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Kitchener Car Loans for Newcomers to Canada

Kitchener Car Loans for Newcomers to Canada

Have you just relocated to Canada from elsewhere? Decided to settle in Kitchener and build a new life? We don’t blame you! It’s lovely here and we enjoy an enviable quality of life.


It isn’t all good news though, especially if you want to access credit.


First the good news. Canada is a car-centric country. Cities have excellent public transit but outside of the city, we use the car. That means you’re never short of car dealerships, repair shops and all the amenities you need to keep you on the road.


The not so good news though, is that you’re going to have to start building credit all over again.


New Start, New Credit


Despite credit bureaus being global enterprises, they only count credit reports within national borders. If you moved here from the U.S., Asia, Europe or anywhere else, you have to begin your credit history all over again.


It’s not fair but that’s how it is.


We recommend starting that right away. As soon as you have a job and a fixed address in Kitchener, apply for a credit builder card and begin building your credit history.


Some landlords and some utility companies can now make entries on your credit report to help build a positive credit history. This is a relatively new process and not all companies will do it.


Newcomer Programs


Some banks and a few lenders have special programs for newcomers to Canada. They provide specialist car loans for those new to our shores who haven’t yet build a Kitchener credit history.


They can be more expensive than a standard loan but make sense if you need a car to get around and to work but haven’t yet built a credit history for a standard loan.


Otherwise, building credit in Kitchener is the same as everywhere else.


Get a credit card and always pay off the balance. Get a phone contract, ask your landlord or utility company if they will make entries on your report and gradually build a payment history.


Paperwork for Car Ownership


You will also need a driver’s licence. Depending on where you moved from, you may be able to exchange your existing one for an Ontario licence. You will need paperwork from your original licence authority, proof of ID, your current licence and an abstract letter from the licencing agency proving you’re entitled to a licence.


You’ll also need your Canadian Citizenship card.


When it’s closer to the time, you will also need car insurance. You will need insurance in place before you drive the car away but you can often do it at the dealership.


You will need your driver’s licence number, vehicle details and the paperwork for any driver training you have had while in Canada.


Vehicle registration will usually be taken care of by the dealership. It requires your driver’s licence number, proof of insurance, the pink slip and the licence plate number of your car.


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


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Categories: Car Loan

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