Owning a car in Canada can be essential for international students to navigate daily life, whether commuting to campus or traveling around the city.
However, securing a car loan as an international student can be challenging due to limited credit history or residency requirements.
Fortunately, several loan providers cater specifically to international students.
In this guide, we explore the 7 best car loan for international students in Canada, their features, and how to choose the best option for your needs.
Best Car Loan for International Students in Canada
| Loan Provider | Loan Amount | Co-signer Requirement | Interest Rates | Loan Terms | Eligibility Requirements |
|---|---|---|---|---|---|
| Scotiabank Car Loans | Up to $50,000 | Yes | 4.99% – 9.99% | 36 – 72 months | Valid study permit and co-signer |
| TD Auto Finance | Up to $75,000 | Yes | 5.69% – 8.99% | 36 – 84 months | Canadian co-signer required |
| RBC Auto Loans | Up to $60,000 | Yes | Starting at 5.99% | 12 – 84 months | Enrolled in a Canadian institution |
| CIBC Auto Loans | Varies | Yes | Prime + 1% | Flexible terms | Co-signer with Canadian credit |
| Desjardins Auto Financing | Up to $50,000 | No | Starting at 5.99% | 12 – 84 months | Valid driver’s license in Canada |
| College Ave Student Loans | Up to $80,000 | No | 5.99% – 12.99% | 24 – 72 months | Enrolled in eligible programs |
| HSBC Auto Loan | Up to $50,000 | Yes | Starting at 6.79% | 12 – 72 months | Valid Canadian study permit |
1. Scotiabank Car Loans
- Loan Amount: Up to $50,000
- Interest Rates: 4.99% – 9.99%
- Loan Terms: 36 – 72 months
Scotiabank offers competitive rates for international students with a Canadian co-signer.
The loan is available for new or used cars, with flexible repayment plans tailored to suit student budgets.
2. TD Auto Finance
- Loan Amount: Up to $75,000
- Interest Rates: 5.69% – 8.99%
- Loan Terms: 36 – 84 months
TD Auto Finance provides car loans with flexible payment terms.
A Canadian co-signer is required, but the lender offers pre-approval options to simplify the buying process.
3. RBC Auto Loans
- Loan Amount: Up to $60,000
- Interest Rates: Starting at 5.99%
- Loan Terms: 12 – 84 months
RBC’s auto loans are available to international students with a co-signer who has a good credit history in Canada.
They also offer fixed and variable rate options depending on your preference.
4. CIBC Auto Loans
- Loan Amount: Varies
- Interest Rates: Prime + 1%
- Loan Terms: Flexible
CIBC provides personalized loan solutions for international students.
A co-signer is mandatory, and terms can be adjusted based on your financial situation and repayment ability.
5. Desjardins Auto Financing
- Loan Amount: Up to $50,000
- Interest Rates: Starting at 5.99%
- Loan Terms: 12 – 84 months
Desjardins offers a no co-signer option for international students, making it an attractive choice.
A valid driver’s license and proof of enrollment in Canada are required for eligibility.
6. College Ave Student Loans
- Loan Amount: Up to $80,000
- Interest Rates: 5.99% – 12.99%
- Loan Terms: 24 – 72 months
Known for student-friendly loans, College Ave offers car loans to international students without the need for a co-signer.
This makes it a hassle-free option for those without local guarantors.
7. HSBC Auto Loan
- Loan Amount: Up to $50,000
- Interest Rates: Starting at 6.79%
- Loan Terms: 12 – 72 months
HSBC provides auto loans with competitive rates and flexible repayment options.
International students must have a valid study permit and a co-signer with Canadian credit history.
Quick One: We have other useful loan articles here.
Frequently Asked Questions
Can international students get a car loan in Canada without a co-signer?
Yes, providers like Desjardins Auto Financing and College Ave Student Loans offer car loans without the need for a co-signer. However, additional requirements such as proof of enrollment and a valid driver’s license may apply.
What interest rates can international students expect on car loans?
Interest rates typically range from 4.99% to 12.99%, depending on the provider, the loan terms, and whether a co-signer is involved.
What documents are required to apply for a car loan as an international student?
Most lenders require a valid study permit, proof of enrollment, a valid driver’s license, and a Canadian co-signer (if applicable). Some may also request proof of income or savings.
Conclusion
Securing a car loan as an international student in Canada is possible with the right lender.
Whether you prefer a no co-signer option like Desjardins or College Ave Student Loans, or a traditional bank loan with a Canadian guarantor, options abound.
Be sure to compare interest rates, loan terms, and eligibility requirements to find a loan that aligns with your financial needs and repayment capability.
