Types of BMO car loans
- Auto loans
If you are looking to finance the purchase of a new or used car in Canada, an auto loan from BMO can help you get behind the wheel faster. Available through BMO’s partner dealerships, a BMO vehicle loan is easy to apply for. Once you complete your car loan application action right at a dealership, BMO experts will process it and make a decision on it.
Auto loans from BMO are available for up to eight years at both fixed and variable rates. The actual rate you qualify for is determined upon application and depends on your borrower profile. If your credit score is 660 and higher, you are more likely to get a loan at a competitive rate.
BMO offers flexible repayment schedules for its auto loans, so you can make your loan payments on a weekly, bi-weekly, semi-monthly, or monthly basis. If you need a break, you have the option to defer a monthly payment two times each year.
How to apply for a BMO car loan?
To apply for a BMO car loan, ask a dealership if they offer BMO financing. If yes, you can apply for a loan right where you are shopping for a car. Complete an application at a dealership and wait for a response from a BMO expert.
Requirements
To qualify for a BMO auto loan, you must be a Canadian resident at the age of majority in your province or territory. When applying, take the following documents to a dealership with you: a letter from your employer, your recent pay stubs, and recent T4/T4A slips or T1 income tax return. If you reside in Quebec, have a letter from your employer, your recent pay stubs, and RL1 or Revenue Quebec TP1 with corresponding notice of assessment.
Pros and cons
BMO car loans have definite advantages, such as:
- Flexible repayment schedules
- Both fixed and variable interest rates available
- An option to skip a monthly payment up to twice a year
- An opportunity to update payments as needed
- Easy loan management through online banking
- Penalty-free early prepayment
Still, there are disadvantages to keep in mind:
- Availability of car loans through dealerships only
- The lack of transparency about interest rates
- A good to excellent credit score required
How to make a payment?
There are several ways to make a BMO auto loan payment:
- Through online, mobile, or telephone banking
- In person at your local BMO branch
- At a BMO ATM