Why it can feel harder, and why it doesn't have to be
Lenders like a pay stub that looks the same every two weeks. If you farm, work rotation in the oilfield, run your own trade, drive for a delivery app or work seasonal construction, your income doesn't look like that, even when it's good. The fix is mostly paperwork: showing a lender, in a way they can check, what you really earn over a year.
What to bring
| Your situation | What lenders usually want |
|---|---|
| Self-employed or incorporated | Your last two years of tax returns and Notices of Assessment from the CRA, plus recent business bank statements |
| Farmer | Tax returns showing farm income, and statements that show when your income arrives through the year |
| Rotation or oilfield | Pay stubs and a letter from your employer confirming your schedule and rate |
| Seasonal worker | Two years of tax returns showing the pattern repeats, and when you're back at work |
| Gig or app work | Tax returns and the app's earnings statements, plus bank statements showing the deposits |
Lenders mostly go by the income you reported for tax. If you write off a lot of expenses, your income on paper may be lower than what you live on, and that's the number they'll use.
What helps your approval
- Two years of steady or growing income on your tax returns.
- No tax owing to the CRA, or a payment arrangement you're keeping up with.
- A down payment. It lowers the lender's risk and your payment.
- Payments timed to your income. Some lenders offer payment schedules that suit seasonal income. Ask.
- The right vehicle. If the truck is for work, keep the price in line with what the business can carry.
Personal loan or business financing?
If the vehicle is mainly for your business, especially if you're incorporated, financing it through the business may make sense for tax reasons. That's a question for your accountant, not a lender. For most sole proprietors and gig workers, a personal car loan is simpler.
Just started out on your own?
With less than two years of self-employment, fewer lenders will use your business income. Options include a larger down payment, a co-signer, or showing your previous employment in the same line of work. Lenders that specialize in rebuilding or alternative income are more flexible, at a higher rate.
How Brenden helps
Brenden works with farmers, tradespeople, rotation workers and self-employed people around Saskatoon. Tell him how you earn your money and he'll tell you which lenders will read your income properly and exactly what paperwork to gather, before anyone pulls your credit.