Equity as part of funds?

Old Sep 26th 2009, 1:55 am
  #1  
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Question Equity as part of funds?

Hello

In the initial application to Sydney can I include the value of equity (unreleased) in my house as part of the funds?

For the next stage for London, is it the same?

At landing, is equity still allowed or does it have to be cash assets by then?

Thanks
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Old Sep 26th 2009, 4:03 am
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Default Re: Equity as part of funds?

Officially you have to have the 'unemcumbered' funds available to be used. They can't be part of a loan or mortgage. CHC London have in the past accepted equity as proof of funds, though someone else on here said that they have tightened up.

Do a search and see.......
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Old Sep 26th 2009, 4:25 am
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Default Re: Equity as part of funds?

The visa office in London accept equity in many cases but before visa issuance it must be liquid funds to the minimum.
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Old Sep 26th 2009, 5:26 am
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Default Re: Equity as part of funds?

Hi Jim,

I asked this of a few people and not one person really can give a definite answer.
If unlike a couple of years back you don't sell your property due to the current market, rent it out while you move to Canada and wait for the UK market to pick up.

Surely if to date(as I have) used equity in the property but under the above circumstances not sold your property would they still insist on you gaining cash funds from another source?
I am sure "technically" this is the case but if CHC London ask you could say you are waiting to sell, would they demand to see funds as it clearly says on all the letters " do NOT dispose of any property until you have been granted a visa".....so if you should not dispose until you get the visa but London accept equity up until that point its a catch 22??

I understand why someone at the border may ask(although it seems very, very few do) but London would surely be asking the impossible.

Personally I do not intend on moving until I secure a job after our visa is issued(waiting for PPR) so if someone at the boarder asks I can at least show letter of employment.

Any thoughts on the above would be most welcome though.

Thanks.
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Old Sep 26th 2009, 5:59 am
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Default Re: Equity as part of funds?

If you do not have a job awaiting you in Canada and are not obviously wealthy then I feel they would like to see spendable cash or clearly easily liquidated assets to the minimum they require.
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Old Sep 26th 2009, 8:38 am
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Default Re: Equity as part of funds?

When you "they" is that CHC London or at the boarder?
I see from your signature you are a former visa officer so great to get your input, but it does seem strange that up to a certain point equity is ok and then they flip(and they would ask for proof before they issue your visa I assume) and ask for liquid assets?

Would it not just follow through that London check once again before they issue that you still have equity with the belief you would then sell up before your move to Canada?
Is that not down to the people when landing to check? Otherwise why ever even bring equity in to it if before the issue you with the via they expect you to have liquid funds??

Sorry but just seems at little crazy!
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Old Sep 26th 2009, 9:25 am
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Default Re: Equity as part of funds?

Hi

Originally Posted by UserXXXXXX
When you "they" is that CHC London or at the boarder?
I see from your signature you are a former visa officer so great to get your input, but it does seem strange that up to a certain point equity is ok and then they flip(and they would ask for proof before they issue your visa I assume) and ask for liquid assets?

Would it not just follow through that London check once again before they issue that you still have equity with the belief you would then sell up before your move to Canada?
Is that not down to the people when landing to check? Otherwise why ever even bring equity in to it if before the issue you with the via they expect you to have liquid funds??

Sorry but just seems at little crazy!
But remember it is only London, every other office, wants to see cash on application and although it is not always checked, on "landing" as well.
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Old Sep 26th 2009, 9:48 am
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Default Re: Equity as part of funds?

The visa office wishes to be sure you can support yourself for a reasonable time before you find work. As PMM states it is only London that accepts illiquid equity at any point in the process and then only initially.

Last edited by Jim Humphries; Sep 26th 2009 at 9:50 am.
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Old Sep 26th 2009, 10:07 am
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Default Re: Equity as part of funds?

Thanks PMM and Jim.

I do understand why they ask and why they do it, it makes sense that you can as you point out support yourself if needs be.
However the conundrum is as you say "initially"....why at all if not from point 1 to 100....why stop at point 99 and say "forget the equity now we want cash that all along we never asked for but now you must come up with.....yes we know its tied up in your house and we accepted that before but not now mate!"

As PMM points out either get rid like every other office and ask for liquid assets from the off or carry it through, it just seems kind of a mess to make an initial application and have it accepted and then at the very last point not accept it and force people to then find the cash.

In my mind it would make much more sense to ask people from the off, let them have time to obtain it over the months of the process and then ask for it.
Under the current rules you think happy days, I use the equity, then sell the house AFTER PR is granted and hey presto.
As it is are we saying that basically its pointless ever using the equity as in the end its cold, hard cash that they want to see?

Again I understand why but why even give the illusion of accepting equity when in reality come the crunch they are not??
We are hoping to rent our place so it seems I will need to secure a job(always my intention) first, but I was hoping to get this after PR as I would no longer need it approved.

However if the case is I need liquid assets before they grant PR and I am not willing to sell my house and I do not have a job yet I am either forced to sell the house(no chance!) or apply through for a job via the whole HR(FSW 1) route...in which case I could have applied for that initially and saved a lot of time!!

Sorry to go on but you can imagine myself and others in this situation thinking its all rather pointless, unless as you say you are rich or you are basically forced to sell you UK property in the middle of a slump.

I would never move my family out, nor quit my UK job until I had one in Canada....but until I get the PR I can't do that....so back to catch 22!

Has anyone else experienced this problem and if so any solutions or tips?
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Old Sep 27th 2009, 11:43 pm
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Default Re: Equity as part of funds?

Bali,

I also questioned this with an employee of the High Commission yesterday and he stated that equity does not count. I emailed our consultant this morning and this was his reply "You must use only liquid assets. However, you can borrow against your property or from family and friends, and place the funds in a bank account, which would then count as liquid assets."

Hope this helps - I have already phoned our mortgage advisor!!!!!!

Regards

Mark
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Old Sep 28th 2009, 12:07 am
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Default Re: Equity as part of funds?

Originally Posted by markbev
I emailed our consultant this morning and this was his reply "You must use only liquid assets. However, you can borrow against your property or from family and friends, and place the funds in a bank account, which would then count as liquid assets."
I'm slightly concerned that your consultant has told you that - as CIC very clearly state that the funds must NOT be borrowed!!

I'd double check it with him/her if I were you, CIC can ask you to prove where the money has come from and they do say it cannot be borrowed. Here is a link to their proof of funds page (note where it says 'You cannot borrow this money from another person'). http://www.cic.gc.ca/english/immigra...lled/funds.asp It also says they must be 'unencumbered', which would not be the case if you'd re-mortgaged your house.


Last edited by christmasoompa; Sep 28th 2009 at 12:10 am.
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Old Sep 28th 2009, 12:12 am
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Default Re: Equity as part of funds?

Markbev,

Thanks for the reply but...... its now really doing my head in!!

Many people have said that you CAN'T use money just popped in to the account as proof, that CHC or border people would want to track it back 3-6-9 months to a source other than a loan or someone just helping out and then taking it back....basically that its yours without paying it back.

So if your source at the HC says equity can't be used why is it accepted to a point at all?? Why not just state that it has to be liquid from the very start?
Sorry again to go on but so many conflicting viewpoints here.

If equity is not accepted at all why did I(and I would gather others) get a letter saying it was(with proof of ownership & mortgage statement) and why have many people said that a loan is un-acceptable but you have heard different?

I suppose we need clarity from someone who has hone through the process and got their Visa(without a job offer) to confirm exactly what they did and got asked for....until then we seem to have many conflicting answers to what should be a straight forward question.
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Old Sep 28th 2009, 3:05 am
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Default Re: Equity as part of funds?

We have recently been through the process. You can not borrow money to show liquid funds.

We had to send copies of mortgage statement and valuation of house. We also included bank statements showing liquid funds available. You must show that there are sufficient funds readily available to support you when you land.

The cic website clearly states that money can not be borrowed.

Hope this helps.

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Old Sep 28th 2009, 4:15 am
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Default Re: Equity as part of funds?

Originally Posted by UserXXXXXX
Markbev,

Thanks for the reply but...... its now really doing my head in!!

Many people have said that you CAN'T use money just popped in to the account as proof, that CHC or border people would want to track it back 3-6-9 months to a source other than a loan or someone just helping out and then taking it back....basically that its yours without paying it back.

So if your source at the HC says equity can't be used why is it accepted to a point at all?? Why not just state that it has to be liquid from the very start?
Sorry again to go on but so many conflicting viewpoints here.

If equity is not accepted at all why did I(and I would gather others) get a letter saying it was(with proof of ownership & mortgage statement) and why have many people said that a loan is un-acceptable but you have heard different?

I suppose we need clarity from someone who has hone through the process and got their Visa(without a job offer) to confirm exactly what they did and got asked for....until then we seem to have many conflicting answers to what should be a straight forward question.
Hi Rab
Not sure if this is possible for you , but I just put down the minium liquid/unencumbered cash amount required on my initial application if i remember it was about $14000 cad for 2 adults( which we have already) I didn't include any equity from the future sale of our property as didn't want to have get several valuations etc , I would always advise to put down the minium basic requirement for settlement funds ( does depend on your type of visa application of course ) .
regards
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Old Sep 28th 2009, 6:37 am
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Default Re: Equity as part of funds?

Poppit thanks for the reply....but it still leaves the question I have been asking if you & others have got the min "liquid" funds why on earth did you/do you have to send anything to do with your house and equity??

My point being the cash funds are enough why do they even bring equity in to the equation?
Unless they are going to let you use it to actually secure the visa(but not technically land in the country) why even have it....see my point?

Joinerboy all that is done, we are just waiting for the PPR to arrive, going through background checks at the moment.
Does this mean that before we get PPR(I assume as its been a month our medicals are fine) they will ask for the blasted "unencumbered funds" and not accept equity?

If so i am back to square one why in Gods name ever accept it in the first place?!!
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