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TheRFMan
Member
Quick question: how long are approvals valid for? Does it depend on the back the provides the financing or are they all the same?
Thanks!
Thanks!
Need advice and suggestions of all members here. I am new to Canada and have moved here with new job last month. My credit score is ranging between 630-660 as per transunion score on BMO and RBC where I have checking account. I don’t have any debt and have annual salary in excess of 6 digits. I applied for a credit card recently and it was denied. I am interested in buying M3 and I am not sure if would be approved of the loan. Would really appreciate your inputs. Thanks
TheRFMan
Member
It's hard to say without putting in an application. Your most significant issue is probably not having any credit history in Canada. You are so new to Canada that there is no data on you, and your employment history is very short. You are likely not a credit risk at your income level, but without any data to show it, lenders will be cautious. I'm not sure about BMO and RBC, but I know that some apps that report credit scores (Borrowell and Capital One come to mind) will tell you which factors are influencing your credit score the most.
You may have a better chance for a car loan vs. an unsecured credit card since the car itself acts as a security for the loan, but even if you are approved, they are likely going to ask for a significant down payment up front.
While it will not be of immediate help to you, there are some credit cards that are specifically designed for people that are building up a credit history. You may need to provide a deposit up front for it, but it will at least post something on your credit file and you'll start to exist in the system.
As counterintuitive as it may seem, not having any debt isn't necessarily a good thing. You need to have some credit in order to show you make your payments regularly.
Any idea how much down payment would make the banks comfortable to approve my financing? Also I have an awesome credit score in my home country. Does Canadian banks accept credit record from other countries? I have got a capital one secured card by putting in deposit. But it will take few months to build history through the credit card and I want a new car like immediately.
TheRFMan
Member
I assume it depends on how expensive the car you're buying is.I remember seeing a post (might be buried in this thread) where someone that didn't have much credit history was asked to provide $20,000 down. I vaguely remember that was for a much more expensive Model X however.
Perhaps from the USA, since we use the same credit rating agencies. Other than that, I wouldn't count on it.
Thanks- Do you think lease would be easier to get approval compared to loan. Any inputs there.
I am not in canada, but in the US, a lease is HARDER to get approval for than a loan. A persons credit worthiness (or not) doesnt change between those two programs, but what does change is the fact that you are asking someone to let you borrow a car, make payments on it, then give it back (lease) vs buy a car and make payments on it.
Leasing a car normally has lower drive offs, and requires better credit score than a loan. A loan you can simply put enough money down for someone to give you the loan. That could be 10-20-even 40% but eventually someone will loan you the money if you put enough down.
A lease is different
I'm a little behind (ordered years ago) but locally banks prefer that the dealer (in this case Tesla) reach out to the bank's central office for dealer level financing.
That said, the rep will have the best understanding of the current process right now.
Great thanks! I'm hoping to go back this week for a final test drive of both so will be sure to ask him in person.
CanadianRob
Member
Approved 2 days ago on M3P at 2.5% 96 Months through BMO
I don't have the best credit history either (due to a separation) if that gives people some hope.
I don't have the best credit history either (due to a separation) if that gives people some hope.
TheRFMan
Member
Wow... looks like rates have dropped even further. Can you confirm how long the approval is valid for?
CanadianRob
Member
I did it through the Tesla site, it has the details from BMO, but I don't see anything about how long the approval is valid. On another note, all my personal accounts are through BMO, so that worked out nicely.
Where are you located? Ontario?
I still have 2.6% from RBC, 2.5 would be nice, anyone in BC see the BMO rate?
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