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In NL, what should I know about newcomer programs for car loans?
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Car Loan Glossary • nl

In NL, what should I know about newcomer programs for car loans?

In Newfoundland and Labrador, as across Canada, major banks and some credit unions offer specialized newcomer programs for car loans, recognizing that recent immigrants often lack a Canadian credit history, which is crucial for traditional loan approvals. Lenders typically use alternative data points to assess creditworthiness, such as proof of stable employment, consistent income shown through bank statements, utility bill payment history, and a substantial down payment or deposit. While these programs are designed to facilitate vehicle ownership and help establish Canadian credit, applicants should anticipate potentially higher interest rates compared to established residents with strong credit profiles, reflecting the increased risk for lenders, especially in the current 2025 market environment where rates are generally elevated. It's essential to gather all relevant financial documents, including your work permit, employment letter, and bank statements, and understand that building a credit history through timely payments is a primary benefit of these programs. Additionally, remember that the 15% Harmonized Sales Tax (HST) applies to vehicle purchases in NL.

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