Get on the road fast with car loans in Canada

Whether you’re buying your first car or adding a new vehicle in the family, easily fund your new vehicle using your home equity.

Quick approval

No income verification

Flexible requirements

Large loan amount

How to get a car loan in Canada

Complete an online application

Fill out the form with the right information: no obligation or impact on your credit score.

Speak with a Financial Solutions Specialist

A specialist will contact you to provide support, answer your questions and provide more information.

Get approved and receive funds

With at least 25% equity ownership in your home, you can get approved and receive funds within a few days.

What are car loans?

Car loans are designed to help people finance the purchase of a vehicle. It’s a sum of money you obtain from a bank, car dealership or alternative financial institutions to buy a car, either new or used. Rather than spending time saving up, you can get a car without paying for the whole vehicle upfront.

Use cases for car loans

Access new or used vehicles affordably

Car loans make it easier for you to purchase new or used cars by allowing them to spread the cost over manageable monthly payments.

Maximize savings by paying upfront

Using a car loan to pay upfront can help you maintain your cash reserves for other expenses or other needs.

Reduce cost through refinancing options

By securing a lower interest rate, borrowers can reduce their monthly payments and overall loan cost, freeing up funds for other expenses and improving their financial flexibility.

Benefits of car loans using your home equity

Hit the road quick with the help of a home equity loan:

Lower your monthly payment

A home equity loan can give you a longer term to pay off your car, lowering your monthly payment.

Qualify before you car shop

Shopping for a car is easier when you know how much money you have to work with upfront.

Get approved fast

Get your new vehicle on the road fast. We can approve home equity loans in less than 24 hours.

Why choose Alpine Credits

Simple qualifying criteria

Alpine Credits focuses primarily on home equity value, and less on credit score or income status.

Quick approval and funding

Alpine Credits reviews your application significantly faster than traditional banks and lenders. Get your funds deposited in less than a week.

Personalized support

Alpine Credits has a team of Financial Solutions Specialists to help you and answer any of your questions.

Compare Us

How does a car loan work in Canada?

In Canada, car loans typically range from 36 to 72 months. A longer term means lower monthly payments, as the total cost is spread over more months.

Most lenders allow early repayment without penalties, but this varies by lender. You can make payments through a bank, credit union, or directly with the vehicle manufacturer’s financing group. Payment methods include pre-authorized payments, online payments, or phone payments.

Types of car loans in Canada

There are three main types of car loans that you can consider in Canada:

Secured car loans: In this case, the car itself is used as collateral and the lender keeps the title to the car. This means that the lender can repossess the car if you’re unable to make your loan payments. These loans have lower interest rates because the car serves as collateral.
Personal loans: With this loan, the car doesn’t serve as collateral. Therefore, if you default on your loan your car will not be seized or repossessed. However, these loans come with higher interest rates as they aren’t secured against any asset.
Lease-to-own car loans: This option allows you to lease a car with the opportunity to buy the car at the end of the loan term. Borrowers can make regular payments over a set period, which is usually around four years. In this situation, a portion of the vehicle is paid for during the term of the lease and the vehicle can be purchased at the end of the lease for the remainder of the balance.

Where to apply for a car loan in Canada

Borrowers have the option of choosing from countless reputable lenders and financial institutions that offer competitive rates and flexible terms. However, some lenders offer more flexibility in the application process than others.

Traditional lenders

Lenders like banks and credit unions offer auto financing options assuming you meet their requirements. Here’s what you can expect with a traditional lender:

Pre-approval: The lender reviews your eligibility based on your financial standing and credit score. This information is used to determine the loan amount and interest rate you’ll receive.
Required documentation: Lenders will ask for documents that verify your financial status and identity. They ask for documents like proof of employment and recent pay stubs.
Lengthy approval process: A bank can take between 3 to 7 days to approve your application. However, other lenders and dealerships can approve your application faster, especially if you have a good credit score.

Alternative lenders

Getting approved for a car loan with alternative lenders can be easier than with traditional banks. One option for Canadian homeowners is Alpine Credits. Alpine Credits offers home equity loans, allowing homeowners with equity to access funds as a lump sum. Their approval criteria are less strict than those of banks or credit unions. To calculate your home equity, subtract your mortgage balance from your home’s appraised value. The more you’ve paid off, the larger your loan can be. Home equity loans are beneficial for homeowners since credit scores and financial history matter less in the approval process.

Get driving with Alpine Credits home equity car loans

A car can be an important tool in your daily life. Regardless of your financial background, Alpine Credits believes that the finances to meet your goals should be available to you.

Through home equity loans, homeowners can access their equity in cash, which they can use towards any expense, including a new vehicle. Unlike banks, Alpine Credits only focuses on the amount of equity in your property rather than your credit score or income.

Contact Alpine Credits to learn more about home equity loans and what they can do for you. You can get connected with a Financial Solutions Specialist right away to talk about your options and to get answers to all of your questions. As long as you have enough equity in your home, you are eligible for a home equity loan, and you could be approved.

Find loan options in your area

Click on the links below to get started, and see the mortgage options available to you, in the provinces we serve across Canada!

All of Canada

Consolidation loans in Canada

Business capital in Canada

Personal loans in Canada

Home equity loans in Canada

Investment loans in Canada

Third mortgages in Canada

Mortgage refinancing in Canada

Frequently asked questions about car loans in Canada

Find answers to frequently asked questions about Alpine Credits, home equity loans, second mortgages and more.

How do car loans work?

When you take out a car loan, you agree to repay the cost of the car to the seller over time with monthly payments. Once the loan term ends, you own the car outright.

Sometimes, dealerships or private sellers require full payment upfront or charge high-interest rates, making it hard to pay. In these cases, buyers may take a loan to pay the seller in full and then repay the lender over time.

How do you get a car loan in Canada?

Car loans are either directly from the auto dealership or from a financial institution. Dealerships already collaborate with a specific bank, but you could get better interest rates if your bank differs from the dealer’s. You can also get a car loan using the equity on your home at Alpine Credits.

What is the minimum credit score for a car loan?

Lenders prefer a credit score of at least 650. You can still be approved with lower scores, but your interest rate may be higher.

Who qualifies to finance a car?

Qualifying for car financing involves having a driver’s license, a strong credit score, and a steady income with traditional banks. However, if you own a home and have been paying your outstanding mortgage, you may qualify for a home equity loan to purchase a car.

Does the Bank of Canada's interest rate affect car loans?

The rates the Bank of Canada sets affect all types of loans, including car loans. Keeping an eye on the rates can help determine the right time to buy a vehicle.

How do bad credit car loans work?

If you have bad credit, getting a car loan can be tough. Traditional lenders may deny your application, so you might need a car loan specialist. At Alpine Credits, we specialize in bad credit car loans and can help you secure a loan without considering your credit score for eligibility.

Homeowners get approved.

Unlike traditional banks, all you need to qualify for a loan at Alpine Credits is to own your home. We make the process as quick and easy as possible. Applying won’t affect your credit score.