New to Canada Immigration Car Loan Application – Ontario Advice [Updated 2019] - Approval Team Canada - Under New Management
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New to Canada Immigration Car Loan Application – Ontario Advice [Updated 2019]

  • If you are planning to make the move to Ontario, or have just arrived in Canada, one of the main concerns you may have is getting a vehicle.

Cars are a great way to explore your new home, make day to day chores easier, and can sometimes be essential for employment. Unfortunately, if you are not properly educated on how to go about buying a new car in Ontario, you’ll likely find yourself confused by the process and ultimately not getting the best possible deal.

What Documents Do I Need

The first thing you’ll need to take care of is getting together the proper paperwork and documents required to own a car.


  • Your Ontario Driver’s License.
  • Valid car insurance.
  • Your vehicle registration papers.


Obtaining these are a step by step process on the path to becoming a driver and car owner in Canada, starting with your Ontario Driver’s License.

How to Get a Driver’s License in Ontario

Depending on which country you originate from, you might be able to exchange your license for an Ontario one.

If this is not the case for you, it is still possible to get some credit for the experience you gained in your home country. To exchange your current license towards an Ontario one you’ll require supporting documents:

  • Your current Driver’s License.
  • Your Canadian Citizenship card.

In addition, you can provide an official and original abstract letter or document. This is only necessary if you wish to claim more than one year of driving experience and immediately obtain your full G license.

This letter must have been written within the past 6 months and include these details:

  • A logo, coat of arms, symbol, logo, or emblem from the authority issued on your license.
  • The date you obtained your license.
  • Your legal name.
  • Your date of birth.
  • Your driver’s license number, class, current status, and expiry date.
  • The date the document was written.



How to Get Car Insurance in Ontario

In order to get Car Insurance, you’ll need to provide a few types of documents and some additional information:

  • The make, mileage, model and registration number for the car.
  • The driver’s license number for every individual who will use the vehicle.

Optionally, you can include:

  • A certificate of any additional education you have from within the past 3 years in order to gain a better insurance rate.
  • Your previous Canadian driving record.
  • Previous Canadian insurance policies.

How to Register a Vehicle in Ontario

To finally wrap up the process and make you the legal owner of your vehicle, you’ll need to register it with the government of Ontario. In order to do this, you’ll need:

  • Your driver’s license.
  • Your 15 digit registrant identification number, or RIN.
  • A bill of sale for the car.
  • Proof of a valid and current insurance policy.
  • Your license plate number.

When getting a new car through a dealership, they will more than likely take care of the vehicle registration process for you. When buying a used car, you’ll need to include:

  • A Used Vehicle Information Package, or UVIP.
  • A Drive Clean Emissions Test, or E-Test.
  • A Safety Standards Certificate.

You can also visit a few websites dedicated to settling into Ontario that covers this subject for additional information.

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Should I Buy a Used or New Car?


There are pros and cons to buying both new and used vehicles.

  1. New vehicles will be more expensive than used.
  2. Used vehicles can’t be leased and have far more trouble getting financing.
  3. The condition of a used vehicle will not on the same level as a new car.
  4. Only Certified Pre-Owned cars are eligible for a warranty, while all brand new ones are covered.
  5. New vehicles can only be bought at dealerships.
  6. New vehicles will have enhanced safety and luxury features.


Buying a vehicle from a dealership in Ontario will allow you access to Certified Pre-Owned cars and new ones, but you will likely be able to obtain a better price with a private seller on a used vehicle. What a private seller can’t always provide is a guarantee the vehicle is in working and safe condition.

How to Lease or Finance a Car in Ontario

There are 2 ways you can go about purchasing a vehicle, aside from using your own funds to buy it outright:


The most common way a car is purchased by Canadians. This method offers you the option to put down what you have towards a car that is worth more.

  1. The longer the term, the lower your monthly payments.
  2. The interest rate is determined by the length of the loan and your credit score.
  3. Some manufacturers offer special loan rates and incentives.
  4. Can be paid off sooner to avoid higher interest.
  5. No restriction on the use of your car.


Leasing means you are essentially renting the vehicle from the dealership. While you will be able to use the car, you won’t actually own it.

  1. Some restrictions on the use of the car.
  2. Lower monthly payments than loans.
  3. Option to buy the car or sell it back to the dealership at the end of the lease.

What Programs Are Available to Help New Canadians Buy a Car?

There are a few programs available to help you transition into Ontario driving as easy as possible.

  1. Banks offer programs to help you get approved for loans without a credit history.
  2. Most car manufacturers offer discounts and incentives to new Canadians.

If you are still having trouble getting yourself approved, or simply want to ensure you get the best possible deal, we can help make the transition as easy a possible.

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