New Car Loan Calculator: 84-Month Term for Excellent Credit in Ontario
Welcome to your specialized calculator for financing a new vehicle in Ontario. With a credit score of 700 or higher, you are in a prime position to secure the best interest rates and most favourable terms available. This tool is designed to give you a clear, data-driven estimate of your monthly payments on an 84-month loan, factoring in Ontario's 13% Harmonized Sales Tax (HST).
How This Calculator Works for You
As a borrower with a strong credit profile, lenders view you as a low-risk applicant. This unlocks access to lower interest rates and more flexible options. Our calculator breaks down the costs specific to your situation:
- Vehicle Price: The sticker price of your new car.
- Down Payment & Trade-in: The amount you contribute upfront. A larger down payment reduces the total amount financed, lowering your monthly payment and total interest paid. If you're concerned about an existing loan, our guide on how to Ditch Negative Equity Car Loan | Canada Guide can be a valuable resource.
- Ontario HST (13%): We automatically calculate and add the 13% HST to the vehicle price, as this is a mandatory part of the total cost financed in Ontario.
- Interest Rate (APR): For a 700+ credit score on a new vehicle, you can typically expect rates ranging from 5.5% to 8.5% APR (OAC). Rates are subject to lender approval and market conditions.
- Loan Term: You've selected 84 months (7 years). This term results in lower monthly payments but means you will pay more interest over the life of the loan compared to shorter terms.
Understanding the Numbers: A Real-World Ontario Example
Let's see how the 13% HST affects the total amount you finance. It's not just on the price, but the price after any manufacturer rebates.
- Vehicle Price: $45,000
- HST Calculation: $45,000 x 0.13 = $5,850
- Total Price with Tax: $45,000 + $5,850 = $50,850
- Less Down Payment: $5,000
- Total Amount to Finance: $45,850
This $45,850 is the principal amount your loan payments will be based on.
Approval Odds: Very High
With a credit score over 700, your approval odds are excellent. Lenders see you as a reliable borrower, which means you'll likely receive multiple offers with competitive rates. However, lenders will still verify your income and employment stability. A consistent income is key, but even with a new job, a strong offer letter can be sufficient. For more details, see our article on Your Contract: New Job Car Loan Proof, Ontario.
Example Scenarios: 84-Month New Car Loan in Ontario
The table below illustrates potential monthly payments for different vehicle prices. These estimates assume a 6.99% APR, a common rate for excellent credit, with a $5,000 down payment/trade-in. (Note: These are for illustrative purposes only.)
| Vehicle Price (Before Tax) | Total Financed (After 13% HST & $5k Down) | Estimated Monthly Payment (84 Months) |
|---|---|---|
| $35,000 | $34,550 | ~$520 |
| $50,000 | $51,500 | ~$775 |
| $65,000 | $68,450 | ~$1,030 |
Disclaimer: Payments are estimates (OAC) and do not include licensing, administration, or other potential fees. While dealership financing is common for new cars, it's also worth exploring other options. Learn more about your choices in our guide to an Ontario Private Car Loan: Skip the Dealership Drama.
Frequently Asked Questions
What interest rate can I expect in Ontario with a 700+ credit score?
With a credit score of 700 or higher, you are considered a prime borrower. For a new vehicle, you can typically expect to be offered competitive interest rates from major banks and lenders, often in the range of 5.5% to 8.5% APR (OAC). The final rate depends on the specific lender, current market conditions, your income, and the vehicle you choose.
Is an 84-month loan a good idea for a new car?
An 84-month (7-year) loan lowers your monthly payment, making a more expensive vehicle seem more affordable. However, the trade-off is significant: you will pay much more in total interest over the life of the loan. There's also a higher risk of becoming 'upside-down' (owing more than the car is worth) for a longer period due to depreciation. It's best for those who prioritize a low monthly payment and plan to keep the vehicle for the entire term.
How is the 13% HST calculated on a new car purchase in Ontario?
The 13% Harmonized Sales Tax (HST) in Ontario is calculated on the final sale price of the vehicle, after any manufacturer rebates or discounts have been applied, but before your trade-in value is deducted. For example, on a $50,000 car, the HST is $6,500, making the total cost $56,500 before any down payment or trade-in is applied.
Do I still need a down payment with excellent credit?
While you may be approved for a zero-down loan with a 700+ credit score, providing a down payment is highly recommended. It reduces the amount you need to finance, lowers your monthly payments, decreases the total interest paid, and helps you build equity in the vehicle faster, protecting you from negative equity.
Can I get approved with a new job but a good credit score in Ontario?
Yes, it's very possible. While lenders value long-term employment stability, a strong credit score of 700+ works heavily in your favour. If you've recently started a new job, lenders will typically accept a signed employment offer or contract that states your salary and guarantees your hours, especially for salaried positions. If your income situation is unique, you might find our article No Income History? That's Your Car Loan Approval. Drive, Toronto! helpful.
