In NT, what should I know about minimum down payment for car loans?

In the Northwest Territories, consistent with the rest of Canada, there is no specific federal or territorial legislation that mandates a minimum down payment for car loans. Instead, the down payment requirement is entirely at the discretion of individual lenders, including banks, credit unions, and dealership finance departments. These institutions meticulously assess a borrower's creditworthiness, income stability, existing debt-to-income ratio, and the specific vehicle being financed to determine the appropriate down payment, or if a "zero down" option is viable. In the current 2025 market, characterized by elevated interest rates and a more cautious economic outlook, lenders are generally more risk-averse, which can lead to increased expectations for down payments, especially for applicants with lower credit scores or for longer loan terms. A substantial down payment significantly reduces the loan-to-value (LTV) ratio, making the loan less risky for the lender and often resulting in more favourable interest rates and terms for the consumer. This matters profoundly because a larger down payment not only lowers your monthly payments and total interest paid over the loan's life but also builds immediate equity in your vehicle and can significantly improve your chances of loan approval, particularly when navigating a tighter lending environment. It's also important to note that the down payment typically does not cover the GST applicable in NT, or other administrative fees, which are usually paid separately or added to the financed amount.