Seller's Security: For sellers, a POF letter guarantees that a potential buyer has the necessary funds (down payment + closing costs) readily available to complete the purchase. This minimizes the risk of the deal falling through due to a buyer lacking the financial resources.

Competitive Advantage for Buyers: In a competitive housing market, a POF letter strengthens a buyer's offer. It demonstrates seriousness and financial readiness compared to other potential buyers who may not have secured financing yet.

Government Requirement: Certain countries require proof of sufficient funds from immigrants to ensure they won't become a financial burden on the country's social welfare system.

Demonstrating Financial Stability: A POF letter showcases an immigrant's ability to support themselves financially in their new home country. This helps government officials assess the potential applicant's integration prospects.

Healthy Track Record: Maintain a solid history of responsible financial management. Banks are more likely to issue BCLs to companies with a proven ability to meet financial obligations.

Positive Bank Relationship: Develop a strong connection with your bank. Regularly communicate your financial situation and maintain healthy account activity.