Requirements
for a Car Loan
in Canada
So you want to get a car
but aren't sure you will qualify for a car loan. We will give you
information on what lenders want from you in order to approve you
for auto loan financing. Here are the basics you will need to buy a
car:
1. Working: Most
lenders require that you have full time employment for a minimum of
3 months with pay stubs to prove it. The reason for this is that
Canadian companies that hire new employees usually have a
probationary period of three months. In other words, the company can
terminate employment any time in the first three months and you do
not have a secure position.
In Ontario: We have one lender who requires that you only have one
month on the job with a minimum of two pay stubs.
Special circumstances: if you are on permanent disability, on
spousal support, retired or have some other situation, we most
likely know a lender that will approve you.
2. You
must have a valid G2 Drivers Licence
3. Proof of Income:
You must be able to prove income which is most often in the form of
pay stubs from your employer. Other proof of income can be in the
form of bank statements, workplace contracts and other forms of
proof of income that show the lender you have the ability to repay
the loan.
4. Minimum Income
Requirements: In most provinces in Canada, the minimum income
requirements is $1,750 per month gross income - that is income
before taxes and other deductions are taken off.
In Ontario: Minimum income requirements can be as low as $1,400 per
month gross income - that is income before taxes and other
deductions are taken off.
5. Proof of
Residence: The loan company will need proof of your current
address usually with a photocopy of your drivers licence along with
a utility bill or phone bill. The reason for this is that the lender
needs to know where to repossess the vehicle if you default on
payments.
If you have any other
questions, submit an application and we will contact you with your
answer or approval.
