Credit history from another country does not follow you to Canada. That does not mean you cannot finance a vehicle. It means lenders look at other things.
How lenders look at newcomers
Several major Canadian banks run auto finance programs for people who are new to Canada. Instead of a credit score, they look at your status in Canada, your income or job, and your down payment. The requirements differ between lenders and they change, so I check what the dealership's lenders currently offer for your situation before you apply.
What usually helps
- A larger down payment.
- A job letter and recent pay stubs.
- A permanent resident card, or a work or study permit with time left on it. Some lenders limit the length of the loan to the time remaining on a permit.
- A Canadian bank account and a bill in your name at your Alberta address.
- A co-signer who already has Canadian credit.
Documents to bring
- Passport.
- Permanent resident card, Confirmation of Permanent Residence, or your work or study permit.
- Driver's licence.
- Proof of your Alberta address.
- Job letter, pay stubs or bank statements.
Keep the loan affordable
A first loan in Canada can carry a higher interest rate than one for a borrower with years of credit history. Choose a vehicle that fits your budget with room to spare, and ask for the total cost of borrowing in writing, not only the payment.
Build credit as you go
A car loan paid on time, every time, helps build your Canadian credit history. So does a first credit card paid in full each month. A stronger history can mean better terms on your next vehicle.
Students and temporary workers
International students and temporary workers do finance vehicles, often with a larger down payment or a co-signer. Paying cash for a lower-priced vehicle is the other route, and it leaves you with no monthly payment.
Questions about a specific vehicle?
Text me at 780-953-7887 with the stock number, or request a quote. I answer in English or Mandarin.
General information for buyers, not legal or tax advice. Rules and tax rates change, so confirm the details with AMVIC, an Alberta registry agent or your home province before you buy.