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Can you get a car loan while receiving a disability pension in Waterdown?

Can you get a car loan while receiving a disability pension in Waterdown?

If you are on a disability pension and need a vehicle, there are options available. If this is your first time trying to secure financing for a new automobile in a post-pandemic world, don’t worry.

Our Waterdown auto loans team are going to give you the information needed to make the right decision.

What type of disability pension are you receiving?

There are government and private disability pensions available, and how lenders underwrite loans is impacted by the type of pension.

For example, if you are receiving a government disability pension, it counts as income, but the lender is well aware that should you not repay the loan, the lender is not able to go after your pension and garnish it for payment.

Generally speaking, the same is true for private disability pensions, but any type of government pension cannot be garnished by unsecured creditors.

Do you have any other sources of income besides the disability pension?

Lenders will consider all sources of income from rental, and royalties on an invention.

As long as the income is declared on your income tax and you can show proof that the income belongs to you, it can be factored into your maximum debt-to-income ratio.

If you and your spouse both have pensions, your income can be joined together, which helps you qualify for a larger car loan.

Reviewing your credit profile

Something that you will need to do is look at your credit profile when trying to find a suitable Waterdown car loan.

If you have a high income, but your credit score is below 600, you are going to end up paying a premium just to secure a car loan.

Lenders look at credit reports issued by TransUnion and Equifax when trying to make a determination on whether to approve the car loan.

You should always check your credit score at least once a month, so you know where you stand and can deal with any issues before they become real problems.

If you have credit problems, do not spend your money on credit rebuilding programs being sold online.

These programs are great at taking your money but won’t give you the desired results. It takes time to build a great credit score; there are no shortcuts, and those who claim they know shortcuts are being careless with the truth.

How to get approved for a car loan in Waterdown when you are on a disability pension

This is not something you should try to do by yourself, even though the Internet has websites that say everyone is approved.

It would be smart to contact your local car dealership and discuss your situation with them.

The dealership will know which lenders accept disability pensions as income and which do not.

The same dealership will also discuss your needs with the lender and make sure you are getting a fair deal.

Now that you know how to get a car loan with a disability pension, why not contact the dealership right now and start test-driving cars in its inventory?

If you need help or advice on anything to do with auto loans in Waterdown, contact Car Nation Canada today, we can help!

Categories: Car News