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How to get a car loan if you are a new Canadian

How to get a car loan if you are a new Canadian

Canada is a land of opportunity and immigrants have contributed much to the success of the true north strong and free.

If you are new to Canada and want to buy a car, our Waterdown auto loans team are going to provide insight on how to get a car loan without getting ripped off in the process.

You need a valid SIN to get a car loan

The first thing you will need to get a car loan in Waterdown is a social insurance number (SIN).

This should have been issued when you received your permanent residency and once your citizenship was approved, you would have received a permanent social insurance number.

This is a number used by the government for taxation purposes and also for identification. If you do not have a SIN, you cannot open a bank account or do anything credit-wise in Canada.

Reviewing your credit report

You will need to review your credit report to make sure there are no mistakes. Mistakes do happen from time to time, one of the most common is the wrong mailing address on your report.

You can dispute these errors by following the steps posted on TransUnion and Equifax’s respective websites.

Documenting your income

Canada uses a “trust but verify” approach when it comes to loan underwriting. Lenders are going to look at your credit score and your income when making a decision on whether they will approve your Waterdown car loan.

To prove your income, you will need to provide copies of your latest pay slips and bank accounts. The more information you are able to provide the lender, the greater your chances of getting the loan approved.

Sources of competitive auto loans in Waterdown

You may be tempted to apply for a car loan through your local bank. While this may be convenient, you could end up paying a substantially higher interest rate than what you would pay if you used our preferred approach.

The best source of competitive auto loans in Canada is by going to a car dealership in your area. These dealerships are going to have access to wholesale lenders from around Canada.

With interest rates at historic lows, you will be able to access interest rates that the average consumer cannot access online.

An added benefit of working with a local dealership is they have cars you can actually buy right away. There is a shortage of new and used cars for sale in Canada, this shortage is here to stay for a few years so you will need to be proactive if you want to buy a car.

During your discussions with the car dealership, if you are having any credit issues or questions, they will be able to help explain things to you. The same dealership can also help show you how to boost your credit score which reduces your overall cost of borrowing.

Now that you know how to get a car loan in Canada, you can reach out to your local dealership and discuss your options, you are going to feel amazing driving around in your new car but you must pick up the phone now.

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

Categories: Auto Loan

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