Estimate Your SUV Payments in Ontario with a 600-700 Credit Score
You're in a strong position. A credit score between 600 and 700 in Ontario puts you in the "fair" or "near-prime" category, opening up more competitive financing options for that SUV you need. This calculator is designed specifically for your situation, factoring in Ontario's 13% Harmonized Sales Tax (HST) and the interest rates typically available to borrowers in your credit range.
How This Calculator Works for Ontarians
Our tool demystifies the auto loan process by breaking down the key factors that determine your monthly payment. Here's what each field means for you:
- Vehicle Price: The sticker price of the SUV. Remember, in Ontario, this isn't the final price. The 13% HST will be added on top. For example, a $30,000 SUV will have a pre-financing cost of $33,900 ($30,000 x 1.13).
- Down Payment: The cash you put towards the vehicle upfront. For a 600-700 credit score, a down payment of 10-20% isn't just recommended-it can significantly lower your interest rate and monthly payment, showing lenders you have skin in the game.
- Trade-in Value: The amount a dealer offers for your current vehicle. This value is subtracted from the total purchase price *after* tax, reducing the amount you need to finance. If you owe more on your trade-in than it's worth, you may have negative equity. For more on this, check out our Ditch Negative Equity Car Loan | Canada Guide.
- Interest Rate (APR): This is the crucial number. With a 600-700 score, you're likely to see rates from specialized lenders and some B-lenders. Expect rates to be in the 7% to 14% range (OAC), depending on the vehicle's age, your income stability, and down payment.
- Loan Term: The length of the loan, typically from 48 to 84 months. A longer term means lower monthly payments but more interest paid over the life of the loan. A shorter term saves you money on interest but results in a higher monthly payment.
Approval Odds & What Lenders Look For
With a score in the 600s, your approval odds for an SUV loan are very high, provided you have stable, provable income. Lenders will see your score as a sign of rebuilding or maintaining credit responsibly. They will focus on two key metrics:
- Total Debt Service Ratio (TDSR): Lenders want to see that your total monthly debt payments (including the new car loan, rent/mortgage, credit cards, etc.) do not exceed 40-45% of your gross monthly income.
- Payment-to-Income Ratio (PTI): Your new car payment should ideally be under 15-20% of your gross monthly income.
Understanding where you stand is key. To learn more about the nuances of credit scores in the province, read The Truth About the Minimum Credit Score for Ontario Car Loans. If you're self-employed, proving your income can be a unique challenge, but options are available. Discover more in our guide on Approval Secrets: Navigating the Best Used Car Finance Options for Ontario's Self-Employed.
Example SUV Loan Scenarios in Ontario (600-700 Credit)
Let's look at some realistic numbers. The table below estimates monthly payments for popular SUV price points in Ontario, assuming a 9.99% interest rate and a $3,000 down payment/trade-in. Note how the 13% HST is included in the total financed amount.
| Vehicle Price (Before Tax) | Price with 13% HST | Amount Financed (After $3k Down) | 60-Month Term | 72-Month Term | 84-Month Term |
|---|---|---|---|---|---|
| $25,000 | $28,250 | $25,250 | ~$535/mo | ~$465/mo | ~$415/mo |
| $35,000 | $39,550 | $36,550 | ~$775/mo | ~$675/mo | ~$600/mo |
| $45,000 | $50,850 | $47,850 | ~$1,015/mo | ~$880/mo | ~$785/mo |
*Estimates only. For illustrative purposes. On Approved Credit (OAC).
Frequently Asked Questions
What interest rate can I expect for an SUV loan in Ontario with a 650 credit score?
With a 650 credit score in Ontario, you are considered a near-prime borrower. For a newer model SUV, you can typically expect interest rates (APR) in the range of 7% to 14%. The final rate will depend on factors like the vehicle's age and mileage, the size of your down payment, and your income stability.
How does the 13% HST affect my total SUV loan amount in Ontario?
The 13% HST is calculated on the selling price of the vehicle *before* your down payment or trade-in is applied. For example, on a $30,000 SUV, the HST is $3,900, making the total price $33,900. Your down payment is then subtracted from this new total. This means you are financing the tax, which increases your total loan amount and monthly payments.
Can I get a zero-down SUV loan with a 600-700 credit score?
Yes, it is possible to get a zero-down loan with a score in this range, but it's not always advisable. Lenders are more likely to approve your application and offer a better interest rate if you provide a down payment of at least 10%. A down payment reduces the lender's risk and lowers your monthly payments.
What's the maximum loan I can afford for an SUV with my credit score?
Lenders in Ontario generally use an affordability rule called the Total Debt Service Ratio (TDSR). They prefer your total monthly debt payments (new car loan, housing, credit cards, etc.) to be less than 40-45% of your gross (pre-tax) monthly income. Use this as a guide to determine a realistic maximum loan amount for your budget.
Will I need a co-signer for an SUV loan with a fair credit score in Ontario?
Generally, a co-signer is not required if you have a credit score between 600-700 and a stable, sufficient income to support the loan payments. However, if your income is on the lower side or you have a short credit history, a co-signer with strong credit could help you secure a lower interest rate.
