What documents do I need for car loan approval?

To secure car loan approval in Canada, lenders require a comprehensive set of documents to verify your identity, financial stability, and the vehicle itself, reflecting heightened scrutiny in the 2025 market. You will primarily need valid government-issued photo identification, such as a Canadian driver's license or passport, which is crucial for identity verification and compliance with anti-money laundering regulations (FINTRAC). Robust proof of income is paramount; for employed individuals, this means recent pay stubs and potentially a Letter of Employment, while self-employed applicants will require more extensive documentation like recent Notices of Assessment (NOA) from the CRA, T1 General forms, business financial statements, and several months of bank statements to demonstrate consistent income and business viability. Lenders use this to assess your ability to comfortably repay the loan, considering your debt-to-income ratio. Additionally, proof of Canadian residency, often a recent utility bill or lease agreement, verifies your current address for communication and provincial registration. Evidence of valid automobile insurance, including collision and comprehensive coverage to protect the lender's collateral, is mandatory before vehicle release, though specific provincial requirements vary. Finally, details of the vehicle itself, typically through a Bill of Sale or the Vehicle Identification Number (VIN), are necessary for the lender to register their lien. Providing these documents accurately and promptly streamlines the approval process, demonstrating your reliability and readiness for this significant financial commitment.