Financing Your Next Business Move in New Brunswick After a Divorce
Navigating a major life change like a divorce is challenging enough without adding financial uncertainty. If you're looking to purchase a commercial van in New Brunswick to start or grow your business, you might be concerned about how your post-divorce credit profile will be viewed. This calculator is designed specifically for your situation. It automatically includes New Brunswick's 15% Harmonized Sales Tax (HST) and helps you understand the numbers for a 96-month loan term, providing clarity as you move forward.
How This Calculator Works
Our tool simplifies the process of estimating your payments by focusing on the key factors for your specific scenario:
- Vehicle Price: Enter the sticker price of the commercial van you're considering.
- Down Payment/Trade-in: Input any cash down or the value of your trade-in. This amount reduces the total loan principal.
- Interest Rate: Your credit score post-divorce will be the biggest factor here. We provide realistic estimates below, but your actual rate may vary.
- New Brunswick HST (15%): We automatically calculate and add the 15% HST to the vehicle price before factoring in your down payment, giving you a true picture of the total amount you'll need to finance.
Understanding Your Approval Odds with a Post-Divorce Credit Profile
Lenders understand that a divorce can temporarily disrupt finances. They often look more favourably on a credit score drop due to a one-time life event versus a long history of missed payments. The key is demonstrating stability now.
- Strong (680+ Credit Score): If your credit remains strong, you'll likely have access to prime rates from major banks and credit unions. Your approval odds are very high, and you can focus on negotiating the best rate.
- Fair (600-679 Credit Score): This is a common range after a divorce due to joint account closures or temporary income shifts. You have good approval odds with a variety of lenders, including specialized non-prime lenders who understand your situation. They will focus heavily on your current, stable income. For those running their own delivery or trade business, it's crucial to have clear documentation. To learn more about leveraging your business activity, see our guide: Your Deliveries Are Your Credit. Get the Car.
- Building (Below 600 Credit Score): Approval is still very possible, but it requires the right lender. Lenders in this space will want to see consistent income post-divorce and may require a larger down payment or a co-signer. The focus is on your ability to pay *now*, not your past circumstances. If you've been through other credit events, lenders are still willing to work with you. For a related perspective, check out Your Consumer Proposal? We Don't Judge Your Drive.
Example Commercial Van Payments in New Brunswick (96-Month Term)
Here are some data-driven examples to help you budget. Note how the 15% NB HST impacts the total financed amount.
| Vehicle Price | Price with 15% HST | Interest Rate (Example) | Estimated Monthly Payment |
|---|---|---|---|
| $25,000 | $28,750 | 7.99% | $400 |
| $40,000 | $46,000 | 9.99% | $685 |
| $55,000 | $63,250 | 12.99% | $1,035 |
*Payments are estimates. Your actual rate and payment will depend on your specific credit profile and lender approval.
The 96-Month Loan: A Tool for Business Cash Flow
Choosing a 96-month (8-year) term for a commercial van is a strategic decision. The primary benefit is a lower monthly payment, which can significantly improve your business's monthly cash flow. This frees up capital for fuel, insurance, tools, and other operating expenses. However, be aware that a longer term means you will pay more in total interest over the life of the loan. Ensure the vehicle's durability matches the long-term financing plan. For many self-employed individuals, proving income is the first step. If you're in this boat, our article can help: Self-Employed? Your Bank Statement is Our 'Income Proof'.
Frequently Asked Questions
How does a divorce specifically affect my ability to get a commercial van loan in NB?
A divorce can impact your credit score if joint debts were mishandled or if your debt-to-income ratio changed. Lenders in New Brunswick will focus on your individual income and credit history post-separation. They want to see that you have a stable, independent income sufficient to cover the new loan payment and your other obligations. A clear separation agreement and consistent pay stubs or business bank statements are your strongest assets.
Is a 96-month loan a good idea for a work vehicle?
It can be a very good idea if cash flow is your top priority. For a business, a lower monthly payment means more working capital. However, you'll pay more interest over time, and you risk being in a negative equity position (owing more than the van is worth) for a longer period. It's best for durable, high-quality vans that you intend to keep for the full term.
Do I need a down payment for a commercial van with a post-divorce credit score?
While $0 down payment loans are possible, a down payment is highly recommended, especially if your credit score is below 650. A down payment of 10-20% reduces the lender's risk, which can lead to a higher chance of approval and a better interest rate. It also lowers your monthly payment and reduces the total interest you'll pay.
What documents are needed to prove income if I'm self-employed?
If you're self-employed and need a commercial van, lenders will typically ask for 3-6 months of business bank statements to show consistent cash flow. They may also request your most recent Notice of Assessment (NOA) from the CRA and articles of incorporation if your business is registered. The key is to paint a clear picture of reliable business income.
How is the 15% HST calculated on a used commercial van in New Brunswick?
In New Brunswick, the 15% HST applies to vehicles purchased from a dealership, whether they are new or used. The tax is calculated on the final sale price of the vehicle. For example, if a used van is priced at $30,000, the HST would be $4,500 ($30,000 x 0.15), making the total before financing $34,500. This is different from a private sale, which is exempt from HST but subject to a provincial motor vehicle tax.
