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Finding a Car Loan as a Canadian Immigrant in Waterloo

Finding a Car Loan as a Canadian Immigrant in Waterloo

Until the world stopped for a year during 2020, Canada welcomed thousands of new immigrants every year. It’s an incredibly popular place to relocate to and we welcome you all. But what happens when you try to buy a car to get around? Can you get a car loan as a new Canadian immigrant? Our Waterloo car loans team explains the situation.

 

Car Loan as a Canadian Immigrant

 

Once you arrive in Canada and begin exploring, you’ll realize just how huge our country is. Unless you’re planning to stay in the city, you’re going to need a car to get around.

 

Some newcomers put cash aside for a new car as they know getting credit might be a challenge. Some newcomers don’t have that luxury. So, what can you do?

 

Why is accessing credit a challenge to newcomers?

 

Accessing credit is a challenge because your credit history doesn’t come with you when you emigrate. Even though the credit bureaus are international, your credit history isn’t.

 

So that credit score you spent a lifetime working on has no relevance here. It will still be relevant in your home country if you decide to go home but it won’t work anywhere outside that country.

 

That means you’re beginning again.

 

Which is why accessing credit is a challenge.

 

What are your car loan options?

 

You do have options though.

 

Work with a Waterloo car loan specialist – It’s mainly mainstream lenders that won’t want to lend you money to begin with. Work with a specialist like our team and we can find specific loans for people with no credit.

 

New immigrant car loan programs – Some of the national banks offer specific car loans to newcomers. RBC, Scotiabank and RBC Royal Bank all have car loan programs specifically for new arrivals.

 

Manufacturer deals for newcomers to Canada – Some auto manufacturers also offer incentives and special deals just for new immigrants to Canada. These change all the time so a quick web search will tell you who is offering what.

 

Wait until you have some credit history – This is the less than ideal option. Wait a while, build up some credit history in Canada and then apply for a loan.

 

Building your credit score as a newcomer to Canada

 

The good news is that building a credit history and credit score uses the same principles here as they did in your home country.

 

That means getting a credit card and using it, paying the minimum each month by automatic payment and clearing it every month to avoid the interest.

 

It means finding a landlord and/or utility companies that add notes to your credit report to help build it out.

 

Finding a phone contract with no credit checks that also notes payments on your credit report.

 

Paying everyone and everything on time for 18-24 months until you have a solid payment history and enough for lenders to be able to use when making a decision.

 

Then you should enough of a credit score and credit history to get a competitive auto loan.

 

When you’re ready for a car lease or loan, get in touch with the Waterloo auto loan experts at Northway Ford for great deals on auto finance.

 

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Categories: Car Loan

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