Getting pre-approved for a car loan before visiting a dealership is one of the best financial decisions a Canadian buyer can make. Here is a detailed look at the best banks, credit unions, and online lenders for auto loans in Canada in 2025 — including rates, pros and cons, and who each lender is best for.
| Lender | New Car Rate | Used Car Rate | Best For |
|---|---|---|---|
| Meridian Credit Union Top Pick | 5.5–7.9% | 6.9–10% | Ontario members |
| Desjardins Top Pick | 5.5–8% | 7–10.5% | Quebec + national |
| RBC Royal Bank | 7.19–8.99% | 8.19–10.99% | RBC customers |
| TD Auto Finance | 6.99–9.49% | 8.49–11.99% | TD customers |
| BMO | 7.25–9.25% | 8.25–11.25% | BMO customers |
| Scotiabank | 7.0–9.5% | 8.5–12% | Scotia rewards customers |
| CIBC | 7.19–9.49% | 8.49–11.99% | CIBC customers |
| iA Auto Finance | 6.9–11% | 8.9–15% | Fast approval, any credit |
| CarsFast | 6.9–13% | 8.9–18% | Bad credit options |
Canada's credit unions consistently offer the lowest auto loan rates of any lender category. Being member-owned, they pass savings to members in the form of lower loan rates. Notable options:
You typically need to become a member (usually a $5–$25 one-time deposit) to access credit union loans. Apply here first.
RBC is Canada's largest bank and offers competitive auto loans to existing customers, especially those with good credit and RBC accounts. Rates are generally 0.5–1% lower for existing clients vs new customers. RBC also has a relationship with some dealerships for dealer-arranged financing.
TD's auto lending arm has relationships with thousands of Canadian dealers, making it a common source of dealer-arranged financing. You can also apply directly at a TD branch or online for a vehicle loan at competitive rates.
iA Auto Finance is a specialty auto lender that works with a broad range of credit profiles, from good to challenged. Available nationally through dealers and directly online. Good option for buyers who have been declined by major banks.
CarsFast is an online broker that connects applicants with multiple lenders simultaneously. Useful for comparison shopping and for buyers with lower credit scores who benefit from having multiple lenders bid for their business.
| Your Situation | Best Lender Type |
|---|---|
| Excellent credit (720+), existing banking relationship | Your bank or credit union first |
| Good credit (680–720), want lowest possible rate | Credit union (shop 2–3) |
| Fair credit (620–680) | iA Auto Finance or online broker |
| Poor credit (under 620) | Specialty subprime lenders + co-signer |
| Buying from private seller | Personal loan from bank or CU |
| New EV (manufacturer promo rate available) | Compare dealer promo vs bank first |
Getting pre-approved is straightforward at most Canadian banks and credit unions:
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Get KOHO Free — Use Code 45ET55JSYALast updated: March 2025. Rates are approximate and vary by applicant profile and market conditions. Always confirm directly with lenders.