Monthly Archives: September 2013

Auto Loan Calgary Proof of Income(POI)

Proof of Income for a car loan Calgary may be a condition on approval. Here are some examples of Proof of Income (POI).

Regular Full Time Employee- This POI will be in form of a paystub supplied by your employer. This paystub will show your current earnings, payment of government taxes, and Year to Date (YTD). The current earnings and the YTD are very important to the lender when verifying your earnings and employment details. When the YTD is not shown on the paystub the lender will have a difficult time in calculating time on job and monthly earnings. When this is the case an Employment letter may be requested and a call to your employer may be needed in order to verify details.

Sub Contracted Employee- This is when an employee is paid with no taxes taken from his or her cheque. Sub Contracted employees are usually a SOLE PROPRIETER business. This is when an employee does not officially have a corporation, but instead, choose to do their own taxes and submit their own taxes to the government. In this case the lender will usually ask for 6 months bank statements, Notice of Assessment (NOA), Copy of taxes, Statement of business activities, or Invoices from the client. This type of employment can be difficult to prove earnings as the lenders will want to know that no money is owed to the government. For Sub-Contracted employees I would suggest keeping records of every cheque received by your employer and all records of taxes and submissions to the government. I would also suggest looking into a book keeper to assist in month to month earnings and expenses.

Self Employed-  This type of employee will be an Employee of their own company, either by payroll, or by shareholder loan. This type of employee will get paid by his or herself, from their own company. For each job they do, they will invoice the company, and that company will issue a cheque to the Self Employed company. The Self Employed applicant will then draw money from his or her own company. For POI a lender will usually ask for 2 years NOA (Notice of Assessment). When this person is not able to provide 2 years NOA the lender might ask for bank statements to support earnings. They may also ask for Articles of Incorporation and a copy of Corporation Certificate. These documents will provide the lender with information showing the directors of the company. The lender may also ask for Statement of Business activities prepared by an accountant.

It is important to know what type of employee you are before applying for a car loan Calgary


Just my 2 Cents