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All Documents you Need when Buying a Car in Ontario

All Documents you Need when Buying a Car in Ontario

All Documents you Need when Buying a Car in Ontario

 

As with a loan application, there are necessary documents you need when buying a car in Ontario.

 

Offering all the required information and a good credit score will increase your chances of securing a car loan.

 

Overall, lenders need the assuredness that you're able to pay your debt when the time comes. One thing to remember is that the requirements differ depending on the lender.

 

But generally, there are some typically essential documents required during the car loan process.

 

This article will cover all the important documents you need when buying a car in Ontario.

 

Proof of Identification

 

 

We all have a means of identification for reference purposes. In various parts of the country, like the US, citizens are encouraged to move around with a valid ID card. When applying for a car loan, lenders will undoubtedly request legal proof of identity.

 

A driver's license, international passport, a government-licensed ID or birth certificate will suffice as proof of identity.

 

You want to ensure that every piece of information on this means of identification is valid.

 

Some lenders take extra steps to validate your identity through external contact. As we mentioned earlier, reliability is vital so lenders can lay their hands on every crucial piece of information about borrowers.

 

Proof of Residence

 

Your home address is another detail a lender will need to submit for your car loan application.

 

In this case, a utility bill, power bill or any valid document that contains your home address will be enough proof.

 

Proof of Income

 

 

Proof of income acts as a guarantee for lenders that you have an available means of income to repay should your loan get approved.

 

They compare your financial income, employment status and assets with the interest rates on the car loan to determine if you would be able to pay it back. Therefore, you need copies of your previous pay slips that cover your salary payments.

 

Ensure the payment details show your paid income of at least six months up until the loan application period.

 

You can request a bank statement from your bank as proof of income to show the lenders. For self-employed borrowers, lenders often ask evidence of tax returns.

 

They will use this to gauge your business income hence your ability to repay the loans.

 

Proof of Insurance

 

insurance companies

 

Most countries enforce their citizens to have car insurance. Therefore, your lenders will expect you to have a copy of pre-purchased car insurance attached to your other documents.

 

Credit History

 

Source: National Foundation for Credit Counselling

 

Your credit history shows your previous transactions, past loan payments, and other financial status or details. In this case, you do not need to bring any physical documents. However, lenders will consider and review your credit history, so note that.

 

Your payment history is one of the most significant factors that impact your credit score by 35%. Therefore, a poor credit history hampers your chances of securing a car loan.

 

Vehicle Information

 

This aspect is more applicable if you are in for a used car loan. Your lender will be interested in the vehicle you want to purchase and all the necessary information about it. Some of the information includes:

 

  • Vehicle's number plate
  • Model, price and company product
  • Original Owner
  • Vehicle ID Number

 

These are all the documents you need when buying a car in Ontario! Whether you are in for a used car or a new car, you need to provide certain things. Knowing all the essential documents for your car loan application will prevent any challenges you will likely face during the loan process.

 

We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP! 

 

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