Current refinancing rates in Canada

Indicative rate ranges

The strongest rates go to prime borrowers refinancing vehicles under seven years old with under 200,000 kilometres. Older vehicles and rebuilt credit move you into a different tier.

• Prime credit, newer vehicle: from 6.93% APR.
• Good credit, mid-age vehicle: roughly 8% to 11% APR.
• Rebuilding credit or older vehicle: roughly 12% to 19% APR.
• Private sale or high-mileage vehicles: priced individually by the lender.

What moves your rate

• Credit score and payment history on the existing auto loan.
• Loan to value: the balance compared with the vehicle value today.
• Vehicle age, kilometres, and whether it is a common, easy-to-resell model.
• Term length. Longer terms carry higher rates.
• Whether income can be verified and how stable it is.

Why two quotes can differ so much

Dealership financing usually includes a lender reserve, a markup the dealer earns. A direct refinance removes that layer, which is one reason the same borrower can be quoted several points lower months later.

Preparing your credit before you apply

Your rate is priced on risk. A few weeks of preparation can move you into a better tier before an application is submitted.

• Bring every account current and keep it that way for two billing cycles.
• Pay down revolving balances below 30% of the limit where you can.
• Avoid opening new credit in the month before you apply.
• Request your free credit reports and dispute any error that is dragging the score down.