Proof of funds - Tips

Proof of funds is required under the express entry program ( federal skilled worker / federal skilled trades) if you don't have a valid job offer from a Canadian employer.

What is a valid job offer?

Now if you get a job offer before or during express entry then that isn't enough. You have to make it official with a job offer letter with the following information -

1. Start date
2. Employer's name and address.
3. More importantly, LMIA i.e. labor market impact assessment number 
4. NOC related to the job - This is important and it should be a skilled occupation if you are claiming points for the job offer letter.

What are the minimum requirements?

1. If you don't have a valid job offer then the Canadian authorities want to ensure that your family can sustain the cost of living while the primary applicant gets a job. Depending on the size of the family, there is a minimum threshold. 
2. The Cic wants to ensure that you have access to funds whenever you need it.
3. You need to get a letter from your financial institution like a bank or investment firm, on their letterhead, proving that you have liquid assets. A letter on a letterhead provides authenticity and so try to get a letter!
4. Choose the assets that are very easy to explain and have less ambiguity around the net value.

What types of assets are accepted?

• Most liquid assets - Cash, fixed income assets like fixed deposits  or treasury bills, whose value rarely fluctuates. These are very easy to explain.
• Very difficult to liquidate assets - Property like land or house are difficult to evaluate (since prices fluctuate) and so they are not acceptable.
• The proof of funds letter needs to be on the letterhead of the institution because the authorities want to ensure that the source of funds is good i.e. not illegal. 

What are some things I should look for?

• Look at the average 6 month balance and current balance. 
• If you have a big difference between the amounts then consider explaining it in the letter of explanation.  For example,  you could have received your tax return in the month because of which your current balance would have spiked up.
• If you have received a huge gift from your family member then add a gift deed (the person giving you the gift should be signing the deed.). Gift deed means that the amount was given to you by your family member without expectations of the amount being returned. In other words,  it is available to you in Canada.

What are the specifications of the letter?

• The letter needs to have a 6 month average balance and the current balance.  If there is a huge discrepancy between the average and current, please explain it in the letter of explanation. For instance if you got a tax return due to which your current balance is much higher.
• You need to specify the currency of the assets i.e. USD, CAD, INR etc.
• Don't just upload the online bank statements as the proof of funds. It would be rejected. The authorities want to see your entire picture, which typically the online statement wouldn't have i.e. 6 month average balance,  loan if any.
• Every financial institution like bank has it's policies. So they may not give every detail that is asked but you can attach online statements as a supporting document.
• You can get letters from multiple institutions to meet the minimum threshold requirements.  It may not be the ideal letter but do give whatever you have and support it with the supporting statements.

What can you use the letter of explanation for?

• If you use multiple institutions as proof of funds then you can improve the visa officer's experience by creating a table that states the average and current balances. This would help them understand the various attachments that you may have attached.
• If you have fund in multiple currencies then you can convert it to CAD. Use conversion rate on a particular date and convert the currencies.

How can I procure this letter?

• You need to assess your finances and select an institution that you can use. Approach the institution and ask them to give you a letter for immigration purposes. 
• Some institutions have experience with this  but others don't.  That is why I want to help you with templates. See below in the next steps. You can ask the institution to give you a letter in that format.

Can I use the funds in the bank account or break my fixed deposits post submission of my Express entry application?

At the time of landing, as long as you have the ability to sustain your family in Canada, you should be good. Be ready to answer questions on why you had to use that money and your plan for source of funds. In our case, they didn't ask us any proof of funds but there were instances with our friends, who were asked about their proof of funds. So we were prepared with the letter from our financial institutions. 

Next steps -

1. Thoughts about using 401K as proof of funds? Read along here.
2. Templates for savings account and fixed deposits.
3. Want to work on other parts of your application?
4.  Ready  to submit your application? Here are some things you should know.

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