Your 24-Month Pickup Truck Loan in Ontario with a 600-700 Credit Score
You're in a specific situation: you need the capability of a pickup truck, you're in Ontario, you want to pay it off quickly over 24 months, and your credit score is in the 600-700 range. This is an ambitious but achievable goal. This calculator is designed to give you a clear, data-driven estimate of what your payments could look like, factoring in the unique variables of your scenario.
With a credit score between 600 and 700, you are considered a 'near-prime' or 'fair credit' borrower. While you won't get the lowest advertised rates, you have strong options with many lenders who specialize in this credit tier. The key is understanding how the numbers work, especially with an expensive vehicle like a pickup truck on a short term.
How This Calculator Works for Your Scenario
This tool is pre-configured with the details that matter most to you:
- Province Tax: Locked at 13% Ontario HST. This tax is applied to your vehicle price *before* financing.
- Credit Profile: We use an estimated interest rate range typical for scores between 600-700 in Canada. This is generally between 8.99% and 15.99%, depending on the lender and your overall financial profile.
- Loan Term: Fixed at 24 months. This aggressive term leads to higher payments but saves you significant interest over the life of the loan and builds equity faster.
To get your estimate, simply input the vehicle price, your down payment, and any trade-in value. We'll handle the rest.
The Impact of Ontario's 13% HST
One of the biggest factors in your total loan amount is the Harmonized Sales Tax (HST). In Ontario, this is a mandatory 13% tax on the purchase price of the vehicle. It's crucial to factor this in, as it's financed along with the truck.
Example Calculation:
- Vehicle Price: $40,000
- HST (13%): $5,200
- Total Price Before Down Payment: $45,200
This $5,200 is added to the amount you need to finance, directly impacting your monthly payment.
Example Pickup Truck Loan Scenarios (24-Month Term)
To give you a realistic idea, here are a few scenarios for popular pickup trucks in Ontario with a fair credit profile. Notice how the short 24-month term results in high monthly payments, a strategy best suited for those with strong, stable income.
| Vehicle Price | Down Payment | Total Financed (incl. 13% HST) | Est. Interest Rate | Est. Monthly Payment |
|---|---|---|---|---|
| $35,000 | $4,000 | $35,550 | 12.99% | $1,682/mo |
| $50,000 | $7,000 | $49,500 | 11.99% | $2,323/mo |
| $65,000 | $10,000 | $63,450 | 10.99% | $2,948/mo |
Disclaimer: These are estimates for illustrative purposes only. Your actual rate and payment will depend on the specific vehicle, lender approval, and your full credit and income profile (OAC - On Approved Credit).
Your Approval Odds with a 600-700 Credit Score
Approval Odds: Good to Very Good.
A score in the 600-700 range is a solid foundation for getting approved. Lenders will see you as a responsible borrower who may have had some past credit challenges. To secure the best rate, they will focus on:
- Income Stability: Verifiable and consistent income is the most important factor. Lenders want to see you can comfortably afford the high payments of a 24-month term.
- Debt-to-Income (DTI) Ratio: Your total monthly debt payments (including this new truck loan) should ideally be less than 40% of your gross monthly income.
- Down Payment: A larger down payment reduces the lender's risk and shows your commitment, often resulting in a better interest rate. Even if you've had issues in the past, a down payment speaks volumes. As you rebuild, it's important to understand that Your Missed Payments? We See a Down Payment.
Even if you are facing more complex financial situations, options are often available. For instance, many people are surprised to learn they can get a 2026 Car Loan During Bankruptcy Ontario | Yes, It's Real, demonstrating that lenders look beyond just the score. Similarly, if your primary income is from government assistance, there are dedicated programs; for more information, check out our guide: ODSP in Ontario? Your Car Loan Just Found Its Favourite Client.
Frequently Asked Questions
What interest rate can I expect in Ontario with a 600-700 credit score for a truck?
For a 600-700 credit score in Ontario, you can generally expect an interest rate between 8.99% and 15.99%. The exact rate depends on your income, job stability, down payment, and the specific lender. A shorter term like 24 months may sometimes help you secure a slightly lower rate as it represents less risk to the lender.
How does the 24-month term affect my pickup truck loan?
A 24-month term has two major effects. First, your monthly payments will be significantly higher than on a more common 60 or 72-month term. Second, you will pay much less in total interest over the life of the loan and own your truck free and clear much faster. This option is best for buyers with strong monthly cash flow.
Is a large down payment necessary for a pickup truck loan with my credit?
While not always mandatory, a substantial down payment (10-20% of the vehicle price) is highly recommended with a 600-700 credit score. It lowers the amount you need to finance, reduces your monthly payment, and significantly increases your approval chances by lowering the lender's risk.
How is the 13% HST calculated on a vehicle purchase in Ontario?
The 13% HST is calculated on the final selling price of the pickup truck. If you have a trade-in, the HST is calculated on the difference between the new vehicle's price and your trade-in's value. This taxable amount is then added to your loan before your down payment is subtracted.
Can I get approved for a truck loan if I have other debts?
Yes, you can. Lenders will look at your Debt-to-Income (DTI) ratio. They will add the estimated truck payment to your existing monthly debt payments (like rent/mortgage, credit cards, other loans) and compare that total to your gross monthly income. As long as this ratio is within their acceptable limits (typically under 40-45%), you have a good chance of approval.
