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

For self-employed borrowers seeking car loans in Nova Scotia, lenders require comprehensive documentation to accurately assess income stability and creditworthiness, which is inherently more variable than traditional salaried employment. You should be prepared to provide at least two to three years of Canada Revenue Agency (CRA) Notices of Assessment (NOAs) and corresponding T1 General forms (for sole proprietors) or T2 Corporation Income Tax Returns (for incorporated individuals), along with detailed business and personal bank statements. Lenders scrutinize these documents to establish a consistent, verifiable net income history, often preferring a minimum of two to three years in business, as they focus on the income after deductions, not gross revenue.

In the current 2025 market, with interest rates remaining elevated across Canada, lenders in Nova Scotia are generally more risk-averse, which often translates to higher interest rates or larger down payment requirements for self-employed applicants due to perceived income variability. A strong personal credit score remains paramount to mitigate these factors and demonstrate overall financial responsibility. Understanding these stringent requirements is crucial for self-employed individuals in NS, as it allows them to proactively gather necessary financial records and set realistic expectations for loan approval terms, ultimately streamlining the application process.