880 Walkers Line, Burlington, ON, L7N 2G2, Canada

How Can A Lendor Prove Income Amount In Ancaster?

How Can A Lendor Prove Income Amount In Ancaster?

If you’re planning to buy a car anytime soon, chances are you’re going to need an auto loan to help pay for it. One key criteria is affordability and demonstrating you can afford the loan by proving income. But how do lenders prove income amount for an Ancaster auto loan?


Lenders take a lot into account when assessing an auto loan application. One of the main things they look at is whether you can afford the repayments or not. Part of that will come down to income.


Prove Income Amount for Ancaster Auto Loans


Income, combined with your credit score and down payment can help lenders decide whether you can afford the loan or not.


As part of the process, you will be asked to provide evidence to prove your income and that you can afford repayments.


Employed borrowers


If you’re an employee, you will be asked for three months’ salary receipts or payslips. If your employer supports it, the lender may ask to contact your HR department directly to confirm that income.


For most Ancaster auto loans, salary receipts are enough. As long as they are ‘official’ slips, printed on company paper with a company header, they should be enough to prove income.


Self-employed borrowers


If you’re self-employed, you will need to provide a copy of your most recent tax return and bank statements. If you have an accountant, they can also provide notarized statements of your earnings if you ask them to.


You will also likely be asked for 3-6 months company bank statements to confirm your tax return and any evidence you have for your earnings.


If you have long term contracts with clients, they can also be used to support your Ancaster auto loan application.


Other borrowers


If you’re retired, on a pension, on disability or something else, you will likely be asked for the official paperwork that outlines your income. That could be social security statements, benefit letters, pension statements or whatever official paperwork you are provided.


You will also need 3-6 bank statements to support your income claims.


Depending on your situation, a lender may also request to see other paperwork to demonstrate your income. They will ask you for this at the time. If we are helping you with your Ancaster auto loan application, we’ll discuss it with you at the time.


Speed up your Ancaster auto loan application


If you’re planning on getting an auto loan in the near future, it makes sense to prepare your paperwork ahead of time. The more you have ready to go, the faster the application process will go.


Take copies of all the paperwork you use but always provide originals. Collect 3-6 months’ bank statements, salary slips and your most recent tax return if you’re self-employed.


Every piece of official paperwork you can find that supports your income can only help!


When you’re ready to apply for your auto loan, come visit the experts. We will use all our skill and experience to deliver the lowest possible Ancaster car loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.


Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!

Categories: Auto Loan

Tags: ,