Fairstone is one of Canada’s oldest and largest non-bank lenders, with a history stretching back nearly a century. It offers personal loans, secured lending, and mortgages to Canadians with fair to near-prime credit, the people banks often turn away. But how do its loans actually compare, and what should you watch for before signing? Here’s my full breakdown.
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Results vary by debt type, creditors, and budget. This page isn’t legal advice.
What Is Fairstone?
Fairstone offers unsecured and secured personal loans, plus home-equity loans and mortgages. It’s built for Canadians who may not qualify for traditional bank credit but need access to mid-sized financing for debt consolidation, major purchases, or unexpected expenses.
One thing worth knowing up front, because it’s changed: Fairstone now operates as a subsidiary of Fairstone Bank of Canada. It still functions as a separate, near-prime lending brand with its own branch network, but it’s no longer the independent, investor-owned non-bank it used to be. That bank backing doesn’t change the high rates, but it does speak to the company’s scale and staying power.
Who Is It For?
If your credit score is roughly 550 to 660 and you have steady income, Fairstone may approve you where a bank won’t. The trade-off is cost: its APRs run well above bank rates, so it’s best suited to short-term borrowing or to consolidating higher-interest debt like credit cards. From years of analyzing lending, my rule of thumb here is simple, Fairstone makes sense when your realistic alternative is a payday loan or a 30% credit card carrying a balance, not when a credit union would take you.
Key Features
| Feature | Details |
|---|---|
| Unsecured loans | Up to $25,000 |
| Secured loans | Up to $60,000 (home-backed) |
| Mortgages | Up to $400,000 (first), $125,000 (second) |
| Unsecured APR | Starts at 29.99% (varies by province and credit) |
| Secured APR | Starts at 19.99% |
| Terms | 6–60 months (unsecured), 36–120 months (secured) |
| Approval time | Same-day in many cases; funding often 1–3 business days |
| Pre-qualification | Soft check, no credit-score impact |
| Branches | 250+ across Canada, plus online |
Pros and Cons
👍 Pros
- Fast approval and funding, often same-day decisions with money in 1–3 business days.
- Accepts lower credit scores than banks, with a near-prime focus.
- Reports to Equifax and TransUnion, so on-time payments can help rebuild credit.
- Large branch network (250+ locations) for in-person service, a real advantage if you prefer face-to-face help.
- No prepayment penalty on unsecured loans.
👎 Cons
- High APRs, far above bank rates, especially on unsecured loans starting near 29.99%.
- Optional insurance and fees can quietly raise the total cost; loan protection insurance is an upsell, not a requirement.
- Secured loans do carry prepayment penalties (unlike the unsecured ones), and they vary by province.
- Potential for upselling, so read every line of what you’re offered.
How Does Fairstone Compare?
| Lender | Min. credit score | APR range | Loan types |
|---|---|---|---|
| Fairstone | ~550+ | 19.99% – 39.99% | Personal, secured, mortgage |
| Spring Financial | ~600+ | 18.99% – 29.99% | Personal loans |
| iCASH | None | 29% – 47% | Short-term loans |
Fairstone sits in the middle of this group: more accessible and longer-term than a short-term lender like iCASH, but pricier and more flexible on credit than a fintech like Spring Financial. Where it really separates from payday and short-term products is structure, fixed installments over a longer term are far easier to manage than a lump-sum payday loan due on your next cheque.
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Fairstone Locations Across Canada
Fairstone runs 250+ branches coast to coast, so there’s a good chance of one near you whether you’re in a big city or a smaller community. A snapshot of where you’ll find them:
- Ontario: Toronto, Ottawa, Mississauga, London, Hamilton, Windsor, Kingston
- Quebec: Montreal, Quebec City, Laval, Gatineau, Sherbrooke
- British Columbia: Vancouver, Surrey, Victoria, Kelowna, Kamloops
- Alberta: Calgary, Edmonton, Red Deer, Lethbridge
- Manitoba: Winnipeg, Brandon
- Saskatchewan: Saskatoon, Regina
- Atlantic Canada: Halifax, Moncton, St. John’s, Charlottetown, Fredericton
- Territories: Online services in Yukon, Northwest Territories, and Nunavut
Even without a nearby branch, Fairstone offers a fully online application for many products, so you can apply and manage your loan remotely. Its head office is in Montreal at 630 René-Lévesque Blvd W.
Final Verdict
Fairstone can be a solid choice if you need money quickly and don’t qualify at a bank. The catch is cost: high APRs and optional insurance products can push the total well up, so understand every term before you sign. It’s at its best as a bridge out of more expensive debt, not as a way to fund recurring expenses. And if you’re already struggling, a non-profit debt-relief agency is often a more sustainable path than another loan. For a sense of where Fairstone fits among Canadian options, our roundup of the best debt consolidation and relief programs in Canada is worth a look.
Fairstone FAQ
Is Fairstone a legitimate lender in Canada?
Yes. Fairstone is a well-established, fully licensed lender with nearly a century of history, now operating as a subsidiary of Fairstone Bank of Canada. It’s a member of the Canadian Lenders Association and runs 250+ branches nationwide.
What types of loans does Fairstone offer?
Unsecured personal loans (no collateral, up to $25,000), secured personal loans (backed by home equity, up to $60,000), mortgages, and retail financing through select merchants. Common uses include debt consolidation, home improvement, and unexpected bills.
What are Fairstone’s interest rates?
Secured personal loans start at 19.99% APR; unsecured loans start at 29.99%. Rates vary by province, loan type, and creditworthiness, and the unsecured range reaches up to roughly 39.99%.
What’s the minimum credit score?
There’s no fixed cutoff, but applicants around 550 and up are more likely to be approved. Fairstone caters to fair and near-prime borrowers.
Does Fairstone do a hard credit check?
A soft check is used for pre-qualification (no score impact), and a hard inquiry is performed when you formally apply, which can lower your score by a few points.
How much can I borrow?
Up to $25,000 unsecured and up to $60,000 on a secured (home-backed) loan; mortgages go higher.
What are the repayment terms?
6–60 months for unsecured personal and auto loans, and 36–120 months for secured personal loans.
Are there prepayment penalties?
No penalty on unsecured loans, so you can pay them off early for free. Secured loans do carry prepayment penalties that vary by province, so confirm the terms in your contract.
How fast is approval?
Same-day in many cases, with funds typically disbursed within 1–3 business days.
Can I manage my loan online?
Yes. Fairstone’s online portal lets you view your balance, make payments, download statements, and update your details.
Can I refinance a Fairstone loan?
Often, yes. With on-time payments and an improved credit profile, you may qualify to refinance at a better rate or term.
Is Fairstone better than a payday loan?
Yes. Even with high rates, Fairstone’s fixed-payment installment loans and longer terms are far more manageable, and less predatory, than payday loans.
What are the risks?
High interest (especially unsecured), missed-payment fees, credit damage if you fall behind, and the danger of a debt cycle if you use it for recurring costs rather than one-time needs.
Does Fairstone help with debt consolidation?
Yes. Many borrowers roll higher-interest credit card balances into a single Fairstone payment, which can save on interest over time.
What happens if I miss a payment?
Possible late fees, collection activity, negative credit marks, and added interest. Contact Fairstone right away if you’re struggling; they may offer hardship options.
Is Fairstone owned by a bank?
Yes, now it is. Fairstone was once tied to Duo Bank and later investor-owned, but it now operates as a subsidiary of Fairstone Bank of Canada, while still running as its own near-prime lending brand.
How do I apply?
Online at Fairstone.ca, by phone, or in person at a branch. You’ll need to be a Canadian resident with steady income, valid ID, and proof of residence.
Many borrowers use a Fairstone loan specifically to escape the payday loan cycle.
Disclaimer: This article is for informational purposes only and is not financial advice. Loan terms, rates, and availability vary by province and individual circumstances; always review your full loan agreement and consider speaking with a licensed advisor before borrowing.
Mohammed Saqib has a Masters Degree from Wilfrid Laurier University in Waterloo. He has a robust background in accounting and finance. Mohammed started his career three years ago working as an investment analyst at a sell-side firm. He has extensively covered publicly-listed companies using fundamental analysis as the cornerstone of his approach. Mohammed has been published on SeekingAlpha, InvesorPlace, Yahoo! Finance and others.
