🚗 The Ultimate Car Loan Guide for Canadians on Long-Term Disability (LTD)

Being on long-term disability doesn’t mean your life stops — or that you don’t deserve a reliable vehicle.

But if you’ve ever tried to get a car loan while receiving:

• Long-term disability benefits
• CPP-D
• Employer LTD
• Private insurance disability income

…you already know most banks treat you like you’re “unemployed.”

You’re not.

You’re income-verified — and lenders just need to be shown the right way.

This guide explains how.

🧾 What You’ll Need to Get Approved on Disability Income

You don’t need pay stubs.

You need proof that your income is stable and ongoing.

1️⃣ Your Disability Award Letter

This comes from:

• CPP Disability
• Manulife, Sun Life, Canada Life, or another insurer
• Your employer’s LTD provider

It shows:

• Your monthly benefit
• That it’s long-term or indefinite
• Your name and policy

This replaces a job letter.

2️⃣ Bank Statements

Most lenders will ask for 3–6 months of bank statements showing:

• Disability payments coming in
• No major unexplained cash gaps

If your income hits your account every month, lenders see stability.

3️⃣ Your Driver’s License & Insurance

You must be:

• Medically approved to drive
• Insured for the vehicle



If you can drive legally, lenders can finance you.

🧠 What Lenders Actually Care About

Banks don’t decline you for being disabled.

They decline when income looks temporary or uncertain.

They look at:

• Monthly disability income
• Whether it’s long-term or permanent
• Credit score
• Your total debt load
• Down payment (optional, but helpful)

Someone earning $2,200/month on LTD with clean bank statements is often stronger than someone with a shaky job.

⚠️ What to Watch Out For

❌ Being Sent to the Wrong Bank

Many dealers only use “job-based” lenders.

Dealerhop works with lenders that accept:

• CPP-D
• Employer LTD
• Private disability insurance

We send your application to lenders that actually say yes.

❌ Applying Too Many Times

Every hard credit check hurts.

Dealerhop submits one application and shops it properly behind the scenes.

❌ Choosing the Wrong Car

Some lenders don’t like:

• Very old vehicles
• High kilometres
• Salvage or rebuilt titles

Dealerhop shows you what you’re already approved for.

🧩 Tips & Tricks to Get Approved on Disability Income

✅ Make Sure Your Benefit Is Ongoing

If your award letter says:

“Indefinite”
or
“Long-term”

Your approval odds skyrocket.

✅ Keep Your Bank Account Clean

Try not to have:

• Repeated NSF fees
• Gambling sites
• Cash-advance spirals

Lenders use your statements to judge risk.

✅ A Small Down Payment Helps

$500–$2,000 can:

• Lower your interest rate
• Increase approval size
• Get better vehicles

$0 down is still possible — this just improves the deal.

✅ Don’t Hide Your Disability

Trying to claim “self-employed” instead of LTD gets you declined.

Disability income is accepted — it just has to be sent to the right lenders.

🚀 Why Canadians on Disability Use Dealerhop.com

Most banks see:

“Disability = risky”

Dealerhop sees:

“Disability = guaranteed income”

We work with:

• Banks that accept CPP-D
• Lenders that approve LTD income
• Dealers trained on disability approvals

You get:

• One application
• Real approvals
• Vehicles that fit your income
• $0 down options
• No humiliation
• No wasted dealership visits

You see what you qualify for before stepping into a dealership.

🏁 Get Back on the Road

Whether you’re on:

CPP Disability
Employer LTD
Private insurance
or long-term benefits…

👉 Dealerhop.com helps you get approved based on your real income, not your job title.

You don’t need to be “back to work” to get back to driving.