Can I use my home loan to buy a car?

We’re a little tight on money right now, but we need a second car for my partner’s new commute. Can I use my home loan to buy a car?

Answer
You can use your home loan to buy a car. Now, whether it’s worth it or not will be up to you and your partner’s discretion. It can be a much more risky way to purchase a car than using a traditional auto loan.
If you can’t make the auto loan payment, not only will you lose your car, but your lender can foreclose your house. Also keep in mind that cars depreciate, and the long-term nature of the home loan means you’ll be paying way too much money for the value of the car.
With all of that said, there are some benefits, like flexible terms and potentially lower interest rates.
While you can use your home’s equity to buy a car, whether you should or not is a personal decision and one that should be made with care. If you do decide to go through with it though and want some help saving money on your new car’s insurance, Jerry is here to help. Once you download Jerry, just answer a handful of questions that will take you roughly 45 seconds to complete and you’ll immediately get car insurance quotes for coverage similar to your current plan. Jerry customers save an average of $879 a year.
Will Baldwin
Answered on Dec 03, 2021
Will Baldwin is a graduate of Ryerson’s School of Journalism with three years of experience writing and freelancing for multiple publications including The Globe and Mail. With a deep interest in geography, economics, and politics, he has come to be extremely interested in the relationship of personal finances and culture with the auto industry as one of the forefronts of his interest. When not writing, he’s an avid sports fan who splits his time between watching too much basketball and having his heartbroken by the New Orleans Saints. Will is based in Toronto, Ontario.
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