Fairstone is a leading provider of responsible loan solutions with nearly 100 years of lending experience in Canada. Fairstone offers unsecured and secured personal loans to near-prime borrowers for debt consolidation, unexpected expenses, home improvement projects and more.
In this Fairstone review, we will look at what it offers, what it requires, and how borrowers can benefit from it.
Key Takeaways
- Fairstone is a responsible lender serving the near-prime market, offering unsecured and secured personal loans.
- Fairstone offers loans from $500 to $50,000, with loan terms from 6 to 120 months and interest rates ranging from 19.99-39.99%.*
Who is Fairstone?
Fairstone is a subsidiary of Fairstone Bank of Canada, with a rich legacy of lending in Canada. They’re deeply rooted in communities big and small, with a team of more than 900 Lending Specialists in a network of 250 branches across the country.
Fairstone focuses on understanding each customer’s unique situation and tailoring loan options to fit their needs and budget. Whether you get a loan online or at a branch, you’ll receive the same personalized service.
With a simple loan application, borrowers can start with a no-obligation quote to find out how much money they could qualify for, finalize the application in person or online, and receive their money in as little as 24 hours.
How To Apply For a Fairstone Loan
Below are the steps to apply for a personal loan at Fairstone.
- Get a loan quote: Go to Fairstone.ca and click the “Get a Loan Quote” button. Enter a few simple details and find out how much money you could qualify for – no-obligation, no impact to your credit.
- Connect with a Lending Specialist: A Fairstone Lending Specialist will be in touch to customize your loan details and answer any questions you may have.
- Receive your money quicky: Finalize your loan application online or at a branch and you could have your money in as little as 24 hours.
Fairstone Personal Loans
When it comes to personal loans, Fairstone offers two types: secured and unsecured. Below are the main features of Fairstone’s secured and unsecured personal loans.
| Feature | Unsecured Loans | Secured Loans |
| Loan amounts | $500 to $25,000 | $5,000 to $50,000 |
| Loan terms | 6 to 60 months | 36 to 120 months |
| Interest rates | 26.99-39.99%* | 19.99-24.49%** |
| Secured | None | Yes |
| Payments | Fixed | Fixed |
| Fees | None | Vary by province |
| Prepayment penalties | None | Yes |
| Homeownership required | Not required | Yes |
| Time to process | < 1 day | 3+ days (varies by location) |
| Guarantee | 14 days | 3 days |
| Payday loans, installment loans, and lines of credit |
Fairstone offers a range of loan products that fit different customer needs and lifestyles. If you plan to apply for a personal loan from Fairstone, see below what loan products would work best for you.
Unsecured Personal Loans
An unsecured personal loan is a type of loan that doesn’t require collateral, so it’s not backed by the equity in an asset, such as a house. It is backed by a signed contract and the creditworthiness of a borrower.
At Fairstone, unsecured personal loan amounts range from $5,000 to $50,000, with loan terms of 6 to 60 months, and interest starting at 26.99%.* Funds are often available within 24 hours. Plus, there are no prepayment penalties or application fees.
Secured Personal Loans
A secured personal loan, also referred to as a home equity loan, is a type of loan that gives you access to more money at a lower interest rate and lower payments, compared to an unsecured loan.
Because it’s backed by an asset, like the equity in your home, the loan terms are more flexible. It is best for homeowners who want to use a secured loan for unexpected expenses, home repairs, or debt consolidation.
At Fairstone, secured personal loan amounts range from $5,000 to $50,000, with loan terms of 36 to 120 months, and interest starting at 19.99%.**
Home Equity Loans
Homeowners can use a home equity loan to tap into their home equity, whether through a secured personal loan, second mortgage, home equity loan of credit (HELOC), or cash-out refinance.
The amount of equity in your home is the basis for these loans, which you can use for home improvements, debt consolidation and others.
Auto Loans
Fairstone offers used car loans to provide you with upfront funds to buy a vehicle while paying the loan back over a specified loan term.
The term for a used car loan ranges from 6 to 60 months. With an auto loan from Fairstone, you can buy any vehicle with a model year 10 years old or less.
Point-of-Sale Financing
Point-of-sale financing from Fairstone offers purchase financing at in-store or online retail partners. Financing your purchase lets you buy now and pay later or cover unexpected purchases. You can apply for Fairstone financing in-store with a sales associate or online through your device.
Fairstone’s point-of-sale financing retail partners include companies in the following industries: auto products and services, building supplies and hardware, corrective medical procedures, dental, electronics, furniture and appliances, home and garden, and veterinary.
Best Buy is one of Fairstone’s point-of-sale financing partners. Fairstone Best Buy financing offers a buy-now-pay-later option and flexible financing plans. Once you get approval for Fairstone financing, you can finance your purchase online or in-store.
Automobile Financing
Automobile financing at Fairstone is provided by Eden Park, an Ontario-based vehicle financing provider with a nationwide network of automobile dealers. Eden Park qualifies various applicants, including those with poor credit.
It structures its car loan payments to be manageable for borrowers over the loan term. It regularly reports to credit bureaus to help clients build or rebuild their credit.
Fairstone Loan Requirements
Applying for a personal loan from Fairstone requires that you meet the following requirements:
- Be a Canadian resident or citizen
- Be the age of majority in your province
- Have an established credit history
- Have a personal use for a loan
- Able to pay back your loan in installments
To complete your Fairstone loan application, you will need to present the following documents and information:
Personal Identification
To prove your identity, you will be required to provide one piece of primary identification:
- Valid Canadian Driver’s Licence
- Canadian Permanent Resident Card
- Valid Canadian Passport
- Canadian Citizenship Card
- Valid Non-Driver Identification Card, where applicable
Or, provide two pieces of secondary identification:
- Government-issued Canadian birth certificate
- Certificate of Indian Status Identity Card/Indian and Northern Affairs Canada Card
- Current Credit Card or Debit Card with an embedded photo
- Military ID Card with accompanying government-issued photograph
- Current bank statement
- Utility bill from the last 30 days containing your full name and current street address
- Notice of Assessment
- Provincial Health Card
Employment and Income Verification
Present one of the following to verify your employment and income:
- Current pay stub that is:
- Dated within 30 days or future-dated no more than 7 days
- Shows year-to-date income
- Shows CPP and EI deductions
- Shows the company name and logo
- Latest T4/T4a
- Canada Pension Plan (CPP) statement dated within the last 12 months
For self-employed individuals, you will need to provide CRA Notice of Assessments from the past 2 years*** and one of the following:
- Business License
- 411 or Yellow Page Listing
- Bank statement showing business name
***Residents of Quebec must also provide the Notice of Assessment issued by Revenue Quebec.
Housing Information
To verify your rent, you will be required to provide one of the following:
- Current lease agreement (within 5 years)
- Any of the following dated within 3 months:
- Rent receipt
- Cancelled cheque
- Bank statement or electronic fund transfer
- Typed or hand-written letter showing the rent amount and the landlord’s signature
To verify your mortgage, you will need to provide one of the following:
- Latest mortgage statement that includes:
- Current balance
- Monthly payment
- Payment status
- Your name and address
- Annual mortgage statement dated within 30 days
Pros and Cons of Fairstone
Below are the pros and cons of using the services of Fairstone.
Pros:
- Nearly 100 years of lending experience
- Personal loan amounts up to $50,000
- Unsecured and secured loan options
- Flexible loan terms
- Simple online application
- Fast availability of funds
- Less stringent credit score requirements compared to traditional banks and credit unions
Cons:
- Steep interest rates compared to traditional banks and credit unions
- Secured personal loans require homeownership
- Added charges like home valuation, administration fees, and title examination for secured personal loans
Is Fairstone Good and Legit?
Fairstone is a legitimate company with 250 branches across Canada. Evidence of its legitimacy is its nearly 100 years of operation.
Fairstone offers several options for customers to contact them:
- Live online chat
- Facebook chat
- Phoning a Lending Specialist at 800-995-2274
- Branch Locator
Additionally, the Better Business Bureau verifies Fairstone Financial as a reputable Canadian lender, employer, and community partner. It has an A+ rating and a 98.5% customer satisfaction rate (in 2022).
Fairstone Resources
Not sure where to begin? Fairstone offers a range of financial tools and resources aimed at improving its services and helping customers make informed borrowing decisions, including:
- Loan calculators and tools so you can explore loan options, calculate loan payments, and plan your budget.
- Online account management to view your loan balance, keep track of payment deadlines, and make payments on your loan.
- Blog articles on handling debt, budgeting, saving, and tips for staying in control of your loan.
Fairstone Loan Alternatives
If you wish to seek options other than Fairstone, there are two alternatives worth considering: Loans Canada and LoanConnect.
Loans Canada
| Feature | Details |
| Loan amounts | $300 to $50,000 |
| Loan terms | 3 to 60 months |
| Interest rates | 1.99% – 46.96% |
Loans Canada is a loan search platform and comparison website that connects online lenders with borrowers looking for suitable financial solutions for their needs without impacting their credit file with hard inquiries.
The platform offers personal and business loans, debt consolidation loans, auto loans, and credit-building loans. It is ideal for borrowers who need quick loans, have a thin credit history, and poor credit scores.
Loans Canada is a loan comparison platform for all kinds of personal loans, car loans, debt consolidation loans, and bad credit loans. It has partnerships with some of Canada’s largest lenders and offers free access to your Equifax credit score.
- Interest rate: 1.99% to 46.96%.
- Loan term: 4-60 months.
- Maximum loan amount: Up to $50,000.
Loans Canada
Loans Canada is a loan comparison platform for all kinds of personal loans, car loans, debt consolidation loans, and bad credit loans. It has partnerships with some of Canada’s largest lenders and offers free access to your Equifax credit score.
Interest rate: 2.99% to 46.96%.
Loan term: 4-60 months.
Maximum loan amount: Up to $50,000.
LoanConnect
| Feature | Details |
| Loan amounts | $500 to $50,000 |
| Loan terms | 3 to 120 months |
| Interest rates | 6.99% – 46.96% APR |
LoanConnect is an online platform that connects lenders with borrowers needing unsecured personal loans, providing the best possible loan options based on personal needs and financial situation.
Whether you have excellent, good, or poor credit, LoanConnect can help you find the best lender through secure web technology. Moreover, its lenders offer instant approval credit and transfer the funds into your account in less than 24 hours.
LoanConnect
LoanConnect is a search engine for finding personal loans online from various lenders. You can use it to find a loan that works for your situation regardless of your credit score.
Interest rate: 6.99% to 46.9%.
Loan term: 3-120 months.
Maximum loan amount: Up to $50,000.
Should You Apply For a Loan With Fairstone?
Before applying for a loan from Fairstone, consider some factors that will help you become an informed borrower. This will enable you to make the best decision for your financial circumstances.
How much do you need to borrow?
If you know beforehand how much you need to borrow, it will help you stick to a loan amount you can manage. This will depend on what you plan to do with the money. Decide on an amount before filing a loan application to avoid taking on more loans than you intended.
What loan payment can you afford?
Determine how much you should set aside each month to repay your loan. Use your monthly budget to calculate if you still have room to put away some savings even with your new loan.
What is the cost of borrowing?
Speak with your Fairstone Lending Specialist about the cost of borrowing. Finding out the interest rate and the total cost of borrowing over the life of your loan can help you determine the ideal loan amount and the loan term that will fit your budget. Remember that a longer loan term means a higher cost of borrowing.
How quickly can you repay the loan?
The length of time you choose to repay your loan dictates what loan product you need, the loan payment amount, and borrowing costs. A loan with a shorter term increases your loan payments but reduces your loan term and interest fees. Longer loan terms reduce your loan payments but increase your loan term and interest fees.
FAQs
If you cannot make loan payments, you may be charged more interest on your loan, your collateral could be at risk if you have a secured loan, and your credit score will decrease. Furthermore, Fairstone may charge off your loan and sell it to a collection agency.
Fairstone Bank of Canada, formerly the Duo Bank of Canada, owns Fairstone. In January 2021, Duo Bank of Canada acquired Fairstone Financial Holdings Inc. and its wholly-owned operating subsidiary, Fairstone Financial Inc. In June 2022, Fairstone announced that Duo Bank of Canada was rebranded to Fairstone Bank of Canada.
Fairstone’s interest rates, which vary by province, start from 19.99% on a secured personal loan and 26.99% on an unsecured personal loan. Interest rates are also based on credit score, borrowing history, and other factors, so they vary from one customer to another.
It’s important to note there’s a difference between a loan application and a loan quote. At Fairstone, you can get a loan quote to find out how much money you could qualify for and what your payments might be. Completing a loan quote only requires a soft credit check, which does not affect your credit score.
An example of a “soft inquiry” is when you check your own credit report. Credit monitoring services let you check your credit and credit report without affecting your credit.
When you formally apply for the loan, a hard credit check is required, and you will likely see a short-term decrease in your credit score. However, making timely loan payments can boost your credit score over time.
*Interest rates are subject to change. Actual Annual Percentage Rate (APR) varies based on the province of residence and individual factors like credit details and loan amount. The interest rate on an unsecured personal loan is 31.99% in BC, 31.99% in MB, and 34.99% in QC.
**On approved credit. Terms and conditions apply. Interest rates vary by province/territory and from customer to customer based on factors like credit score and borrowing history. See Fairstone’s website for details.
In Ontario, Fairstone Financial Inc. is licensed as mortgage brokerage 10821. In Nova Scotia, Fairstone Financial Inc. is licensed as mortgage lender #2021-3000028.
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