Fairstone Financial is a leading alternative lender in Canada that has provided personal loans and financing solutions for nearly 100 years. Fairstone offers a variety of lending products, including personal loans, mortgage financing, and retail financing through partnerships.
This guide will provide a detailed overview of Fairstone products and services, including interest rates, loan amounts, eligibility criteria, and the application process, to help borrowers make informed decisions.
What is Fairstone Financial Inc.?
Fairstone Financial Inc. (Fairstone) is a Canadian lending institution and subsidiary of Fairstone Bank of Canada. Fairstone operates as a separate brand and non-bank lender, offering personalized financing solutions to near-prime borrowers across Canada.
Headquartered in Montreal, Fairstone has over 250 branches coast to coast. It provides installment loans, mortgages, and retail financing online and through its retail locations.
Founded in 1923, Fairstone Financial is one of Canada’s longest-running and most established alternative lending institutions. [Source]
Who Is Fairstone Best For?
Given their higher interest rates compared to banks, Fairstone loans are best suited to certain types of borrowers:
- Borrowers with fair to good credit who cannot access prime lending rates from traditional banks. Fairstone provides an option for those with credit scores in the 680 – 750 range who cannot qualify for the lowest rates from prime lenders.
- Those who need quick access to financing or cash want funds deposited directly in as little as 24 hours. The quick approval process and funding speed make Fairstone a convenient option when urgent financing is needed.
- Customers who value personalized service and support throughout the application process. Fairstone offers helpful one-on-one advice and guidance tailored to each borrower’s needs.
- Borrowers who have been turned down by banks and need flexible options. Fairstone approves applicants banks may deem too risky and offers higher loan amounts to those with near-prime scores.
Fairstone offers a convenient borrowing experience, but customers with excellent credit may prefer competing lenders with lower rates.
What are Fairstone Loan Products?
Fairstone Financial offers a wide range of lending solutions for Canadians looking to access financing. Their core products include:
- Secured personal loans
- Unsecured personal loans
- Home equity loans
- Second mortgages
- Mortgage refinancing
- Retail financing
Below, we take an in-depth look at the key features, rates, terms, eligibility criteria, and application process for each major Fairstone loan product.
Fairstone Secured Personal Loans
Fairstone Secured Personal Loans allow customers to leverage assets like their home or car as collateral in exchange for lower interest rates and access to larger loan amounts.
- Application: Apply online or in-branch. Funding in 3+ days.
- Loan Amounts: Secured loans range from $5,000 to $60,000.
- Interest Rates: From 19.99% to 25.99% APR. Lower than unsecured loan rates.
- Terms: 1 to 10 years (12 – 120 months). Longer terms than unsecured loans.
- Fees: Varies by province. Fairstone charges fees such as processing fees and early repayment penalties.
- Eligibility: Must be a homeowner to use home equity as collateral.
Fairstone Unsecured Personal Loans
Fairstone’s unsecured personal loans provide access to financing up to $25,000 without requiring any collateral.
- Loan Amounts: Unsecured loans range from $500 to $25,000.
- Interest Rates: Rates on unsecured Fairstone loans range from 26.99% to 39.99% APR, depending on the applicant’s province of residence and credit profile.
- Terms: Unsecured loans can be paid back over terms ranging from 6 months to 5 years (60 months).
- Fees: Fairstone does not charge any fees for their unsecured personal loans.
- Eligibility: Available to residents of Canada over the age of majority in their province. No home ownership is required.
- Application: You can apply online or at one of Fairstone’s branches. Funding can be provided in as little as 24 hours.
Fairstone Unsecured vs Secured Personal Loans
| Loan Feature | Unsecured | Secured |
|---|---|---|
| Maximum Loan Amount | $25,000 | $60,000 |
| Interest Rates | 26.99% – 39.99% | 19.99% – 25.99% |
| Terms Available | 6 months – 5 years | 1 – 10 years |
| Fees | None | Yes, penalties for early repayment |
| Time to Funding | In 24 hours | In as little as 24 hours |
| Credit Check | Hard check | Hard check |
Fairstone Second Mortgages
Fairstone provides access to second mortgages to access additional financing secured against the borrower’s home equity.
- Interest Rates: Higher than first mortgage rates but lower than unsecured loan rates. Starting around 7.99% APR.
- Terms: 1 to 10 years. Term length affects the interest rate offered.
- Fees: Application fee, appraisal fee, and prepayment penalties apply. Discharge fee for your existing first mortgage.
- Eligibility: Current Canadian homeowners with sufficient equity. At least 20% remaining equity is required.
- Application: The same process applies to first mortgage refinancing. Allow 3-4+ weeks.
Fairstone Home Equity Loans
Fairstone offers home equity loans that allow borrowers to access financing up to 80% of their home’s value.
- Interest Rates: Competitive rates start from 6.45% APR based on loan-to-value ratio, credit score, and amortization period.
- Terms: 1 to 20 years. Lower rates are given for shorter terms.
- Eligibility: Must be a current Canadian homeowner with sufficient equity. LTV maximum of 80%.
- Application: Online or in-branch. 2-4 weeks to process with appraisal.
Fairstone Mortgage Refinancing
Fairstone offers mortgage refinancing solutions to consolidate high-interest debts into a lower monthly payment.
- Interest Rates: Competitive rates based on the applicant’s financial profile, with discounts for members. Rates start at 5.85% APR for refinances.
- Terms: Mortgage terms up to 15 years. Longer amortization periods have higher rates.
- Fees: Application fees, appraisal fees, and early repayment charges may apply. Discharge fees to pay off your old mortgage.
- Eligibility: Available to Canadian homeowners with sufficient equity looking to refinance. Credit score and debt levels assessed.
- Application: Apply online or at a branch. Allow 3-4 weeks for completion but can be expedited.
Fairstone Mortgage Loan Options Comparision
| Loan Type | Interest Rates | Maximum LTV | Terms Available |
|---|---|---|---|
| Mortgage Refinance | 5.85%+ | 80% | Up to 15 years |
| Second Mortgage | 7.99%+ | 65% | 1-10 years |
| Home Equity Loan | 6.45%+ | 80% | 1-20 years |
Fairstone Retail Financing
Fairstone partners with retailers to offer in-store point-of-sale financing and lending services. Current partnerships include Best Buy, The Brick, Sleep Country, and Birks.
- Eligibility: Available to customers with qualifying credit profiles. Offered directly through retail partners.
- Application: Apply in-store for instant financing on big-ticket purchases.
Borrowing with Fairstone in 2025
Let’s take a closer look at what borrowers can expect from Fairstone loans in 2025 regarding interest rates, loan amounts, the application process, and repayment terms.
Interest Rates
Fairstone offers very competitive rates, especially on secured loans and mortgages. Rates are primarily based on the applicant’s credit profile, province of residence, and the loan product type. Interest rates have gradually risen since 2023 in line with Bank of Canada rate hikes.
Here is an overview of how Fairstone rates compare to top alternate lenders:
| Lender | Rate |
|---|---|
| Fairstone | 5.85% – 39.99% |
| easyfinancial | 29.99% – 46.96% |
| Mogo | 9.9% – 47.7% |
| Spring Financial | 9.99% – 46.96% |
How much can you borrow with Fairstone?
Fairstone provides access to the largest loan amounts compared to other lenders, especially through secured lending.
| Lender | Maximum loan amount |
|---|---|
| Fairstone | Up to $60,000 |
| easyfinancial | Up to $45,000 |
| Refresh Financial | Up to $35,000 |
| Spring Financial | Up to $35,000 |
Approval Process
To get approved for a Fairstone loan in 2025, applicants can expect a process that takes approximately:
- Online pre-approval: Less than 5 minutes
- Full application: 24-48 hours
- Funding: Unsecured loans: As fast as 24 hours
- Secured loans/mortgages: 3-7 business days
The approval process is quick, and applicants can get an initial pre-approval without having to impact their credit score.
Fairstone Repayment Terms
Fairstone offers flexible repayment terms on their loans, including:
- Payment frequency: Weekly, bi-weekly, semi-monthly, or monthly payments
- Prepayment: No penalties for early repayment of unsecured loans
- Penalties: Early repayment fees apply to mortgages and secured loans
Customer Service
Fairstone aims to provide supportive and personalized customer service through multiple channels:
- In-person: Service at over 250 Fairstone branches across Canada.
- By phone: Speak to a Fairstone lending specialist Monday to Friday, 8 am – 8 pm EST.
- Online: Secure online chat and dedicated lending specialist.
According to customer reviews, Fairstone employees are knowledgeable, transparent, and helpful during borrowing.
What are the Pros and Cons of Borrowing from Fairstone?
Before applying for a Fairstone loan, weigh the following benefits and drawbacks:
Pros of Fairstone Loans
- Quick access to funds.
- Variety of loan products and flexible lending solutions.
- Lower rates than payday loans, credit cards, and other high-interest financing options. More affordable for borrowers unable to access prime rates.
- Online applications are available for convenient lending.
- Personalized service and one-on-one support from knowledgeable lending specialists. Valuable guidance tailored to your needs.
- Available to borrowers with fair credit who banks turn down. Provides financing options to those unable to get bank loans.
- Higher loan amounts are offered to borrowers with near-prime credit scores compared to traditional lenders. Access loans even with a prior bankruptcy or consumer proposal.
Cons of Fairstone Loans
- Higher interest rates compared to prime lenders like banks or credit unions. Borrowers with excellent credit will get lower rates elsewhere.
- Strict lending criteria still apply. Near-prime borrowers may not qualify for maximum loan amounts. Credit history is still being reviewed.
- Prepayment penalties and fees apply to secured loans and mortgages. Refinancing or paying off a mortgage early results in charges.
- Reports loan status to credit bureaus. Late or missed payments could negatively impact credit scores.
Is Fairstone Recommended?
In summary, Fairstone Financial offers various lending solutions, including personal loans, mortgages, and retail financing for Canadians looking to access credit. Their interest rates are higher than prime lenders, but they provide quick access to financing and customized support throughout the borrowing journey.
Borrowers with near-prime credit profiles will benefit most from considering Fairstone as an alternative online lender when they require fast financing and hands-on service. However, borrowers with excellent credit may want to compare interest rates from banks and credit unions to ensure they get the most competitive rate for their situation.
Consult with a broker at Best Mortgage Online to compare all options to ensure you select the lender and loan that best suits your unique needs and financial goals.
FAQs
What are Fairstone Financial's interest rates in 2025?
Fairstone's rates range from 5.85% to 39.99% APR, depending on loan type, credit score, and collateral. Unsecured loans are 26.99-39.99% APR, and secured loans are 19.99-25.99% APR.
How fast does Fairstone Financial fund loans?
Fairstone provides rapid funding in as little as 24 hours for unsecured loans and 3-7 days for secured loans and mortgages. Pre-approvals are instant.
Does Fairstone Financial offer mortgages?
Yes, Fairstone offers both first and second mortgages and home equity loans. Their mortgage refinance rates start at 5.85% APR.
Is Fairstone Financial legit?
Yes, Fairstone is a legitimate, regulated lender in Canada. It has over 100 years of lending experience and is accredited by the Better Business Bureau.
How does Fairstone compare to easyfinancial?
Fairstone offers lower rates, higher maximums, and better service than easyfinancial. Fairstone also serves near-prime borrowers, whereas easyfinancial lends to a higher-risk demographic.