84-Month SUV Financing in Ontario with a Consumer Proposal: Your Path to Approval
Navigating a car loan while in a consumer proposal can feel complicated, but it's entirely achievable. You've chosen an 84-month term for an SUV in Ontario, which is a smart move to keep monthly payments manageable. This calculator is specifically designed to give you a realistic estimate based on your unique circumstances, factoring in Ontario's 13% HST and the typical interest rates for a consumer proposal credit profile (credit score 300-500).
How This Calculator Works: The Ontario-Specific Math
We don't use generic numbers. Our calculations are tailored for your situation:
- Vehicle Price: The sticker price of the SUV you're considering.
- Down Payment/Trade-in: Any amount you contribute upfront. This reduces the amount you need to finance and demonstrates financial commitment to lenders.
- Ontario HST (13%): We automatically add the 13% Harmonized Sales Tax to the vehicle's price after your down payment. This is a critical step many people forget.
- Loan Term: Fixed at 84 months to spread out the cost.
- Estimated Interest Rate: For a consumer proposal profile, rates typically range from 18% to 29.99%. Our calculator uses a realistic midpoint for its estimate. Your final rate depends on your specific income, job stability, and the vehicle chosen.
The Calculation:
(Vehicle Price - Down Payment) + (Vehicle Price - Down Payment) * 0.13 = Total Amount Financed
This total is then amortized over 84 months using an estimated interest rate to determine your monthly payment.
Example SUV Loan Scenarios in Ontario (84-Month Term)
Let's look at some real-world numbers for an SUV purchase in Ontario with a consumer proposal. These estimates assume a 24.99% APR to provide a realistic outlook.
| Vehicle Price | Down Payment | Total Loan (After 13% HST) | Estimated Monthly Payment |
|---|---|---|---|
| $20,000 | $1,000 | $21,470 | ~$560 |
| $25,000 | $2,000 | $25,990 | ~$678 |
| $30,000 | $2,500 | $31,075 | ~$811 |
Disclaimer: These are estimates for illustrative purposes only. Your actual payment will vary based on the final approved interest rate (OAC).
Your Approval Odds: What Lenders See
Having a consumer proposal on your file isn't an automatic rejection. In fact, many lenders view it as a responsible step toward resolving debt. They will focus more on your current situation:
- Stable, Provable Income: Lenders need to see that you can comfortably afford the payment. A monthly income of at least $2,200 is typically the minimum requirement.
- Debt-to-Service Ratio (DSR): Your total monthly debt payments (including the new car loan) should ideally be less than 40% of your gross monthly income. The SUV payment itself should be around 15-20%.
- Payment History on Proposal: If you've been making your proposal payments on time, it's a huge positive signal.
We specialize in securing approvals for drivers in exactly your position. Our network of lenders understands the nuances of post-proposal financing. For a deeper dive into how we make this happen, read our guide: Your Consumer Proposal? We're Handing You Keys. If you are self-employed, proving your income is a straightforward process that we can help with; check out our article on how Self-Employed? Your Bank Account *Is* Your Proof. Get Approved.
Even with a low score, financing is very possible. The principles are similar even for more severe credit events like bankruptcy. You can learn more in our Car Loan After Bankruptcy & 400 Credit Score 2026 Guide.
Frequently Asked Questions
Can I get an 84-month SUV loan in Ontario during a consumer proposal?
Yes, absolutely. Many specialized lenders in Ontario work with individuals who are currently in or have recently completed a consumer proposal. An 84-month term is common as it helps lower the monthly payment to an affordable level, which is a key factor for lender approval.
What interest rate should I expect with a 300-500 credit score in Ontario?
With a credit score in the 300-500 range due to a consumer proposal, you should anticipate a subprime interest rate. Typically, these rates fall between 18% and 29.99%. The final rate depends on your income stability, down payment, and the specific vehicle you choose.
How does the 13% HST in Ontario affect my SUV loan?
The 13% HST is calculated on the sale price of the vehicle *after* any down payment or trade-in value is applied. This total tax amount is then added to your loan principal. For example, a $25,000 SUV with a $2,000 down payment means you pay HST on $23,000 ($2,990), making your total financed amount $25,990 before interest.
Is a down payment required for an SUV loan with a consumer proposal?
While not always mandatory, a down payment is highly recommended. It reduces the lender's risk, lowers your total loan amount (and therefore interest paid), and decreases your monthly payment. For a consumer proposal file, a down payment of $1,000 or more significantly increases your chances of approval and may help you secure a better interest rate.
What are the pros and cons of an 84-month loan term?
The primary benefit of an 84-month (7-year) term is a lower, more manageable monthly payment. The main disadvantage is that you will pay more in total interest over the life of the loan compared to a shorter term. Additionally, you risk being in a negative equity position ('upside-down') for longer, where you owe more on the loan than the vehicle is worth.
