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

For self-employed individuals in Newfoundland and Labrador seeking a car loan, lenders require robust documentation to verify income stability and repayment capacity, as this demographic is often perceived as higher risk due to variable income streams. You will typically need to provide your last two to three years of personal (T1 General) or corporate (T2) tax returns, along with corresponding Notices of Assessment (NOAs) from the CRA, which confirm your declared income has been assessed. Additionally, lenders will request three to six months of bank statements for both personal and business accounts to demonstrate consistent cash flow, proof of regular deposits, and responsible financial management. In the current 2025 market, with potentially tighter lending standards and higher interest rates, presenting a comprehensive and clear financial picture is even more crucial. This detailed financial disclosure is essential because it allows lenders to accurately assess your net income after deductions, mitigate perceived risk associated with self-employment, and ultimately determine your eligibility, interest rate, and loan terms. Being well-prepared with these documents can significantly improve your chances of securing competitive financing, rather than facing higher rates, larger down payments, or more restrictive conditions.