Financing a Car Loan when New to Canada

Financing a Car Loan when New to Canada

Posted on August 10, 2021

Canada is an amazing place to live and to resettle. It’s immense and immensely popular with people from across the world wanting a new start. But you’re going to need a car to get anywhere and your life isn’t the only thing that requires a new start, your credit will too. We asked our Waterford auto loans team to outline the process of getting a car loan when new to Canada.

Car Loan when New to Canada

The vast majority of the car buying process will be exactly the same as where you’re from. You save a deposit or down payment, get the money together to buy the car using a loan or other means, buy the car, register it with the authorities, insure it and you’re good to go.

The downside as a newcomer is that you won’t have a credit history here. Even though you may have a spotless history in your home country, they are not transferrable.

That means beginning again.

Some banks have newcomer products that offer credit, bank accounts and other help.

Otherwise, you’re going to need to build credit all over again before you can access standard borrowing.

Auto loans as a newcomer to Canada

If you built credit in your home country, you can use the same techniques to do it here. The credit bureaus are probably the same anyway, TransUnion and Equifax.

Open a bank account and get a credit card

You first need to open a bank account here in Canada. Use one of those newcomer deals some banks are offering or use a Canadian branch of your old bank, whichever works best.

If the bank account comes with a credit card, get one. Don’t worry about any fancy services just yet, as long as the account can handle automatic payments, you’re good.

Use your credit card

If you get a credit card with your bank account, use it. Otherwise, get a secured credit card and begin using that. Both will allow you to use it as a standard card but will also mark your payments on your new Canadian credit report.

Do that for 6-12 months to build a payment history.

Get your landlord to mark rent payments

If you’re renting here, ask the landlord or letting agency to mark your rent payments against your credit report. Some will, some won’t so choose the former if you’re looking for a place to stay.

If you’re responsible for your own utilities, cable and other bills, look for providers who also mark payments on your credit report. The more positive entries you can add, the faster your score will improve.

Get a phone contract

A contract phone is not the cheapest way to stay in touch but it will help with building credit. As long as you use a provider that marks payments, it’s another positive entry into your credit history.

Work with auto loan specialists

When you have built a modest credit score and have some positive imprints on your credit report, come see the auto loan specialists. We can help you access a wide range of competitive auto loans to help you buy a car.

We can even secure you the car to buy with it!

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

Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!