Do Dealerships & or Banks check with the Canada Revenue Agency for deciding car loans?
My little brother just got a job, he has decent credit but has only received his first pay check. He wants to buy a used car, and needs a loan and I'm curious if lenders just check his pay stub & employer or if they go all the way to the C.R.A. I ask cause he was asked his annual income but he hasn't worked that long yet so they probably don't have a record of that. If they do check with the CRA how will that affect him?
(FYI I live in the city, no car just use the subway & TTC so I'm not the most knowledgeable about these things...)
- bw022Lv 79 years agoFavorite Answer
No. CRA's information is confidential and protected by law. Even other government agencies can't get access to it without your permission or a court order. There are a few exceptions, such as CRA forwarding your name and address to Elections Canada if you check that box on your income tax returns and when you sign up for a provincial health care plan, the provinces can make a request to verify your income.
That said, when you apply for a loan, a dealership or bank can always just ask you for one of your pay cheque stubs, a letter of assessment from CRA, or the contact information for your employer and just call your boss. Any can be used as proof of your income and the later two options will also give you an idea how long you have been employed for. Finally, a bank can usually get a good idea of your employment income from looking at the deposits from your accounts.
- Anonymous9 years ago
Dealerships and banks only base their decision on recent credit history and length of time at their current employment. They like to see stability.