Car Loans for Alberta Public Sector Employees

A permanent job is the clearest picture: pay you can show, with no end date. The documents are the usual ones.

Public employers define the term. Alberta’s Public Service Employment Regulation calls a permanent position one established for an indefinite period of continuous employment. A health-care collective agreement describes a regular employee as one who works full-time or part-time on regularly scheduled shifts of a continuing nature.

Lender lists name a recent pay stub, a letter from your employer, and a T4 or other tax document with your Notice of Assessment. Some lenders ask for one proof of employment, and others ask for two sources of income verification. The Canada Revenue Agency says employment income is usually shown in box 14 of your T4.

A permanent job does not set your rate. Your credit score mostly does (4.99%–29.9% APR depending on your file). For how pay and score work together, read good income, bad credit car loans.

It can. Lenders set their own rules on time on the job, and every lender decides each file.

Public employers use probation. Alberta’s Public Service Employment Regulation says a person starting in a permanent or a temporary position in the public service serves a probationary period, and defines it as the time during which an employee’s suitability is assessed. In the Alberta Public Service, once you have served the required probation you do not serve another when you are appointed or promoted to another position, as long as there is no break in service.

One Canadian auto lender publishes a minimum of three months on the job, with exceptions when you take a new job in the same or a similar field after at least a year at your last one. Some lenders also ask your employer about job probation.

Check your offer letter or collective agreement for your own probation end date, and ask your employer what a letter can say. For how a brand-new job looks to a lender, read how lenders handle a new job or probation.

A temporary job has an end date, so the question a lender asks is whether your income will continue.

Alberta’s Public Service Employment Regulation calls a temporary position one established for a limited period of continuous employment. A health-care collective agreement describes a temporary employee as one hired on a temporary basis for a full-time or part-time position, for example to replace an employee on an approved leave.

One bank says that if you are a contracted employee, more information than a T4 or a pay stub may be requested. Bring a letter from your employer that names your position, says it is a temporary or term position and gives the end date. If your term has been renewed before, say so. Employers use different labels for the same kinds of job, so use the words on your own offer letter. If you work in a school, our page for teachers and educational assistants covers ten- and twelve-month pay and the teaching contract types.

Casual pay moves with the hours you are given, so one pay stub can mislead. A longer stretch shows the pattern.

In the Alberta Public Service, a wage employee is a person hired for casual employment and is paid an hourly rate. A health-care collective agreement describes a casual employee as one who works on a call-in basis and is not regularly scheduled. The Government of Alberta describes casual work as working only when the job is required for a short period of time, and notes that it can mean uncertain hours and income.

Here is why that matters. One example buyer, three recent months of pay ($3,100, $4,700 and $3,900), one car and one payment. The card shows the three-month average.

The same payment is about 17% of the lowest month ($3,100) and about 14% of the three-month average ($3,900). A single stub can make the payment look small or large, which is why lenders ask for more than one.

Lenders ask for different stretches. One bank lists your last two years of tax returns with your Notice of Assessment for variable income, such as overtime or commission. A T4 adds up the year. Tell us what you have.

• Government photo ID.
• Your last two pay stubs.
• Your latest T4 or Notice of Assessment.
• A letter from your employer that names your status (permanent, temporary or casual), your position, your start date, how you are paid and any probation end date.
• If you are new, your offer letter or contract. If you work casual, several months of pay stubs or bank statements.
• A void cheque.

Some lenders contact the employer by phone or email instead of asking for a letter, so tell your HR contact to expect a call. The quickest start is the online application. We review every application and call you back. Or call us at (825) 736-4438. If you serve in the Canadian Armed Forces, see military car financing in Alberta.