Ontario Driver's Licence Rules for Newcomers (2026): What They Mean for Your Car Loan

New Ontario residents can drive on a valid foreign licence for 60 days. What happens next depends on where your licence is from, and since July 1, 2026, the rules for drivers from most countries are stricter. Here's what to expect and how it affects buying a car.

Short answer: When you become an Ontario resident, you can drive on a valid licence from another province, state or country for 60 days. If your licence is from a place with an exchange agreement, you can usually swap it for an Ontario licence. If it isn't, since July 1, 2026 you can get at most 12 months of driving experience credit and must pass both the G2 and G road tests, at least 12 months apart. Your licence affects whether you can insure and take delivery of a financed car, so sort it out early.

The 60-day rule

Ontario lets new residents drive on a valid out-of-province or foreign licence for 60 days after moving here. After that, you need an Ontario driver's licence. Once you have one, you can no longer drive in Ontario on your foreign licence.

If your licence can be exchanged

Ontario has exchange agreements with every Canadian province and territory, all U.S. states, the Canadian Armed Forces, and these countries:

Australia, Austria, Belgium, Croatia, Denmark, France, Germany, Great Britain, Hungary, the Isle of Man, Japan, Kosovo, New Zealand, Northern Ireland, the Republic of Ireland, South Korea, Switzerland, Taiwan and Ukraine.

To exchange for a full Class G licence, you generally need to show at least two years of full-class driving experience within the last three years. With less experience, your licence is exchanged as a novice class and you finish Ontario's graduated licensing.

You can't exchange a learner's permit from anywhere.

If your licence can't be exchanged (most countries)

If your licence is from a country not on that list, such as India, the Philippines, China, Pakistan, Nigeria or Brazil, the process is longer. Since July 1, 2026:

1. You can receive up to 12 months of driving experience credit by showing your valid, original foreign licence. To be credited for experience that your licence doesn't show, you also need an official authentication letter from the issuing authority or its embassy, consulate or high commission, issued within the last six months.
2. You pass a vision test, a knowledge test and the G2 road test.
3. You wait at least 12 months before taking the G road test. Foreign experience can't shorten this wait.

If your licence or letter isn't in English or French, you need a translation from an approved translator. The translation must be dated within six months of your application.

Since May 11, 2026, applicants for a Class G licence also declare that Ontario is their primary residence and that they're legally present in Canada.

G1 vs G2: what you can actually drive

• G1: You can't drive alone. You need an accompanying fully licensed driver, and there are other restrictions, including no driving between midnight and 5 a.m. and no driving on most 400-series highways.
• G2: You can drive alone, with some conditions.
• G: Full licence.

Why your licence matters for your car loan

• Delivery: a dealership needs to hand the car to someone who can legally drive it away.
• Insurance: you must insure a financed car, and insuring it in your own name generally requires at least an intermediate licence. RBC notes that while a loan may be possible on a learner's permit, you won't be able to insure the car in your name until you have an intermediate licence.
• Your rate and premium: lenders and insurers both look at licence class and driving history. Credited foreign experience can help with insurance, so bring your authentication letter to your insurer too.

The practical takeaway: if you're from a non-exchange country, book your knowledge test soon after arriving and get to G2 before you plan to buy. Use your first 60 days to gather your authentication letter and any translations.

How Affordrive uses your licence information

When you pre-qualify, we ask which licence you have so we can match you with a dealership that can work with your situation. If you don't have a licence yet, you can still see your estimated numbers. For financing details, see our guides to car loans on a work permit and car financing for newcomers.

Frequently asked questions

How long can I drive in Ontario on a foreign licence? For 60 days after becoming an Ontario resident. After that, you need an Ontario driver's licence.

Which countries can exchange their licence in Ontario? All Canadian provinces and territories, all U.S. states, the Canadian Armed Forces, and Australia, Austria, Belgium, Croatia, Denmark, France, Germany, Great Britain, Hungary, the Isle of Man, Japan, Kosovo, New Zealand, Northern Ireland, the Republic of Ireland, South Korea, Switzerland, Taiwan and Ukraine.

What changed for foreign drivers in Ontario on July 1, 2026? Drivers from countries without an exchange agreement can now receive at most 12 months of foreign driving experience credit and must pass both the G2 and G road tests, with at least 12 months between them.

Can I get a car loan with a G1 licence? Sometimes, but it's difficult in practice: you can't drive alone, and you generally can't insure the car in your own name until you have an intermediate licence. Most buyers are better off getting their G2 first.

Does foreign driving experience lower my insurance? It can. Insurers may consider documented driving history from abroad, so keep your authentication letter and ask each insurer how they treat it.

Sources

• Ontario: Exchange an out-of-province driver's licence (updated September 23, 2026)
• DriveTest: Licence exchanges and foreign licence applications
• Ontario: Get a G driver's licence (new drivers)
• RBC: How to get a car loan as a newcomer in Canada

Licensing rules change. Always confirm the current requirements with ServiceOntario or DriveTest. This guide is general information, not legal advice.