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Car Loans For New Immigrants to Canada: 2 Minute Guide

Car Loans For New Immigrants to Canada: 2 Minute Guide

Newcomers to Canada will quickly realize that you need a car to get anywhere. Public transport is cheap and plentiful but there is so much open space here that a car is the only viable way to get around.


If you have recently arrived in the country, accessing car finance is going to be a challenge. But not an insurmountable challenge if you know the right people.

Car loans for new arrivals to Canada


Before you apply for a car loan, you need to cover the basics. You’re going to need some documentation before you even set foot inside a dealership.


You will need:


A Canadian drivers licence – You can drive in Canada using your existing licence depending on where it was issued. You will eventually need to apply for an Ontario Driver’s Licence though. That’s especially true if you want a car loan.


You’ll need 3 forms of ID, an abstract letter from your home licencing authority and any supporting documentation.


Canadian Citizenship card – To be able to apply for a car loan, you will also need a Canadian Citizenship card. This is the card given to you once you were given citizenship by the government. You will not be able to access finance through the usual means without it.


Once you have these two documents, you can apply for car insurance and vehicle registration which is essential for car ownership here in Canada.


If you want a car loan, you will also need proof of employment or proof of sufficient income to pay the loan.


Proof of employment or income – Car loans in Canada are the same as everywhere else. Offers are based on affordability and your credit score. As you won’t yet have a credit score here in Canada, you need to concentrate on affordability. You will need an employer offer letter or proof of permanent employment to qualify.


We work with people from all backgrounds, including new arrivals. We have lenders who will consider those with no credit or bad credit, those who are new to Canada and even those who have only just started their job.


As long as you have an offer letter or other proof of employment that includes your income and specifically mention the term of employment, you’re good to go.


You can apply for a car loan if you’re a seasonal worker, only just past the probation period or even if you have only been in work a day. As long as you can prove it, we can help.


If you're ready for a car loan in Southern Ontario, we'd love to help with that! simply fill in the form below to get started.

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