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

Self-employed borrowers in Saskatchewan, like across Canada, face stricter scrutiny for car loans due to the perceived variability of income and the common practice of maximizing tax write-offs. Lenders require robust documentation to accurately verify consistent income and assess repayment capacity, typically requesting the last two to three years of personal tax returns (T1 General) and corresponding Notices of Assessment (NOA) from the CRA. For incorporated businesses, corporate tax returns (T2) and detailed financial statements are also essential, alongside 6-12 months of business and personal bank statements to demonstrate stable cash flow. In the current 2025 market, characterized by higher interest rates and a more cautious lending environment, this heightened risk assessment often translates into less favourable terms for self-employed applicants. You should anticipate potentially higher interest rates, larger required down payments (often 10-20% or more), or the need for a co-signer with a strong, traditionally employed income history. This matters significantly because a perceived lack of income stability or incomplete documentation can directly impact your loan approval, the competitiveness of the terms offered, and ultimately the total cost and affordability of your vehicle in Saskatchewan. To improve your chances, meticulous record-keeping, a strong personal credit score, and a substantial down payment are highly recommended.