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

For self-employed borrowers in Nunavut, securing a car loan requires comprehensive documentation to demonstrate income stability and repayment capacity, as lenders typically view self-employment as carrying a higher risk profile than traditional salaried employment. You will generally need to provide at least two to three years of T1 General tax returns (or T2 for incorporated businesses) along with corresponding Notices of Assessment (NOAs) from the CRA to verify declared income and its consistency over time.

Beyond tax documents, lenders will often request recent business and personal bank statements (typically 3-6 months) to assess cash flow, demonstrate consistent revenue, and ensure sufficient funds for a down payment and monthly loan obligations. Depending on the lender and the complexity of your business, you might also be asked for financial statements, business registration documents, or a letter from your accountant confirming your income and business viability.

Why this matters: In the current (2025) Canadian lending landscape, where credit markets remain somewhat cautious, lenders are particularly diligent in assessing risk. Providing robust, multi-year financial proof helps them confidently evaluate your ability to repay the loan, which can significantly impact your approval chances, the interest rate offered, and the required down payment. Thorough preparation with all necessary documents is key to securing the most favourable terms possible.