COLLATERAL FOR JAPA!!!

According to the dictionary, collateral is typically defined as an asset that a borrower uses to secure a loan. Collateral can take the form of a physical asset, such as a land or house or it could be a financial asset, like investments and sometime full time employment that a borrower can use to guarantee loan repayment. Lenders require collateral for certain loans to minimize their risk or loss.

Same goes for secuing visa approval to most developed countries of the world such as Canada, U.K, U..S.A and the rest. Getting visa approval to enter into those countries either for study, visit or medical is not a fluke especially at this period as applicants would need to strongly proof to the visa issuing officer evidences of home ties that would make the applicant return to his/her home country on or before the expiration of the duration granted.

Without mincing words, many visa applicants do belief that "fat" bank account statement is the only paramount document they need to secure a visa approval forgetting that visa officers are also keenly interested in documents that buttress the economic status of the applicant and home ties that could facilitate his/her return on or before visa expiration.

Though, it's good to have good financial banking status. However, strong economic home tie is the major key factor often considered by visa issuing officers most especially for non-immigrant visa applicants like visit, study, medical and so on. The visa officers are more concerned about the economic tie of an applicant to his/her home country as strong home ties that'll pull him/her back after the tenure of visit or study visa granted.

Some of the evidences of home tie are marriage certificate, employment letter, certificate of investment, child/children birth certificate, bank fixed deposit statement of account, etc.

Meanwhile, the top secret is the use of valuation report on landed property(ties) to butress the applicant's finacial status and strong tie to the homeland.

A valuation report is a document prepared by a firm of registered Estate Surveyors & Valuers showing the current market value(s) in monetary worth of your landed property(ties), use of the property (either owner occupied or rented for income generation etc). So it can also be used as proof of additional source of income as the case may be.

Meanwhile, it's not enough to just submit landed property documents as most applicants do but documented evidence to show how the property(ties) will influence your return.

Though it is expected that an applicant should have a certain required amount that would cover his/her expenses during the stay, but a valuation report would "tell more" about the economic/financial status of the applicant in his/her home country that could appeal to the visa issuing officer in making a favourable decision about the applicant.

Let's take for example, a single applicant for applicant for study visa to Canada is expected to have a minimum amount equivalent to CAD36,000 (depending on the tuition fee to cover a year) and an applicant is able to meet that and also has property or properties worth equivalent of about CAD40,000 (Forty Thousand Canadian Dollars) or more, that tells more that such an applicant is doing well in his/her home country and would likely not be a liability to the visiting country. To be more practical, imagine someone that has say N30m in the bank, married with children and has property(ties) worth N35m or more. Don't be surprised such an applicant may be granted visa and someone that has say N60m on account without any proof of asset(s) or strong home tie denied. A visa officer would feel more comfortable to grant an applicant with strong home tie on the ground that he/she has investment/asset back home, wife and children that would make him/her to return after the duration granted.

So often times, money in the bank alone might not guarantee you but other support documents like your property/assets valuation report would do the magic.

No doubt you might have documents like purchase receipt, survey plan, deed of assignment or contract of sale on the property but those documents can not give the current market value of the property as land appreciate in value over time. So only valuation report will State that. Land you bought five years ago cannot be same value in the present year and possibly you've built on it.

Even for Canada Express Entry applicant, proof of fund is one of the basic requirements for permanent residence applications. Applicants need to provide to Canada Immigration & Citizenship an evidence of enough mandatory funds to support oneself and any accompanying family members when landed in Canada. This is because the government of Canada will not provide any financial support for new immigrants and therefore need to be sure the new immigrant will be able to support him/herself and his/her family members and same goes for study, either in the United Kingdom or Canada.

The amount required depends on the family size and can vary from time to time and for study visa depends on the institution. Meanwhile, at the time of putting in your application you'll need to show that you have at least the required amount. However, you can also submit a document that shows that you have asset that could be liquidated to cash if granted for your application to be processed.

Now you may be wondering what type of funds you can use and what type of proof is required. Well, there are options which we shall quickly dwell on into details:

SAVINGS: If you have savings which is equivalent or exceed the required amount, then your bank statement (not less than 3months) is a good proof of funds and if your money is split between several banks, you'll need to provide details of each to add up to the required amount or exceed if you have it.

REAL ESTATE: This is what many are not aware of that money in property is probably the most widely used proof or source of fund. It is a known fact that people sell property/ties owned in their home country before landing in canada or relocating to anywhere else and will use the proceed or equity to establish themselves after relocating and if not for permanent residence, it's a kind of high assuring factor that the applicant shall return to his/her home country upon completion of study or visit.

The immigration office appreciate the fact that you may not have sold the property at the point you're required to supply the information/proof and has made allowances for that. Therefore, all you need do is to get a firm of Certified Estate Surveyors and Valuers that is "skilled" in writting this kind of report (cos some basic information that are to be included) to value the property and give a report stating opinion of the current market value of the property , such valuation report MUST be on the firm letter head, duly stamped, sealed and signed. The immigration body can then see how much equity you have on the valuation report.

If the property is on mortgage, you'll need to submit a mortgage statement from your lender showing how much money is owned on the property, then you submit a valuation report along with it to be able to see how much equity available to you on the property. It is assumed that the property would have been sold and the money in your account before landing or relocating finally.

Meanwhile, if the property is an investment property, a rental valuation report can be submitted along with your application to proof/buttress your additional source of income. Therefore, a valuation report is not just a document but a very useful one that could facilitate your visa approval.


Written By:
Akintayo Akinlolu