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.