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

In Saskatchewan, similar to other Canadian provinces, there is no specific provincial or federal legislation dictating a universal minimum down payment for car loans. Instead, the required down payment is entirely at the discretion of individual lenders, who assess risk based on several key factors: your credit history and score, income stability, the vehicle's age and market value, and the overall loan-to-value (LTV) ratio. In the current 2025 market, characterized by evolving economic conditions and interest rate environments, lenders may adopt more conservative lending practices, often seeking a down payment of 10-20% for prime borrowers, or potentially more for applicants with lower credit scores or for vehicles with higher depreciation risk. A significant down payment is highly advantageous for the consumer as it directly reduces the principal amount financed, resulting in lower monthly payments, substantial savings on total interest paid over the loan term, and a decreased likelihood of falling into negative equity. Furthermore, paying a down payment helps cover the provincial sales tax (PST) in Saskatchewan, which is applied to the vehicle's purchase price, and can significantly improve your chances of loan approval and securing a more competitive interest rate.

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