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In ON, what should I know about maximum amortization length for car loans?
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In ON, what should I know about maximum amortization length for car loans?

In Ontario, while there isn't a specific provincial regulation setting a hard cap on car loan amortization lengths, the industry standard typically ranges from 60 to 96 months. Some lenders, particularly for new, higher-value vehicles, may offer extended terms up to 108 or even 120 months, though these are less common and subject to stringent credit criteria. These limits are primarily determined by lenders based on their risk assessment, the vehicle's depreciation rate, and market conditions, including the prevailing interest rate environment in 2025.

For consumers, understanding this matters significantly. While a longer amortization period can result in lower monthly payments, it substantially increases the total interest paid over the life of the loan. More critically, it elevates the risk of negative equity, where the outstanding loan balance exceeds the vehicle's market value, especially given rapid depreciation. Furthermore, a prolonged loan term often means you'll be making payments long after the manufacturer's warranty has expired, leaving you financially exposed to potential repair costs without coverage.

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