Legal status in Canada
Newcomers to Canada need legal status, like a work permit, study permit, or permanent residency, to get a car loan.
Establishing credit history
Get a Canadian bank account and credit card to establish a positive credit history in Canada.
Lenders assess the borrower's creditworthiness, including their credit score, debt-to-income ratio, and payment history.
Employment and income stability
Newcomers need to show proof of employment, like pay stubs or income tax returns, to get a loan and prove they can repay it.
Vehicle down payments vary based on cost and lender policies. Some dealerships offer no down payment options.
Loan amount and terms
Lenders consider income, credit history, down payment, and vehicle value when determining loan amounts.
Getting pre-approved for a car loan is helpful for newcomers. It helps them understand their qualified loan amount before shopping.
To apply for a car loan, newcomers must provide ID, proof of address, and proof of income.
Co-signer or guarantor
A 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.
Financial professionals can assist with individual financial situations and loan applications.