Will UK debts affect my B.C. PR APPLICATION?

[Saeorl1]

I am British. I have been living in Vancouver since April 2019. Working here since June.
2 year Working Holiday Visa.
I have manageable debts back in the UK. I transfer money each month to ensure my debts keep getting paid.
I have been told after 1 year of working in B.C, I can apply for PR.
I plan to start the application in June 2020.
Will my UK debts affect my application?

 

[paulm0920]

They shouldn't, but that does not always mean that they won't. I have noticed that it really depends on the person from IRCC who is reviewing your proof of funds. The problem with the term "unencumbered by debt" is that it is not very well defined policy-wise. Some officers will not take loans that are paid with future income into consideration when calculating your cash liquidity, some factor in 6 months to 1 year worth of payments and deduct that amount from your overall savings to determine your liquidity, and some straight up deduct the entire balance of the loan from your overall savings. It has been rather inconsistent and I have seen multiple cases for each of these scenarios, with the first scenario being the most common approach.

My advice is, if they ask about it, provide a letter of explanation along with

• a letter from your bank saying that there is no concrete obligation for the funds in that account to be used on loan payments (meaning they are technically unencumbered by debt)
• proof of compensation demonstrating that these are enough to pay your monthly dues, further demonstrating that your savings are unencumbered.

Also, and this is the most important thing, I do believe you are qualified for the Canadian Experience Class. All you really need to is write a letter of explanation saying that you were invited under this class and there would be no need to prove any funds at all.