Financing with Non-Traditional Income

A guide to getting approved using EI, disability, pension, or self-employment income.

When people think of auto financing, they often assume you need a standard 9-to-5 job with regular pay stubs to get approved. However, the lending landscape has evolved significantly. Today, many specialized lenders recognize that a steady income can come from a variety of sources.

What Counts as Non-Traditional Income?

Lenders are primarily looking for consistency and reliability. As long as you can prove that you receive a steady stream of income, you have options. Common types of non-traditional income include:

• Self-Employment / Freelance: Income from your own business or gig work.
• Government Assistance: Including ODSP, AISH, or other provincial disability programs.
• Pensions: CPP, OAS, or private pension plans.
• Employment Insurance (EI): In some cases, seasonal workers on EI can still secure financing.
• Child Tax Benefit (CCB): Often accepted as supplementary income.

How to Prove Your Income

Because you don't have standard pay stubs, you'll need to provide alternative documentation to satisfy the lender. Here is what you should prepare:

• Bank Statements: The most common way to prove non-traditional income is by providing 3 to 6 months of bank statements showing consistent deposits into your account.
• Notice of Assessment (NOA): If you are self-employed, lenders will often look at your NOA from the CRA for the past two years to verify your declared income.
• Award Letters: If you receive disability or pension income, official letters detailing your monthly benefit amount are usually required.

Working with the Right Dealership

Not all dealerships have access to lenders who understand non-traditional income. Traditional banks often have rigid criteria that automatically reject these applications. That's why it's crucial to work with a financing specialist who has relationships with specialized lenders.

At Dream Catcher Financing, we have a vast network of lenders who specialize in unique financial situations. We know exactly how to present your application to get you the approval you deserve.