In QC, what should I know about income verification for car loans?

In Quebec, as across Canada, income verification for car loans is a critical step in a lender's due diligence process, particularly in the current (2025) market where credit conditions are tighter and responsible lending is paramount. For traditionally employed individuals, you should be prepared to provide your two to three most recent pay stubs, along with an employment letter confirming your position, start date, and annual salary. This allows lenders to accurately assess your consistent earning capacity and ensure the proposed loan payments are affordable, aligning with federal guidelines for consumer protection and risk mitigation.

For self-employed applicants in Quebec, the requirements are more extensive due to the variable nature of income. Expect to furnish your last two to three years of T1 General tax returns, corresponding Notices of Assessment (NOA) from the CRA, and several months of business bank statements. Lenders use these documents to establish a stable income history and verify the profitability of your business over time. Any additional income sources, such as pensions, disability benefits, or rental income, will also require official documentation.

Why this matters to you: Providing comprehensive and accurate income verification upfront is crucial for a smooth and swift approval process. It directly impacts the interest rate and terms you qualify for, as it demonstrates your ability to meet your financial obligations and reduces the perceived risk for the lender. In a competitive market like 2025, thorough documentation can be the difference between approval for favourable terms and a rejection, ensuring you secure a loan that is both affordable and sustainable.