Your 60-Month New Car Loan Estimate for Ontario (600-700 Credit)
You're in a solid position. A credit score between 600 and 700 is considered 'fair' territory, and it opens up a wide range of financing options for a new car in Ontario, especially over a standard 60-month term. This calculator is specifically calibrated for your situation, factoring in the variables that matter most: Ontario's 13% HST and the interest rates available to someone with your credit profile.
Let's break down the numbers to give you a clear, realistic budget for your new vehicle.
How This Calculator Works for Your Scenario
This isn't a generic calculator. It's pre-configured with data specific to your path:
- Province Tax (HST): We automatically add Ontario's 13% Harmonized Sales Tax to the vehicle price. A $35,000 car is actually a $39,550 loan before any down payment.
- Credit Profile (600-700 Score): This is the most critical factor. For a new car, lenders typically offer interest rates ranging from 7.99% to 14.99% in this credit tier. Your exact rate will depend on your income stability, debt-to-income ratio, and the specific lender. We use a realistic average for our estimates.
- Vehicle Type (New Car): Lenders view new cars as lower risk, which results in better interest rates compared to used vehicles.
- Loan Term (60 Months): This term provides a good balance between a manageable monthly payment and paying off the loan in a reasonable timeframe.
Approval Odds: What Lenders See in a 600-700 Score
Your approval odds are high. A score in this range means you've likely managed credit in the past and are on the right track. Lenders will focus on two things next: income stability and your overall debt load. They want to see that your total monthly debt payments (including the new car loan) don't exceed 40-45% of your gross monthly income.
Even with some blemishes on your report, approval is very likely. For instance, if you're dealing with past issues, it's still possible to get behind the wheel. For a deeper dive, see our guide: Toronto Essential: Collections? Drive *Anyway*. Lenders are also flexible with different income sources. If you receive disability benefits, this is often seen as stable, reliable income. Learn more about how that works here: Disability Income? Bad Credit? Your Car Loan Just Got Its Green Light, Toronto.
Example Scenarios: New Car on a 60-Month Term in Ontario
Here's how the math breaks down for different new car prices, including the 13% HST. We've used an estimated interest rate of 10.99% for this credit profile, which is a common rate for fair credit applicants.
| Vehicle Price | Price with 13% HST | Amount Financed (0 Down) | Estimated Monthly Payment (60 mo @ 10.99%) |
|---|---|---|---|
| $25,000 | $28,250 | $28,250 | ~$599/mo |
| $35,000 | $39,550 | $39,550 | ~$838/mo |
| $45,000 | $50,850 | $50,850 | ~$1,077/mo |
| $55,000 | $62,150 | $62,150 | ~$1,317/mo |
Disclaimer: These are estimates for illustrative purposes only. Your actual payment will depend on the final approved interest rate (O.A.C.) and vehicle price.
A down payment can significantly lower these monthly costs and may even help you secure a better interest rate. However, it's not always a requirement. Many Ontarians with fair credit can get approved with zero down. Find out if you qualify by reading: Your Ink Is Dry. Your New Car Needs No Down Payment, Ontario.
Frequently Asked Questions
What interest rate can I expect in Ontario with a 650 credit score for a new car?
With a 650 credit score, you're in the middle of the 'fair' credit range. For a new car loan in Ontario, you can typically expect interest rates between 7.99% and 14.99%. The final rate depends on your full financial profile, including income, job stability, and existing debt. A down payment can help secure a rate at the lower end of this range.
How does a 60-month (5-year) term affect my new car loan?
A 60-month term is a popular choice that balances affordability with the loan's total cost. It results in a lower monthly payment compared to shorter terms (like 36 or 48 months) but means you'll pay more in total interest over the life of the loan. It's a strategic way to fit a new car into your budget without overextending yourself financially.
Do I have to make a down payment on a new car with a 600-700 credit score in Ontario?
Not necessarily. Many lenders in Ontario offer $0 down payment options for applicants with credit scores in the 600-700 range, especially for new vehicles. However, providing a down payment of 10-20% is highly recommended as it reduces your monthly payment, lowers the total interest paid, and shows financial commitment to the lender, which can improve your approval terms.
How is the 13% HST calculated on my financed car?
In Ontario, the 13% HST is applied to the final negotiated price of the vehicle. This total amount (vehicle price + HST) becomes the principal amount to be financed, before subtracting any down payment or trade-in value. For example, a $40,000 car will have $5,200 in HST, making the total amount to finance $45,200.
Can I get approved for a new car loan if I have collections on my credit report but my score is 620?
Yes, approval is very possible. While collections are a negative mark, a score of 620 shows that you have other positive credit history. Lenders who specialize in fair credit will look at the whole picture: the age and amount of the collection, your recent payment history, and your income stability. They are often more concerned with your ability to make the new payment than with past issues.
