Express Entry - Are loans subtracted from Proof of Funds ?

In this video, Mark Holthe addresses the common question of whether IRCC subtracts loan amounts from an applicant's proof of funds for Canadian immigration. He clarifies that IRCC does not directly subtract loan amounts from the required settlement funds. However, he emphasizes that loans and other financial obligations are considered in a holistic assessment of an applicant's financial stability. He advises clients to aim to cover their debts in addition to the minimum settlement funds required by IRCC, suggesting a six-month buffer for debt servicing. He also recommends providing a letter of explanation to officers detailing how debts will be managed.