Ontario SUV Financing: Your 84-Month Loan Estimate with a 600-700 Credit Score
Navigating the auto loan market in Ontario with a credit score between 600 and 700 places you in a unique position. You're often considered a "near-prime" or "fair credit" borrower, meaning you have access to more options than those with lower scores, but interest rates will be higher than for those with top-tier credit. This calculator is specifically designed for your situation: financing an SUV over an 84-month term in Ontario, factoring in the 13% Harmonized Sales Tax (HST).
An 84-month (7-year) term is a popular choice for lowering monthly payments, making a more capable or family-friendly SUV accessible. However, it's essential to understand the total cost of borrowing over this extended period. Use the tool below to get a clear, data-driven estimate.
How This Calculator Works for Your Ontario Scenario
This calculator isn't generic. It's pre-configured with data relevant to your profile to provide a realistic estimate. Here's what's happening behind the scenes:
- Vehicle Type (SUV): Lenders view newer SUVs as reliable assets, which can work in your favour. The loan amounts typically range from $20,000 to $50,000 for this category.
- Province (Ontario): We automatically add the 13% HST to the vehicle's selling price. For example, a $30,000 SUV actually costs $33,900 to finance before any other fees. Forgetting this is the most common budgeting mistake.
- Credit Score (600-700): For this credit range, lenders in Ontario typically offer interest rates from 8.99% to 15.99% (OAC - On Approved Credit). Our calculator uses a midpoint average for its estimate. Your final rate will depend on your specific credit history, income, and the vehicle's age.
- Loan Term (84 Months): Your total loan amount is amortized over 84 payments, resulting in a lower monthly figure compared to shorter terms.
Example Scenarios: Monthly SUV Payments in Ontario
To give you a clear picture, here are some estimated monthly payments for popular SUV price points. These examples assume an estimated interest rate of 11.9% for the 600-700 credit score range.
| Vehicle Price | Price with 13% HST | Down Payment | Total Financed | Estimated Monthly Payment (84 Months) |
|---|---|---|---|---|
| $25,000 | $28,250 | $2,000 | $26,250 | ~$465 |
| $35,000 | $39,550 | $3,500 | $36,050 | ~$639 |
| $45,000 | $50,850 | $5,000 | $45,850 | ~$812 |
Disclaimer: These are estimates for illustrative purposes only. Your actual payment will vary based on the final approved interest rate and any additional fees.
Your Approval Odds with a 600-700 Credit Score
Your approval odds are generally strong in this credit range, provided you meet two key criteria lenders focus on: stable income and a manageable Debt-to-Income (DTI) ratio. Lenders want to see that your total monthly debt payments (including the new car loan) don't exceed 40-45% of your gross monthly income.
- Strengthening Your Application: A down payment of 10% or more significantly boosts your chances. It shows commitment and reduces the lender's risk. If you've had recent credit challenges, a down payment becomes even more critical. For those who have recently completed a debt program, options are still very much available; learn more in our guide on getting a Zero Down Car Loan After Debt Settlement.
- Income Verification: Lenders will need to see proof of income. This can be from traditional employment, but many also accept alternative sources. For instance, if you're in Ontario and receive ODSP, this is often considered stable, verifiable income. You can read more about how this works in our article: ODSP in Ontario? Your Car Loan Just Found Its Favourite Client.
- Vehicle Choice Matters: Lenders are more likely to approve loans for newer, reliable vehicles like many modern SUVs. Choosing a sensible family vehicle over a high-performance sports car improves your profile. In fact, some lenders even offer favourable terms for specific vehicle types. Discover how Your Low Credit Score *Earned* You a Hybrid Loan. Yes, in Ontario.
Frequently Asked Questions
What is a realistic interest rate for an 84-month SUV loan in Ontario with a 650 credit score?
With a 650 credit score, you fall squarely in the 'fair' or 'near-prime' category. For an 84-month term on a newer SUV, you can realistically expect interest rates to be offered in the range of 8.99% to 15.99% OAC. The final rate depends on your full credit profile, income stability, and the size of your down payment.
How does the 13% HST in Ontario impact the total loan amount?
The 13% HST is calculated on the selling price of the vehicle and is added to the amount you finance. For a $30,000 SUV, the HST is $3,900, making the pre-financing price $33,900. This entire amount is then financed, meaning you pay interest on the tax as well over the life of the 84-month loan. Factoring this in is crucial for accurate budgeting.
Is an 84-month car loan a good idea for an SUV?
It can be, but with trade-offs. The primary benefit is a lower, more manageable monthly payment. The main drawbacks are paying more total interest over the seven years and the risk of being 'upside-down' (owing more than the car is worth) for a longer period due to slower equity buildup. It's best for buyers who plan to keep their SUV for the full term.
Can I get approved if my income is from sources other than a typical job?
Yes, absolutely. Lenders in Ontario are accustomed to various income sources as long as they are stable and verifiable. This includes disability benefits (like ODSP), child tax benefits, EI, and self-employment income. The key is providing documentation to prove the income is consistent.
Will a larger down payment get me a better interest rate with a 600-700 credit score?
Yes, it often can. A significant down payment (10-20% of the vehicle price) reduces the Loan-to-Value (LTV) ratio, which is a key risk metric for lenders. By lowering their risk, they are often willing to offer a more favourable interest rate. It also improves your overall approval chances and reduces your monthly payment.
