In NB, what should I know about rate hold / pre-approval validity for car loans?

A typical pre-approval or rate hold for a car loan in New Brunswick, much like across Canada, generally ranges from 30 to 90 days. This period allows you to shop for a vehicle with a confirmed interest rate and approved financing amount, providing crucial budget certainty. The exact duration is at the discretion of the individual lender-whether it's a bank, credit union, or captive finance company-and can be influenced by internal risk assessments and prevailing market conditions.

In a dynamic economic environment, such as the anticipated interest rate landscape for 2025, lenders may offer shorter holds to mitigate their exposure to potential rate fluctuations. It's imperative to understand that a rate hold is a commitment from the lender based on your current credit profile; any significant changes to your credit score, income, or debt load during the validity period could potentially alter the terms or even invalidate the pre-approval. While there are no specific provincial regulations in NB dictating these durations, consumer protection principles ensure clarity from lenders.

This matters significantly to consumers in NB because it dictates your timeline for vehicle shopping and ensures the rate you were approved for is still available when you're ready to purchase. Always confirm the precise validity period, any conditions, and the expiry date directly with your lender to avoid surprises and ensure a smooth purchase process.