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How to get a Self Employed Car Loan in Ancaster with Ease

How to get a Self Employed Car Loan in Ancaster with Ease

Self-employed Canadians that need a car loan and don’t know where to turn for help are in the right place.

 

Our Ancaster car loans team are going to provide you with all of the information you need to get a great deal, but you need to move fast.

 

Interest rates are rising and will continue to rise as the Bank of Canada tries to slow inflation in Canada.

 

What is your company structure?

 

How your business is structured has a direct impact on what car loan options are available to you.

 

For example, suppose your business is incorporated, and you pay yourself a salary like a traditional rank and file employee.

 

In that case, the underwriting process for your car loan is very similar to what you would go through if you were working for someone else.

 

Where things get a bit more complex is when you are a sole proprietorship.

 

Most lenders in Canada are not set up to process loan applications for a sole proprietorship.

 

A common challenge that these lenders face is not being able to calculate the borrower's monthly income, which goes into the debt-to-income ratio.

 

The maximum DTI ratio that lenders will approve is 40%, but it can be difficult knowing what that is when the borrower does not have a fixed salary.

 

Some more progressive lenders will ask for the latest income tax assessment for the last two years and bank account statements for the last 6-12 months.

 

With this information, the lender should be able to project your average monthly income and use that to underwrite the car loan.

 

Applying for a self-employed car loan in Ancaster

 

Your credit score plays a vital role when applying for a self-employed car loan in Ancaster. Lenders are more cautious because the economy is experiencing pains from the pandemic and now the violence taking place in Europe.

 

To help reduce the risk of default, lenders are making it harder to get a car loan by raising the minimum credit score required for a car loan.

 

Right now, to get the most competitive terms, you need a credit score of 720, but that is the minimum score to access these low-interest rates.

 

If your credit score is below 720 and you are self-employed, the interest rates are going to be higher.

 

Where to get the most competitive self-employed car loans in Ancaster

 

If you want to access the most competitive self-employed car loans in Canada, you don’t have to go far; you just need to head on down to your local car dealership today.

 

The dealership will know what documentation you will need to submit to get approved for a car loan via the vast network of lenders that are available to the dealership.

 

The dealership will also speak with the lender to negotiate the most favorable terms possible.

 

When you take this avenue, you will have peace of mind knowing you can get approved for a self-employed car loan and pick the car best suited for your needs, thanks to the local dealership.

 

 

We’d love to help you find a self employed car loan in Ancaster. Simply fill in the form below and we’ll get back to you ASAP or see our selection of used cars at our Burlington dealership. 

 

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    Categories: Auto Loan

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