If you receive Assured Income for the Severely Handicapped (AISH) in Alberta, you might wonder if getting a car loan is even possible. The short answer is yes, it's definitely possible. A vehicle is often a necessity, not a luxury, and lenders understand that.

An 'AISH car loan' isn't a special type of loan. It's simply a standard auto loan where your AISH payments are considered your primary source of income. Lenders who work with various income types know how to verify and use this information for your application.

Can You Really Get a Car Loan on AISH?

Yes. In Canada, lenders are prohibited from discriminating based on disability or source of income, as long as that income is legal and consistent. AISH is a stable, government-backed income source, which many lenders view favourably. They are less concerned with where the money comes from and more concerned with whether you can afford the monthly payments.

The key is to demonstrate that you have enough income after your other essential expenses are paid to comfortably handle a car payment, insurance, and fuel.

What Lenders Look for When Your Income is AISH

When you apply for a car loan, lenders will assess a few key things to determine your eligibility and the interest rate they can offer. Here's what they focus on:

• Proof of Income: You'll need to provide your AISH statements to show the consistent amount you receive each month. If you have any other income (like part-time work or other benefits), be sure to include that as well.
• Debt-to-Income Ratio: Lenders will look at your total monthly debt payments (rent, credit cards, other loans) and compare them to your total monthly income. A lower ratio shows you have more room in your budget for a car payment.
• Credit History: Your credit score and report are very important. A history of paying bills on time will significantly help your chances. Having AISH doesn't negatively affect your credit score; only your borrowing and repayment habits do.
• Down Payment: A down payment is one of the most powerful tools you have. It reduces the amount you need to borrow, which lowers your monthly payments and shows the lender you are financially committed. Even a small down payment of $500 or $1,000 can make a big difference.

Steps to Improve Your Approval Chances

Being on a fixed income means you need to be strategic. Taking these steps before you start shopping can put you in a much stronger position.

• Check Your Credit Report: Get a free copy of your credit report from Equifax or TransUnion. Check for any errors that might be lowering your score and get them corrected.
• Save for a Down Payment: As mentioned, this is crucial. The more you can put down, the better your terms will be.
• Create a Budget: Know exactly how much you can afford. Factor in not just the car payment, but also insurance, gas, and potential maintenance. Be realistic and don't stretch yourself too thin.
• Consider a Co-signer: If your credit is weak, a co-signer with strong credit and income can help you get approved. Just remember, a co-signer is legally responsible for the loan if you can't pay, so it's a big favour to ask of a trusted friend or family member.
• Get Pre-Approved: Getting pre-approved for a loan before you visit a dealership gives you a clear budget to work with and separates the financing from the vehicle negotiation.

Does a Car Affect Your AISH Benefits?

This is a critical question. For the AISH program, a primary vehicle is typically considered an 'exempt asset', meaning it does not count toward the asset limit that could affect your eligibility. However, rules can be specific and may change.

It is always best to contact your AISH case worker directly to confirm how a vehicle purchase or loan will impact your specific situation. Getting the information straight from the source ensures there are no surprises.

Ultimately, getting a car loan while on AISH is about financial stability and planning. By understanding what lenders look for and preparing your finances, you can get behind the wheel of a reliable vehicle that gives you the freedom and independence you need.