for x amount. Will that count as proof of funds? What is their lock in period that is allowed or considered as valid POF by the CIC authorities?

Yes. Provided you can surrender the FDs to your bank at short notice and there will be enough funds left over to count as POF after taking out bank deductions, if any. I would imagine CIC wouldn't have any concerns with lock-in periods unless there is some caveat that you cannot liquidate the FD for a certain time period. That won't be acceptable POF for CIC.

I have share holding from past 'X' years. Will that count proof of funds?

No.

I have 'y' amount in my PPF account. (Public provident fund). Will that count as a POF?

No. Unless you're able to get that money into your bank account.

I have 'Z' amount in bank a, bank b and bank c. Can i show a combined balance of all three banks plus my F.D's as POF inspite of them being in different banks? If yes then what is the procedure and format to do so?

Possible. Get balance certificate/statement in the required format from each of the banks, scan them as a single file and upload along with an LOE which shows in a simple tabular format that collectively the 3 accounts have sufficient funds required towards POF.

If i get ITA and arrange to take loan from friends and relatives and transfer the money into a single acccount so as to create a balance of a min 12000$ which is like very hard for a middle class indian working guy like me. Still if i manage to do it, will that be considered as a POF?

POF has to be unencumbered. Taking a loan to show POF is not allowed. Taking a gift is allowed provided it is legal in your country and you calculate and pay associated taxes, if any. Ask the donor to sign a self-declaration that explains that the particular transaction (include all possible transaction details inc amount, date, bank account numbers, wire transfer ref numbers etc) was a gift to the recipient (Principal Applicant) for settlement purposes and NOT a loan that needs to be returned at any point in time.

What are all the alternative options possible through which we can show POF?

Any alternative has to ensure that the monies are available in a bank account - that's how CIC rolls.

Purpose

To confirm whether the applicant meets the low income cut-off (LICO), as assessed by amount of money they hold compared to the number of people in their family

Document requirements

The applicant should provide official letter(s) from financial institution(s) which list all current bank and investment accounts, as well as outstanding debts such as credit cards and loans. The letter(s) must be printed on the letterhead of the financial institution and must include applicant’s name, the contact information of the financial institution (address, telephone number and e-mail address), the account numbers, dates of when each account was opened and the current balance of each account as well as the average balance in the past six months. Other documents may also be requested, as necessary.

Individuals who must submit this documentation

The principal applicant

Any other questions, please everyone feel free to ask. This thread should contain questions only related to POF and its constituents.

 

[rigel]

Hello Asivad,

Could you tell me, how long is a bank certificate/letter valid for?

 

[Asivad Anac]

Hello Asivad,

Could you tell me, how long is a bank certificate/letter valid for?

CIC doesn't put any explicit timelines around this. Get this certificate as close as possible to submission post ITA and ensure funds remain untouched till the end of the process.

 

[kaizadhans]

Asivad, what if my blood relatives in canada are well to do. Can they show POF on my behalf? I dont still quite understand that if i have 50% of the required amount in my bank account, then how can i arrange for the remaining 50%? Can i arrange to take it from from blood relatives in india? if yes, then just a self declaration letter will do? If yes, then should i transfer the money in my account and then show it to CIC? how does this kind of situation works? if you could answer from an indian context then that would be better for me! cuz i can't find any laws regarding paying tax on gift from someone.

 

[Asivad Anac]

Asivad, what if my blood relatives in canada are well to do. Can they show POF on my behalf? I dont still quite understand that if i have 50% of the required amount in my bank account, then how can i arrange for the remaining 50%? Can i arrange to take it from from blood relatives in india? if yes, then just a self declaration letter will do? If yes, then should i transfer the money in my account and then show it to CIC? how does this kind of situation works? if you could answer from an indian context then that would be better for me! cuz i can't find any laws regarding paying tax on gift from someone.

A self-declaration letter will do. It has to accompany the actual money transfer into your account and has to explicitly declare that this transaction is a gift and not a loan hence it doesn't need to be returned to the donor. Preferably a blood relative as the donor though it can be anyone else as well. CIC might have a few questions about the intent of the transaction if it happens to be someone random rather than a relative. CIC doesn't care about the taxes (if any) associated with this transaction in your country provided the funds in your account stay north of the POF requirement throughout the process.

Hope this clarifies.

 

[purplesnow]

no one can show funds on your behalf. If you intend to borrow the money, you need them to sign a legal document stating the funds are a gift and they do not need or expect it to be repaid. ie unencumbered.
If you inherit money, you need to prove that you've inherited it and not that someone just gave it to you, and you need to have paid all the applicable inheritance fees and taxes.
if there is a large deposit, or a leap in funds, in your account, you need to show them where it came from.

 

[vsu]

Please could someone help me with the requirements of Proof of Funds:

a) Is this the monthly statement that we receive for our accounts through post ?

b) If not , has some one got it in CIC specific template from Royal Bank of Canada ( RBC ). The branch seems to be absolutely clueless about it.

c) Are RRSP and RPP are included as part of proof of funds?

d) has someone got the proof of funds from HDFC Bank in India in the specific format ?

Sorry for so many questions.. Thanks a lot..

 

[Hannah0605]

Hi
I am pledging my gold to raise the funds. So how long should I lock the amount in the bank. And should I carry the amount or bank statement to Canada if i get an invite? I haven't applied yet waiting to collect all necessary documents.

Thanks in advance

 

[Asivad Anac]

Please could someone help me with the requirements of Proof of Funds:

a) Is this the monthly statement that we receive for our accounts through post ?

No.

b) If not , has some one got it in CIC specific template from Royal Bank of Canada ( RBC ). The branch seems to be absolutely clueless about it.

Show them "Proof of Funds" at this link (http://www.cic.gc.ca/english/resources/tools/perm/express/intake-complete.asp) and tell them that's all CIC needs from them.

c) Are RRSP and RPP are included as part of proof of funds?

Anything which is not cash or readily convertible to cash is not included in POF. Retirement funds or pension plans aren't usually liquid enough so it would be a No here.

d) has someone got the proof of funds from HDFC Bank in India in the specific format ?

Sorry for so many questions.. Thanks a lot..

 

[Asivad Anac]

Hi
I am pledging my gold to raise the funds. So how long should I lock the amount in the bank. And should I carry the amount or bank statement to Canada if i get an invite? I haven't applied yet waiting to collect all necessary documents.

Thanks in advance

Pledging gold is equivalent to borrowing money against an asset which makes those funds encumbered. CIC insists on unencumbered funds. Since you haven't started the process, there is a way out for you. The process will take at least 6 months from the time you create your profile. Pledge the gold right away and put the money in your account and leave it there till you get your PR. CIC will go back only 6 months to check for source of funds and you'll be safe in this case even though it is a procedural loop hole that you are exploiting to your advantage.

You don't have to carry the entire amount to Canada - how much you take with you is your choice. Do note that immigration authorities at the landing airport might ask you about POF. Also note that you have to notify them if you are carrying more than 10,000 CAD with you.

All the best!

 

[Hannah0605]

Thanks a ton! I'll work on it right away..

 

[chigursr]

Hi All,
I have bank statements with 12k plus only since May 11th 2015. If I show 6 months bank statements i.e since jan it will show transactions of debit and credits in the range of $8k-11. I am trying to apply for OONP, since may the funds are untouched except for small amounts. Is this enough or do I need to attach a declaration explaining my source of funds.

Thanks.

 

[Asivad Anac]

Hi All,
I have bank statements with 12k plus only since May 11th 2015. If I show 6 months bank statements i.e since jan it will show transactions of debit and credits in the range of $8k-11. I am trying to apply for OONP, since may the funds are untouched except for small amounts. Is this enough or do I need to attach a declaration explaining my source of funds.

Thanks.

It is advisable to attach that declaration because unexplained large credits do look suspicious when it comes to POF. Of course, that letter is in addition to the regular format bank certificate required by OOPNP (for now) and CIC (for post ITA).

All the best!

 

[chigursr]

It is advisable to attach that declaration because unexplained large credits do look suspicious when it comes to POF. Of course, that letter is in addition to the regular format bank certificate required by OOPNP (for now) and CIC (for post ITA).

All the best!

Thanks, like I mentioned in a different thread I shall be attaching my salary slips and income tax returns and official salary certificate from my company on their letterhead with my personal declaration as proof of source of funds. Do you think Ontario immigration will be satisfied with these documents.