Improve how the lender sees you
- Bring the loan current and keep it current for at least two billing cycles.
- Reduce credit card balances below 30% of their limits.
- Avoid new credit applications in the month before you apply.
- Fix errors on your credit report, which are more common than most people expect.
- Keep verifiable proof of income ready, since stability lowers risk pricing.
Change the lender
Dealership financing typically includes a lender reserve, a markup the dealer earns on your rate. Refinancing directly removes that layer, which is why the same borrower can be quoted several points lower within a year.
Change the structure
- Shorten the term, since longer terms carry higher rates.
- Reduce the balance relative to the vehicle value with a small down payment.
- Add a creditworthy co-signer if the file is thin.
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.
Save thousands
Save thousands by refinancing your vehicle anywhere in Canada.
Free to apply, no obligation, and no credit check to pre-qualify.
Frequently asked questions
With a direct lender you can ask, but the biggest gains come from comparing offers rather than negotiating one.
On the same term yes. If the term also changes, compare the total interest, not just the payment.
There is no fixed limit, but refinancing repeatedly resets terms and can be costly. Space it out by at least a year where possible.