Loans For Truck Driving School

Attending truck driving school to get your license is a big investment, both in terms of time and money. In Canada, the average cost of truck driving school ranges from $5,000 to $15,000¹. If you have the money, you can pay the cost up front. But if you need financial assistance, you have options. 

Here we look at how much it costs to become a truck driver in Canada, the different financial options available, and how to qualify. 

Key Points: 

• Truck driving school in Canada typically costs roughly $5,000 to $15,000¹, depending on the province and license type.
• Additional fees should also be considered for exams, supplies, and medical tests.
• Financing options include personal loans, lines of credit, student loans, and government or provincial programs, with private lenders offering more flexibility for bad credit or newcomers.

How Much Does Truck Driving School Cost In Canada?

While the average cost of truck driving school in Canada ranges from $5,000 to $15,000, the price can vary depending on where you go to school and the type of license you get. 

For example, in Ontario, the two main classes of trucking licenses include the AZ and DZ. With an AZ license, you can drive straight trucks or tractor-trailers, and tow vehicles with a gross weight of 4,600 kg. An AZ license costs $10,000², on average.

If you want to drive a delivery or dump truck, you’ll need to get your Class DZ license. This allows you to operate vehicles over 11,000 kg or vehicles towing a trailer that doesn’t exceed 4,600 kg. On average, it will cost you up to $6,000³ to get a DZ license.

Additional Expenses To Consider

In addition to training costs, there are other miscellaneous fees⁴ to consider, including:

• License Fee: A five-year license in Ontario costs $90.00. 
• Books & Supplies: To support your studies, you’ll need to purchase different textbooks and handbooks. 
• Knowledge Tests: There are fees associated with different tests you need to take, including a knowledge test and the commercial road test. 
• Medical Exam: Some licenses require a medical exam and depending on your practitioner, the cost can range from $50 to $150. 

Types Of Loans To Finance Truck Driving School

Various financing options are available to help you fund the cost of truck driving school in Canada:

Personal Loans

With a personal loan, you can borrow a lump sum of money and pay it back over a certain period. Personal loans typically range from $500 to $50,000, and offer terms between six and 60 months. 

With predictable payments and a lower interest rate than a credit card, a personal loan can be a good funding option for truck driving school.  

Lines Of Credit

A line of credit functions similarly to a credit card; you can access the credit up to your pre-set limit, pay it back, and then access it again. 

A line of credit typically comes with a variable interest rate, and you only pay interest on the amount you use. You can use a line of credit to finance truck driving school, pay it back, and then reuse the money to reach your next goal.

How Do Truck Driving Students Qualify For A Loan? 

To qualify for a loan, most lenders assess the following: 

• Income: Lenders will want to confirm that you have a regular source of income or meet minimum annual income requirements. 
• Credit Score: A hard credit pull helps lenders determine if you meet their credit score criteria. A higher credit score provides access to a larger variety of loans with better terms.  
• Debt-To-Income Ratio: Your debt-to-income ratio measures your monthly income relative to paying off debt. A high DTI can lower your chances of qualifying for a loan. 
• Canadian Residency: You must be a Canadian resident, and be the age of majority in your province or territory. 

How To Apply For A Loan For Truck Driving School

If you’re ready to apply for a loan and take your career to the next level, follow these step-by-step instructions: 

Step 1: Assess Your Finances

Before you start looking for loans, review your finances to see where you stand. By knowing your income, debt-to-income ratio, and credit score, you can focus on applying with lenders whose minimum requirements you meet. 

Doing a rough estimate of how much you actually need for truck driving school can help you to avoid over-borrowing. This way, you have less debt to pay back when you graduate. 

Step 2: Compare Lenders

Comparing multiple lenders can help you find the best deal and save money. Before borrowing, compare lenders on factors such as interest rate, repayment terms, fees, and the lender’s reputation. You can use Loans Canada’s online platform to compare a wide range of lenders before applying. 

Step 3: Apply 

Now, you’re ready to complete a loan application. To save time and make the process as seamless as possible, have your paperwork ready. Lenders will typically ask you to provide the following documents:

• Government-issued photo ID
• Proof of address
• Proof of income (recent pay stubs, bank statements)
• Letter of employment
• Statements of assets and liabilities

To avoid the paperwork, some lenders use instant bank verification (IBV). This technology enables lenders to quickly verify your financial details without the paper documents. You can check with your lender to see if this option is available. 

Step 4: Get Funded

How quickly you get your money depends on the type of lender you use. With an online lender, it’s possible to access your funds in as little as 24 hours. 

Traditional lenders, like banks or credit unions, may take a few days or longer to provide funds.

Can You Use A Student Loan To Cover Truck Driving Training?

It’s possible to use a student loan to cover your truck driver training, but eligibility and availability may vary by province, license type, and the school. 

For example, you can get your AZ certification by taking the AZ Truck Driver Training Program at College Boreal at several locations in Ontario, including Sudbury, Timmins, and Windsor.  This specific program is eligible for the Ontario Student Assistance Program (OSAP). 

Check with the specific program or educational institution if student loan funding is available.

Are There Government Funding Options For Truck Driving School? 

Some provinces have province-based financial options to help support you in truck driving school. 

For example, Alberta offers the Class 1 Learning Pathway Grant Program, which is designed to support the province’s commercial driving industry. 

If you’re a newcomer to Canada, you can check out Windmill Microlending, a national charity that provides low-interest rate loans up to $15,000 to help you get your training. 

Risks & Considerations Before Applying For A Loan For Truck Driving School

Thinking through the possible risks and challenges of taking on a loan for truck driving school can help you prepare for the future. Here are a few considerations to ponder: 

• Unaccredited/Unlicensed Schools: Before you pay for your training, research the school to ensure it is reputable and accredited. 
• Taking On Too Much Debt For Training: To avoid taking on too much debt, estimate how much your training, materials, and testing will cost and only take on a loan for what you need. 
• Missing Payments: If you miss a loan payment, this can have a negative effect on your credit score. A poor credit score will make it harder to qualify for a loan in the future. 

Other Factors To Consider

Before you apply for your training and a loan to fund it, make sure you understand what you want to achieve and what it takes to get there. 

Research The Types Of Licenses 

There are many truck licenses. Before you apply for your training, make sure you know which one you want. Some available licenses include: 

• Class 1/AZ: For tractor-trailers of any weight, air brakes (Z endorsement is required), and trucks pulling trailers over 4,600 kg. 
• Class 3/ DZ: For straight-body trucks up to 11,000 kg, dump trucks, and tow trucks.
• Class 5/ G: For lighter commercial vehicles, including any standard car or truck under 11,000 kg.

Understand License Requirements

In addition to your training, there are other requirements you need to meet to get your license. For instance, you may need to take medical, eye, and training exams.  

Think About Your Future

What do you want to do after you get your license? Are you planning to work for a trucking company, or do you want to buy your own truck and become an owner-operator? If you want to own your truck, you’ll likely need to look into truck loans to finance your fleet. 

How Much Do Truck Drivers Make In Canada?

The average hourly rate for truck drivers in Canada is $27.75, according to data from Indeed.com. However, pay can vary based on factors like experience, location, and whether you’re doing long-haul or local trips. On average, long-haul truckers make $40.27⁵ per hour, and local drivers make $25.83⁶.

Additional Reading

Freightliner Truck and Big Rig Purchasing & Financing

Kenworth Truck And Big Rig Purchasing & Financing

Peterbilt Truck And Big Rig Purchasing & Financing

Final Thoughts

If you need a loan to help cover the cost of truck driving school, there are options available, including personal loans and credit lines. Before you apply for a loan, make sure you have a plan in place to repay your debts once your training is complete. 

FAQs

 References

¹ Insurance Bureau of Canada & MNP LLP. (2024). Commercial trucking insurance and education [PDF]. Insurance Bureau of Canada.

² Windmill Micolending. (2023, August 18). How to Get an AZ License in Ontario. Windmill Micolending

³ Windmill Micolending. (2024, January 15). How to Get a DZ License in Ontario. Windmill Micolending.

⁴ DriveTest. Pricing for Driver Examination Services. DriveTest. 

⁵ Indeed. Long haul driver salary in Canada. Indeed.

⁶ Indeed. Local driver salary in Canada. Indeed.