Auto Loan Refinancing in Canada

What Is Auto Loan Refinancing?

Auto loan refinancing replaces your existing auto loan with a new loan, potentially with different terms, a different rate, or a different loan term length. Refinancing may be an option if your credit situation has improved, interest rates have changed, or you want to adjust your monthly payment.

When to Consider Refinancing

You might consider auto loan refinancing if:

• Your credit score has improved since your original loan
• Market rates have changed
• You want to reduce your monthly payment
• You want to change your loan term
• Your vehicle's value supports a new loan

What Refinancing Depends On

Refinancing approval depends on multiple factors:

• Your current credit profile
• Your vehicle's current value
• Your remaining loan balance
• Your income and employment
• The lender's refinancing programs

How Refinancing Affects Your Loan

Refinancing can change your loan in several ways:

• Lower interest rate — If your credit has improved or rates have dropped, you may qualify for a lower rate
• Lower monthly payment — A lower rate or longer term can reduce your monthly payment
• Shorter or longer term — You can adjust your loan term to pay off faster or slower
• Cash-out refinancing — In some cases, you may be able to access equity from your vehicle

Keep in mind that extending your loan term may lower your monthly payment but increase the total interest paid over the life of the loan.

We do not guarantee refinancing approval or specific rates. Our application helps connect you with participating dealers that can review your refinancing options.