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In NB, what should I know about self-employed borrowers for car loans?
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Car Loan Glossary • nb

In NB, what should I know about self-employed borrowers for car loans?

For self-employed borrowers seeking car loans in New Brunswick, lenders require a robust demonstration of income stability and verifiable earnings, often looking for a minimum of two to three years of consistent self-employment history. You'll typically need to provide your personal T1 General tax returns (or T2 for incorporated businesses) along with corresponding Notices of Assessment (NOAs) from the CRA for the past two to three years. Comprehensive business and personal bank statements, usually covering 6-12 months, are also essential to illustrate consistent cash flow and income patterns. Lenders meticulously review gross income versus net taxable income, as tax write-offs common for self-employed individuals can significantly reduce your declared income, impacting your perceived affordability. Given the anticipated tighter lending conditions in 2025 across Canada, self-employed applicants in NB may face higher interest rates, be required to make a larger down payment, or need a co-signer to mitigate the lender's perceived risk. Understanding these stringent requirements and preparing thorough documentation is crucial to demonstrate your financial strength and secure the most favourable financing terms available.

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