Stipulations (Lender Conditions)

Stipulations, in the context of auto financing, are conditions set by the lender that must be satisfied for a loan to be fully approved or funded. Common “stips” include proof of income (such as pay stubs), proof of insurance, proof of residence, or references. Canadian dealership F&I managers collect and submit these documents to lenders. Stipulations help prevent fraud and ensure the borrower meets the lender’s requirements (for example, subprime lenders often have more stips like proof of a steady job or a certain income level). The loan is typically conditional until all stipulations are met, so timely handling of these ensures the deal can be completed and the vehicle delivered.