Legal status in CanadaNewcomers to Canada need legal status, like a work permit, study permit, or permanent residency, to get a car loan.
Establishing credit historyGet a Canadian bank account and credit card to establish a positive credit history in Canada.
Creditworthiness Lenders assess the borrower's creditworthiness, including their credit score, debt-to-income ratio, and payment history.
Employment and income stabilityNewcomers need to show proof of employment, like pay stubs or income tax returns, to get a loan and prove they can repay it.
Down PaymentVehicle down payments vary based on cost and lender policies. Some dealerships offer no down payment options.
Loan amount and termsLenders consider income, credit history, down payment, and vehicle value when determining loan amounts.
Pre-approval processGetting pre-approved for a car loan is helpful for newcomers. It helps them understand their qualified loan amount before shopping.
Documentation requirementsTo apply for a car loan, newcomers must provide ID, proof of address, and proof of income.
Co-signer or guarantorA co-signer or guarantor can help someone get a loan or improve their credit score by sharing responsibility for repayment.
Research and comparison To find the best loan terms, compare options from multiple lenders by considering interest rates, repayment terms, fees, and eligibility requirements.
Professional Advice Financial professionals can assist with individual financial situations and loan applications.