Refinance Your Car Loan in Ontario

What Does It Mean to Refinance a Car Loan?

Refinancing a car loan means replacing your existing auto loan with a new loan, potentially with different terms, a different interest rate, or a different loan term length. The new loan pays off your existing loan, and you begin making payments on the new loan under its terms.

When to Consider Refinancing Your Car Loan

You might consider refinancing your car loan if:

• Your credit score has improved — If your credit has improved since your original loan, you may qualify for a lower interest rate
• Market rates have changed — If interest rates have dropped since you took out your loan, refinancing may secure a lower rate
• You want to lower your monthly payment — A lower rate or longer term can reduce your monthly payment
• You want to change your loan term — You can adjust your loan term to pay off faster (shorter term) or slower (longer term)
• Your vehicle's value supports a new loan — If your vehicle has retained value, refinancing may be an option

What Refinancing Depends On

Refinancing approval depends on multiple factors:

• Your current credit profile — Lenders review your credit to determine eligibility and rate
• Your vehicle's current value — The vehicle must be worth enough to support the new loan
• Your remaining loan balance — The amount you still owe on your existing loan
• Your income and employment — Stable income supports your refinancing application
• The lender's refinancing programs — Different lenders have different refinancing criteria

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, reducing both your monthly payment and total interest
• 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 (less total interest) or slower (lower monthly payment)
• 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. Use our car loan calculator to compare different scenarios.

How to Apply for Car Loan Refinancing

Complete our secure online application and indicate that you have an existing auto loan. You will provide information about your current vehicle, existing loan, employment, and residence history. The application takes approximately 2 minutes. After submitting, our team reviews your information and connects you with a participating dealer that can assess your refinancing options.

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