Self Employed Canadian
Auto Financing
When you apply for an
auto loan, having your documents in order can help you get approved
for your loan quickly. Usually, lenders are looking for proof that
you are a good credit customer and will be able to repay the loan. This
information, along with your credit report and score, will determine the interest rate you are charged.
Some lenders may ask for particular documents that others don't
require, so it's worth
applying online
and getting pre-approved instead of running around from dealership
to dealership or bank to bank only to be discouraged. To get you started, here's a checklist of documents most
lenders want to see:
-
Proof of income: If you are Self
Employed you most likely do not
have pay stubs to show for proof
of income, lenders often use tax
returns to determine gross
income but sometimes they will
accept two months of bank
statements to prove money is
going through the bank account.
-
Credit and banking history: The
lender will want to know about
any other loans or financial
obligations you have
outstanding, and how you've
handled debt payments in the
past based on your credit report
- usually from Equifax or
TransUnion.
-
Proof of residence: personalized
mail you have received within
the last month from the phone
company, utility company or
other regular bills you receive.
-
Proof of insurance: You must
provide proof that the insurance
company knows about your newly
purchased car and that the car
is adequately insured.
