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Car Loan Guide for New Immigrants - Edmonton

Car Loan Guide for New Immigrants - Edmonton

Canada is a great place to start a new life, but it's also true that new immigrants can face a lot of challenges. This is particularly the case with finance, where the lack of credit history can make it difficult to apply for all kinds of credit.

 

But if you need to finance a car, there are options available, even if you've relocated to Canada only recently. There's an increasing number of products known as car loans for immigrants, and applying for one could get you behind the wheel in no time.

 

 

What are Car Loans for Immigrants?

 

Simply put, an immigrant car loan is a form of auto finance which recognizes that new Canadians won't have an extensive credit history to back up their application. It's a type of product offered by many mainstream banks, credit unions and specialist car credit companies.

 

That's the good news. However, there are a few things you need to bear in mind before making an application for this kind of credit.

 

High Down Payment Levels

 

Unfortunately, there's no avoiding the fact that most car loan companies will expect a large down payment to consider applications from recent immigrants. With no credit history to examine, the lenders have no way of knowing how much of a risk issuing the loan will be, and so they need to charge a hefty down payment to reduce their exposure. The details vary, but expect to pay around 25%.

 

This may be difficult to find if you're a new immigrant with plenty of other expenses, but the upside is that a larger down payment will make your repayments lower once you're approved.

 

Plenty of Paperwork

 

You'll also need to provide official paperwork proving your identity and employment status. For recently approved immigrants this probably won't be a problem, as your paperwork will still be relevant and up to date. However, if your documentation was more complicated, or if you've suffered employment difficulties, getting the right documents together could be an issue.

 

Limited Time of Eligibility

 

Lastly, you'll need to be a relatively recent immigrant to Canada to apply for one of these loans. Again, the details will vary from lender to lender, but in general if you've been in Canada for longer than three years or so, you'll be expected to have built up some level of credit history and will need to apply for a regular loan.

 

Car and Finance Packages

 

Bearing all this I mind, one of the best ways to be approved for a car loan for new immigrants is to apply for a combined car plus finance package from a company like Freedom Credit. These deals have much wider acceptance criteria, and the whole application process is more straightforward and quicker, which is especially important for anyone with special circumstances.

 

If you're a new arrival in Canada, you might have given up on getting approved for a car loan. However, if you visit Freedom Credit you can apply for auto finance in Edmonton, whatever your credit status and residency history.

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