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Onyx

Advice for Proof of Funds

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Onyx

I'm sitting with a dilemma and want to know if anyone has some pearls of wisdom to share. I received an ITA on 13 Jan and am  now in the process of putting together all of the documents and I've hit a snag in the Proof of Funds department. This is a bit of a long story.

 

To explain: In October, I had 99% of the proof of funds and the rest was coming in in time for the application from my earnings. 2/3 was in a Unit trust account and the rest was in a 24hr Call account. So all perfectly acceptable by the CIC, to my understanding. Then the Rand took that massive blow, and the amount you needed just went up. Now with all my sums, I'm more or less 35k down from the total I once needed. So, in order to still qualify, I have to up the amount of money I had really quickly. I have the money I need in a few places, but I either have to call in a loan repayment (my parents owe me a fairly large sum of money), or I have to do a cash deposit. Either way, there is going to a lump sum suddenly entering my account.

 

Now, I know CIC doesn't like lump sums, but is there any way that I can get around this? I was reading up everywhere and apparently if the Proof of Funds is accompanied by an Affidavit stating where the lump sum came from, then it's okay? I've also read up about a Letter of Explanation? Could you somehow explain it in there where it all comes from? If so what documents would need to accompany the letter? Has anyone had this problem with a lump sum being unavoidable and if so, what did you do to get around it?

 

This is partially directed to people who sold items they owned to close the new, sudden gap that has appeared. I have things I can sell fairly quickly, but how do you prove you sold them and that is where the money is coming from? 

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MaryJane

Hi Onyx

A lot of the supporting documentation would depend as to exactly what you are selling. A R35k sale does not sound like selling a refrigerator but more like a car, jewellery or heirloom something. I'm thinking then that you would most likely have a sale agreement, deed of sale, or receipt of some kind?

I believe you can explain it away on a Letter of Explanation (LOE) with supporting documents but I don't think you need to send this LOE immediately with the initial application. But this is just my personal choice and opinion.

I would probably risk CIC asking me later on (if they want to) to send in more documentation with regards the sudden credit. They may do so and quite a likelihood, not.

My take is that R35k doesn't seem to be a big amount as a one-off credit on a bank statement. Again, just my take.

I'd welcome other's viewpoints on this.

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Guest

Onyx, I'd keep the letter short and to the point. You've added a lump sum of money due to the devaluation of the rand. Supply an Affidavit or Letter with copy of a Forex trading report Rand vs CAD. MJ is correct, if required CIC will request additional info.

 

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GrantM

I'd wait for them to query it.

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Nelline

I agree. Wait for them to query it. My feeling is you'll be ok

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Raquel

I agree with the above, wait for them to ask for additional support if required. I think the CIC is more concerned with 50% or 100% loans. I think you should be fine.

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Onyx

Thank you all for your input. I'm going to do a cash deposit to cover the deficit and when I give bank statements and the Letter of Explanation I think I'm going to do what @Lawrence suggested and just call it a deposit to make up for the exchange rate disaster. If they question it, then I'll try and sort out an explanation for it. Keep it all as simple as possible until it needs to get complicated. 

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Guest

You are on the right track. Don't provide anything extra unless asked for it.

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