Most Canadian owner-operators start by leasing on to a carrier. That’s also what lenders prefer to see, because a lease-on agreement shows guaranteed freight and an established safety record behind you. Here’s how to put together a deal for your first truck.
Lease on or your own authority?
| Lease on to a carrier | Your own authority | |
|---|---|---|
| Registrations | Carrier’s NSC/CVOR | Your own NSC/CVOR, IRP, IFTA, insurance |
| Freight | Supplied by the carrier | You find your own |
| What lenders ask for | Lease-on agreement and settlements | Contracts, business plan, more down payment |
| Approval odds as a new owner-operator | Better | Harder |
How much down payment?
On a $120,000 used tractor at 11.5% over 60 months:
| Down payment | Monthly payment | Total interest |
|---|---|---|
| 20% ($24,000) | $2,111.29 | $30,677 |
| 30% ($36,000) | $1,847.38 | $26,843 |
Lenders often want 20–30% from first-time owner-operators. The extra 10% also cuts the monthly payment, which helps in slow weeks.
If your credit isn’t great
- Pull your Equifax and TransUnion reports and dispute errors before applying.
- Offer a bigger down payment or a co-signer.
- Choose a newer, lower-kilometre truck that lenders value more.
- Bring a lease-on agreement with a carrier that has a good safety record.
- Expect a higher rate; refinance after 12–18 months of on-time payments if there’s no penalty.
Documents to prepare
- Photo ID and a second piece of ID
- AZ or Class 1 licence with air brakes, and a recent driver’s abstract
- Proof of two years’ driving experience (T4s or employer letters)
- Last two years of T1 Generals and Notices of Assessment
- 3–6 months of bank statements
- CRA Business Number and GST/HST number
- Lease-on agreement with your carrier
- Bill of sale with VIN and kilometres, plus a safety certificate for a used truck
- Insurance binder naming the lender as loss payee
- Proof of down payment
Full list: Canada truck financing documents checklist.
Frequently asked questions
Can I get truck financing with no down payment in Canada?
Established businesses with strong credit sometimes can. First-time owner-operators usually need 20% or more.
Does my T4 income count?
Yes. Lenders use your employment income history to show you can earn, especially when your business is new.
Should I buy new or used for my first truck?
Used keeps the payment lower, but lenders limit the truck’s age and kilometres. A 3–5 year old truck is often the sweet spot.
