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Car Loan as a Newcomer to Canada in Milton

Car Loan as a Newcomer to Canada in Milton

Canada is an exceptionally popular place to emigrate to. It’s huge, friendly, welcoming to newcomers and a land full of opportunity for those who work hard. It’s also a place where you’ll need a car to get anywhere. That’s the subject of today’s post. Our Milton auto loans team outlines how to get a car loan as a newcomer to Canada.


Build a credit history


The first challenge you’ll face trying to finance a car loan as a newcomer to Canada is not having a credit score. Any that you built in your home country doesn’t count as soon as you leave, so you have to start over.


We recommend doing this right away.


Get a secured credit card or credit card from your bank if it has a presence in Canada. Then use that card regularly. Set up automatic payments and begin getting entries onto your new credit report.


Get a phone contract that makes entries on your credit report, use a landlord or utility company that does the same if you can.


Get some income


Chances are, you came to Canada with a job offer or place at a university. Both are good ways to build a new life and can help with getting some income.


You’ll need to pay your auto loan and will need a demonstrable income to do that. You’ll need 3-6 salary statements or wage stubs or be a Ph. D student. If you have a part time job alongside your studies, that will help too.


While the amount you earn is a factor, the regularity of that income is most important. As long as you can afford the loan on top of your other outgoings, you should be fine.


You will need to prove it though.


Save a down payment


If you didn’t have an amount set aside for a down payment on your arrival, now is a good time to begin saving. The more of a down payment you can put down, the easier you’ll find it to get an auto loan.


A down payment offsets some of the risk of lack of credit history and a low credit score. The more you can put down, the more likely you are to qualify for the loan.


There is no magic number but we would recommend a minimum of 20% as a newcomer to Canada.


Work with a reputable Milton auto loan provider


It helps to work with professionals when you’re applying for your first auto loan. We can help with your application, help you prepare the paperwork, outline your options, and make recommendations of who to work with.


We can also provide quotes from leading lenders and help submit your application when you’re ready to apply. If that wasn’t enough, we can also find you a great deal on a car too!


We will use all our skill and experience to deliver the lowest possible Milton auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.


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Categories: Auto Loan

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