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How to get a car loan on ODSP

Compare lenders and find out how you can get approved for a car loan on ODSP (Ontario Disability Support Program). 

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By

Claire Horwood

Updated

If you’re getting money from the Ontario Disability Support Program (ODSP) and you want to take out a car loan, you have options. Find out more about how you can qualify for financing on ODSP, and learn which loan might be the best fit for your personal financial situation.

What is ODSP?

ODSP is a government-sponsored program that offers financial assistance to those living with physical or mental disabilities in Ontario. This program helps to cover the costs of basic needs (like food, clothing, shelter and prescriptions) for people with significant disabilities that impact their day-to-day functioning.

To enroll in the program, you’ll need to go through a medical assessment and work with a caseworker to manage your file. You’ll also need to be able to show that you have financial needs that aren’t being fulfilled by your own income.

How can I apply for ODSP?

You can apply for ODSP online using a simple application. You’ll need to be at least 18 years old and residing in Ontario to meet the basic eligibility requirements. From there, you’ll need to provide sufficient documentation to prove that you require financial assistance and have a disability that restricts your daily life.

Can you own a car on ODSP in Ontario?

Yes, someone receiving ODSP can have one motor vehicle valued at any amount without it impacting their eligibility for the program. If another person in the same household requires a second vehicle, specifically to get to and from work, then you’re allowed to have a second vehicle as long as it’s valued at $15,000 or less.

Can I get a car loan on ODSP?

Yes, it’s possible to get a car loan while on disability payments, but it will depend on which lender you go with. Some lenders will only accept your paycheque as proof of income, while others will accept social assistance benefits and other less conventional forms of income.

Your lender will typically look at factors like your how much money you have coming in every month, any debts, credit rating and employment history to figure out how much money it wants to lend you. For the best results, you’ll want to apply with a lender that accepts ODSP as a form of income. Our pick for a lender where you can apply for a car loan while on ODSP is:

LoanConnect Car Loans
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Accepts ODSP applicants: LoanConnect Car Loans

$500 – $50,000
Loan amount
4.99% – 46.96%
APR
72 - 84 months
Term
You can apply for a LoanConnect Car Loans even while receiving ODSP. Its search engine will show you lenders where you'll have the highest chance for approval. Pre-approval in as little as 60 seconds.


Get access to 25+ lenders through this brokerage. Get your funds in as little as 24 hours.
  • Easy application
  • More choice
  • Free service
  • Transparent terms
  • High loan amounts
  • Quick deposits
  • No collateral required
  • Few eligibility requirements
  • Limited providers
  • Personal info required
  • Fewer options for bad credit
Loan amount $500 – $50,000
APR 4.99% – 46.96%
Term 72 - 84 months
Interest Rate Type Fixed
Min. Credit Score 550
Fees Varies by lender, loan type and province
Origination Fee N/A
Turnaround Time Get pre-approved in as little as 60 seconds, and receive money in as little as 24 hours from the time of your application.

Types of car loans for people on disability

There are a few different types of car loans you might benefit from if you’re looking to purchase a vehicle while receiving ODSP.

  • Secured loans. These loans require you to put up some form of collateral (like your house or vehicle) to secure your payments.
  • Unsecured loans. Unsecured loans don’t require collateral but typically base your eligibility on your credit score and often come with higher interest rates.
  • Guarantor loans. You may be able to have a friend or family member co-sign your loan so that you can qualify for more money and get better rates.

How can I get approved for a car loan on ODSP?

To get a car loan on disability, it’s important to maintain a “good” credit score. Apply for your credit score at least once a year to make sure that your credit is in good standing before you apply for a loan.

  • Pay your bills on time. Make sure you make at least the minimum payment on your bills every month, and avoid bouncing automatic withdrawals wherever possible.
  • Find a cosigner. You might have better luck getting a decent interest rate on your loan if you ask a friend or family member with good credit to cosign with you.
  • Make a plan for repayment. Put together a list of your debt, income and expenses each month to show your lender you can afford to make your payments.
  • Apply for one loan at a time. Take your time to do your research and apply for the best loan to avoid damaging your credit score.
  • Pay off your debts. Lighten your debt load to set yourself up to borrow more money at better rates in the future.

How to apply for a car loan on disability

The first place to start when applying for a car loan while on disability payments is to check your credit score. Apply online for a copy of your credit score through Equifax or TransUnion. Generally, a score of 650 is considered a “good” credit score, which would also give a good chance to be approved for a car loan even while on ODSP.

  • Find a lender that accepts ODSP as income. Look for a lender that will accept social assistance payments like ODSP as income.
  • Compare lenders. Shop around with at least 3-4 lenders to find the best interest rates, fees and repayment terms for your loan.
  • Make sure you’re eligible. Make sure that you’re the age of majority in your province and you meet other eligibility requirements to qualify for a car loan on ODSP.
  • Submit your application. Make sure to fill out your application carefully to avoid mistakes that may affect your ability to qualify.

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