Key takeaways
- TD is the only program we found with 0% down for permanent residents
- RBC and TD allow terms up to 96 months; Scotiabank up to 60 months
- Scotiabank finances only new cars and cars up to 4 years old
- Foreign workers face higher down payments: 15% at RBC and TD, 25% at Scotiabank
- We found no dedicated BMO newcomer car loan in October 2026
Newcomer car loans at the big banks
| Bank | Who qualifies | Minimum down payment | Maximum loan | Maximum term | Vehicle age |
|---|---|---|---|---|---|
| RBC | Permanent residents and temporary foreign workers in Canada less than 3 years; international students may apply | 15% | $75,000 (no maximum for investor-class PRs) | 96 months | Up to 10 years old |
| Scotiabank StartRight | Permanent residents and foreign workers in Canada 3 years or less | 10% (PR); 25% (foreign workers) | $75,000 | 60 months | New, or up to 4 years old |
| TD | Permanent residents and foreign workers in their first 5 years | 0% (PR); 15% of cash price (foreign workers) | No maximum stated (PR); $75,000 (foreign workers) | 96 months (PR); 60 months (foreign workers) | Current model year to 10 years old |
| CIBC Car Loan for Newcomers | People who have lived in Canada 5 years or less; asks for proof of PR | Not stated (CIBC car loans allow no down payment) | $75,000 | 96 months | Up to 10 years old (CIBC car loans) |
| BMO | We did not find a dedicated newcomer car loan on BMO’s Canadian site in October 2026. BMO offers general car and personal loans; ask a branch. | ||||
Snapshot from each bank’s own page, checked October 5, 2026. Programs change; confirm with the bank or dealer.
RBC car loans for newcomers
- For permanent residents and temporary foreign workers in Canada less than 3 years. RBC says international students may apply.
- No credit history required if you meet RBC’s other rules.
- At least 15% down; up to $75,000 (no maximum for investor-class permanent residents); up to 96 months; vehicles up to 10 years old.
- Foreign workers show proof of income and employment (contract or letter).
- Apply at participating dealerships (RBC says over 4,500). Weekly to monthly payments; no early repayment penalty.
Scotiabank StartRight auto finance
- For permanent residents and foreign workers with 3 years or less in Canada.
- Down payment at least 10% for permanent residents and 25% for foreign workers.
- Up to $75,000 and 60 months; new cars or cars up to 4 years old.
- Dealer-only: Scotiabank says over 4,000 dealerships. Pay off early without penalty.
TD car loans for newcomers
- For permanent residents and foreign workers in their first 5 years in Canada.
- Permanent residents: 0% down, no stated maximum, up to 96 months.
- Foreign workers: 15% of the cash selling price down, up to $75,000, up to 60 months.
- Vehicles from the current model year to 10 years old. Apply at over 3,500 dealerships.
- Bring your PR card or Confirmation of PR, or work permit (IMM 1442), and proof of income.
CIBC and BMO
CIBC offers a Car Loan for Newcomers for people who have lived in Canada 5 years or less, without Canadian credit history: up to $75,000 and up to 96 months, through over 3,200 dealerships. It asks for proof of permanent residence, a valid Canadian driver’s licence and a recent pay stub or employer letter. CIBC car loans in general accept vehicles up to 10 years old and may allow no down payment.
BMO: we did not find a dedicated newcomer car loan on BMO’s Canadian website in October 2026. Its newcomer guide points to general car and personal loans. Ask a branch what applies to you.
What all the programs have in common
- Dealer-based: you apply through a dealership that works with the bank, not at a branch counter.
- No Canadian credit needed, but approval is not automatic. The bank checks your status, income, job and the car.
- Time limits: you must be fairly new to Canada, from 3 years or less (RBC, Scotiabank) to 5 years (TD, CIBC).
- Rates are not published. They depend on the car, term, down payment and any maker promotions at the dealer.
- Early repayment is allowed without penalty at RBC, Scotiabank and CIBC.
Documents most banks ask for
- Proof of status: PR card or Confirmation of Permanent Residence, or a work permit with the expiry date.
- Proof of income: recent pay stubs or an employer letter. Foreign workers often need an employment contract with salary and position.
- A valid driver’s licence (CIBC lists a Canadian one).
- A Canadian bank account for automatic payments.
Have these ready before you visit the dealer, so the application can be sent the same day.
Questions to ask the dealer
- Which banks’ newcomer programs do you work with?
- What rate do I get from each, and for what term?
- What is the amount financed, and the total cost of borrowing?
- Which fees and add-ons are included in the price? Which can I remove?
- Is there a maker promotion (low rate or cash back) on this car, and can I combine it with the newcomer program?
- Can I pay extra or pay off early without a fee?
Get the answers in writing before you sign. If a dealer will not tell you the rate or the total cost, walk away: another dealer can send the same bank program.
How to choose
- Little cash for a down payment and you are a PR? TD’s 0% option may help, but a bigger down payment still lowers your interest.
- On a work permit? RBC and TD ask 15%; Scotiabank asks 25%. Check that the term fits your permit.
- Buying an older used car? RBC, TD and CIBC accept up to 10 years; Scotiabank only up to 4.
- Compare the rate. Ask each dealer for quotes from more than one bank, then compare total interest in the car loan calculator.
More advice in car loans with no credit. Not banking with any of these yet? See the big 5 newcomer offers.
Common questions
Which bank is best for a newcomer car loan?
It depends on your status and the car. TD has 0% down for permanent residents; RBC accepts international students and older cars; Scotiabank has the shortest maximum term. Compare the rate and total cost the dealer offers from each.
Do I need to be a customer of the bank?
Not always, since these loans are arranged through dealerships. Being a customer can help: TD, for example, can confirm your income from its own records.
Are interest rates published?
No. Rates for these programs are set when you apply and depend on the car, term, down payment and any maker promotion.
Can a foreign worker get a 96-month loan?
Usually not. TD limits foreign workers to 60 months and Scotiabank’s maximum is 60 months for everyone. RBC lists 96 months for its program.