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CTL Car Loan review

Get a rate reduction loan with this innovative company to lower your interest rates for every year you make on-time payments.


  • Think about a CTL Car Loan if you want to save money on interest and you’d like to work with a company that practices responsible lending.
  • Pick something else if you’d prefer to get financing from a major bank or you want to work with a company that has a stronger online presence.

Expert review

CTL is a Canadian-owned auto finance company established in 2010 to help Canadians with bad credit get the money they need to purchase a vehicle. It offers rate reduction loans, which allow you to qualify for a lower interest rate every year that you pay your loan back on time.

CTL was acquired by iA Auto Finance back in 2015, which means any CTL Car Loan you take out will be branded under iA Financial Group. That said, you’ll be able to get the same terms for an iA Auto Finance loan as you would with a CTL Car Loan.

First, do I qualify?

To get financing with CTL (also known as iA Auto Finance), you’ll typically need to be the age of majority in your province. You’ll also need to be a Canadian citizen or permanent resident and have a valid Social Insurance Number. While many customers with bad credit can qualify, you may also have to undergo a credit check to be approved for a loan.

What provinces are CTL Car Loans available in?

CTL Car Loans are offered in all Canadian provinces by iA Financial Group, which is one of Canada’s leading car insurance companies. You can easily call in to the customer service line from anywhere in Canada to find out how you can sign up for an iA Financial Group rate reducing loan. Many dealers across the country also act as brokers for CTL Car Loans, so you may end up with one if you choose to go through a dealer to purchase your vehicle.

What makes CTL Car Loans unique?

CTL Car Loans are unique because they offer interest rate reductions for every year that you pay your loan off on time. This will let you pay the principal amount of your loan off faster, which means you’ll be debt-free in a shorter time period. Paying off your debt will improve your credit score and give you a paid-off asset (your vehicle) to borrow against in the future.

When you have an asset to borrow against, you can lower your interest rates for future loans. You’ll also be able to qualify for lower rates with a higher credit score. In this sense, CTL Car Loans allow customers with bad credit to get out of debt while also giving them access to a vehicle.

What types of car loans does CTL offer?

CTL offers a number of loans through its acquisition partner, iA Auto Finance.

  • New car loans. It’s possible to qualify for new car financing so that you can purchase a brand new vehicle from a dealership.
  • Used car loans. You can apply for a smaller loan to buy a used vehicle if you want to avoid the costs of depreciation.
  • Rate reduction loans. CTL offers rate reduction loans, which give you a lower interest rate for every year you make on-time payments.
  • Bad credit loans. You’ll be able to get a loan for a new or used vehicle even if your credit is in bad shape.

What are the benefits of a CTL Car Loan?

  • Decreasing interest rates. Your interest rates will go down for every year that you make all of your payments on time.
  • Socially responsible lender. This lender tries to help customers escape the cycle of debt by providing an option that helps them rebuild their credit.
  • Bad credit doesn’t matter. You can still qualify for a CTL Car Loan even if you have a low credit score, which can be helpful when other financing options aren’t available to you.
  • Helps to rebuild credit. CTL Car Loans will report all of your on-time payments to the credit bureaus so that your credit score goes up faster.
  • Available across Canada. You can access CTL Car Loans from anywhere in Canada since they’re offered through iA Auto Finance (one of Canada’s largest insurers/lenders).

What to watch out for

  • No online application. It’s difficult to know where to apply for a CTL Car Loan directly as they’re mostly offered when you apply for financing through an accredited dealership.
  • Few loan details available. There’s no information about interest rates or term lengths online, so you won’t know what your loan might look like before you call in for a quote.
  • High rates in the beginning. Your interest rates could be higher than 20% in your first year, depending on the state of your credit.
  • No private vehicle financing. You won’t be able to get a CTL Car Loan to help pay for a private sale vehicle as they’re only offered for dealership purchases.
  • Rate reductions aren’t automatic. You’ll need to call in to request an interest rate reduction if you meet all of the eligibility criteria.

How do I apply?

It’s difficult to know how to apply for a CTL Car Loan since there’s no online application. That said, you should be able to get in touch with iA Financial Group to find out how you can apply for a loan directly. You may also be able to apply for financing with a dealership that works as a broker for CTL car loans.

What documents do I need to apply?

It’s not clear what documents you’ll need to apply. That said, it’s likely you’ll need to submit the following paperwork:

  1. Proof of ID. You’ll need to submit a government-issued form of ID as well as your Social Insurance Number.
  2. Proof of income. You could be required to submit supporting documents such as pay stubs, income tax assessments and letters of employment to prove your income.
  3. Credit report. You’ll have to allow CTL car loans to pull your credit report so that it can assess your creditworthiness.
  4. Other financial information. You may need to provide a list of your debts and assets, along with other evidence that you can afford your monthly payments.

How can I qualify for rate reductions?

You’ll be able to qualify for rate reductions 12 months or more into the term of your loan if you meet the following eligibility requirements:

  • You’ve made all of your payments on time and none of them has been returned for any reason
  • Your vehicle hasn’t been in any accidents
  • All of the requirements for your loan agreement have been met

Just keep in mind that rate reductions aren’t applied to your account automatically. To get your rates reduced, you’ll need to email or call iA Financial Group on or after the anniversary date of signing up for your CTL Car Loan to make the request each year.

Compare car loan options from other lenders

Name Product Min. Loan Amount Interest Rate Loan Term Min. Credit Score Requirements
Car Loans Canada
3.99% to 29.95%
12-84 months
3+ months employed, min. income of $2,000/month
Search thousands of vehicles online, including $0 down options, from dealers across the country and get matched with affordable financing options. Auto loans are also available to those with bad credit, consumer proposals and bankruptcies to help rebuild credit.
CarsFast Car Loans
4.90% to 29.90%
12 months - 8 years
Gross income of $1,800/month, 3+ months employed
Browse thousands of vehicles from dealers across Canada and get matched with financing that meets your needs. Apply online to purchase a new or used vehicle and get the vehicle delivered to your door.
Loans Canada Car Loans
0% to 29.99%
3-96 months
Employed for at least 3 months, min. income of $1,800/month
Get access to financing from multiple lenders across Canada through a single application with Loans Canada. Bad credit, CERB and EI borrowers are considered.
Carloans411 Car Loans
1.90% to 19.99%
Up to 72 months
Employed for 3+ months, min. income of $1,600/month
Get connected with suitable lenders through CarLoans411. Finance your next car, van or truck with loans available in amounts from $500 to $50,000. Check eligibility for this loan through LoanConnect.
LoanConnect Car Loans
10.00% to 46.96%
6-60 months
No min. income requirement
Get access to 25+ lenders through LoanConnect's brokerage. Receive pre-approval in as fast as 60 seconds and get your funds in as little as 24 hours.
Auto Arriba Car Loans
8.99% to 29.50%
6-84 months
Currently employed for 3+ months
Auto Arriba offers car loans starting at $3,500 up to $100,000, with as little as a 30 minute loan turnaround time. On a limited number of approved loans, Auto Arriba is currently offering a rebate of the amount of your first scheduled payment 30 days after it has been processed up to a maximum of $500.
Fairstone Secured Personal Loan
19.99% to 23.99%
3-10 years
Have an established credit history and own your home
Fairstone offers secured personal loans up to $35,000.

Compare up to 4 providers

I got the loan. Now what?

Once you have your loan, you’ll need to start making payments on a set schedule. The time you take to repay your loan will be based on how long your term is and how often you make payments. Any payments you make will be automatically debited from your bank account on a specific day of the month.

Once 12 months have passed, you can apply for an interest rate reduction on your loan provided that you’ve made all of your payments on time. You’ll just need to call in to CTL car loans to request this service.

Frequently asked questions

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