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Fairstone Secured Personal Loan review
Need a large personal loan of up to $50,000? If you have home equity, apply for a Fairstone secured loan.
Home owners with a chunk of equity in their name open up opportunities for a secured loan from Fairstone starting at $5,000 up to $50,000. Borrowers must have home equity to use as collateral to qualify for a loan with interest rates between 19.99% and 23.99%, loan terms up to 10 years and affordable loan repayments.
Finder Rating: 3.7 / 5
★★★★★
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19.99% - 23.99%
Interest Rate
$50,000
Max. Loan Amount
560
Min. Credit Score
Fairstone Secured Personal Loans at a glance
- Loan amounts up to $50,000
- Flexible loan terms from 36 months to 10 years
- Over 240 Fairstone locations across Canada
- Interest rates are high compared to other secured loans
- You have to use your home as collateral
What is Fairstone?
Fairstone is a Canadian alternative lender that operates both online and out of over 240 locations across Canada. It’s been in business since 1923 with headquarters in Montreal, Quebec. Fairstone offers secured and unsecured personal loans, mortgages, consumer financing, automobile financing, and retail point-of-sale financing.Fairstone Secured Personal Loan features
| Feature | Details |
|---|---|
| Loan amount | $5,000 – $50,000 |
| Loan type | Secured |
| Loan term | 36 - 120 months |
| Interest rate | 19.99% - 23.99% |
| Fees | Varies by province |
| Serviced provinces | All across Canada |
| Basic eligibility criteria | Must be a homeowner, min. credit score 560 |
What we like about Fairstone Secured Personal Loans
If you’re looking for a secured loan, Fairstone is one of many options available to you. It has some key features worth highlighting, including:
- Flexible loan size. Fairstone offers secured loans between $5,000 and $50,000. This limit is higher than that of unsecured loans from Fairstone.
- Fast access to funds. Once you’ve been approved, you should have access to your funds within 1 business day. You can use the secured loan to consolidate your debts, cover unexpected expenses, manage costly home repairs and more. Your loan can also be managed completely online on Fairstone’s customer portal.
- Flexible loan terms. Count on lengthy loan terms of between 36 months to 10 years so monthly repayments are lower and easier to manage.
- Flexible repayment options. Fairstone offers you several repayment options, including weekly, fortnightly and monthly repayments. You can also opt to make payments in cash, cheque, money order or direct withdrawal. You can make payments in person at one of over 240 locations across Canada, over the phone or online, too.
- Available across Canada. You can apply for a Fairstone secured loan in all 10 provinces and 3 territories.
What to watch out for
Shouldering more debt is always a risky decision, especially with large-sized personal loans. Here’s what to keep in mind before you take out a secured loan with Fairstone:
- Steep interest rates. Interest rates start at 19.99% right up to 23.99% to borrow with Fairstone, even with your home equity on the line. With a great credit score, you may be able to secure much lower interest rates from traditional lenders and online lenders.
- Additional charges. Applying for a secured loan with Fairstone comes with additional fees and charges for a home valuation, title search and other due diligence steps. Ultimately, your lending specialist needs to ensure your home is valued correctly to decide on how much Fairstone can lend you.
- Your home is used as collateral. Using your home as insurance on your loan can be risky, especially if there’s a chance you could default on your loan. Make sure you’re prepared to shoulder this debt if you’re putting your home equity on the line.
- In-person application. If you’re applying for a secured loan, you’ll need to visit a Fairstone location to submit the necessary paperwork in person. There are over 240 locations across Canada.
Is Fairstone legitimate?
Yes, Fairstone is a legitimate lender in Canada with a solid reputation. It has been featured in news outlets like The Globe and Mail, Financial Post, Business Wire and Newswire.
Fairstone is accredited with the Better Business Bureau, and was recently recognized as one of Montreal’s Top Employers by Canada’s Top 100 Employers. It has made the list of best personal loans in Canada from sites like Toronto Star, Financial Post and Finder. Fairstone’s mortgage brokerage licence in Ontario is 10821.
Summary of Fairstone reviews
| Feature | Details |
|---|---|
| BBB accredited | Yes |
| BBB rating | A+ |
| BBB customer reviews | 1 out of 5 stars, based on 46 reviews |
| Trustpilot score | 1.7 out of 5 stars, based on 92 reviews |
| Customer reviews verified as of | June 14, 2022 |
Alternatives to Fairstone Secured Personal Loans
| Go to site |
|---|
|
APR Secured from 2.00%, Unsecured from 8.00% to 46.96% |
|
Loan term 3 - 60 months |
|
Loan amount $300 – $50,000 |
|
Min. credit score 300 |
|
Provinces Serviced All of Canada |
|
Eligibility Requirements No min. income or employment requirements |
| Go to site |
|---|
|
APR Secured from 1.90%, Unsecured 6.99%-46.96% |
|
Loan term 3 - 120 months |
|
Loan amount $500 – $50,000 |
|
Min. credit score 300 |
|
Provinces Serviced All provinces. |
|
Eligibility Requirements Currents debts must total less than 60% of income |
| Go to site |
|---|
|
APR 10.00% - 22.99% |
|
Loan term Up to 60 months |
|
Loan amount $10,000 – $500,000 |
|
Min. credit score 300 |
|
Provinces Serviced AB, BC, ON, QC |
|
Eligibility Requirements Must be a homeowner |
Compare more personal loans
Am I eligible for a Fairstone Secured Personal Loan?
Before applying for a Fairstone loan, you’ll need to make sure you qualify. You must be:
- A Canadian resident, of the age of majority in your province or territory
- Employed, with proof of monthly and yearly income
- A homeowner with home equity already established; Fairstone does not include details on how much home equity you must have to qualify for a loan, but you’ll need to provide your mortgage statements as proof
- Have an active bank account in your name with direct deposit capability
- Have a valid phone number, mailing address and email address
What provinces and territories are Fairstone loans available in?
Fairstone’s secured personal loan is available across Canada. Eligibility requirements and necessary documentation will vary depending on the province and territory you live in. Residents in Quebec, for example, must provide their Notice of Assessment issued by Revenue Quebec while the rest of the country only needs to submit their Canada Revenue Agency Notice of Assessment from the past 2 years.
Ask your Fairstone lending specialist when they contact you to ensure you provide the right set of documents with your application.
How do I apply for a Fairstone secured loan?
If you’re ready to apply for a Fairstone secured loan, follow these steps:
- Start with an online loan quote by clicking on the “Go to site” button on this page above. Then click the “Get A Loan Quote” button on Fairstone’s site to start the application. Indicate how much money you’re looking to borrow and enter details like your full name, phone number, email address, home equity and employment information. Click “Submit”.
- Receive your personalized loan offer immediately. Fairstone says it will provide an approval decision, including how much you could qualify for and what your repayments may be. You’ll also be sent an email to confirm your loan quote details. There’s no impact on your credit score. Keep in mind that just because you qualify for a larger sum, it doesn’t mean you have to borrow that much money. Only borrow what you need and can afford to pay back.
- Shortly after you receive your quote, you’ll receive a phone call from a Fairstone lending specialist to discuss your loan details. Work with your lending specialist to determine the loan amount and repayments that best suit your needs.
- Finalize your application. Fairstone will ask for a series of documents to verify your identification and your home equity before proceeding. You will need to visit one of Fairstone’s branches to submit your paperwork and sign off on the loan.
- Receive your funds. After your loan is approved and signed off on, Fairstone will transfer the funds for your personal loan to you within a business day.
What documents do I need?
After you apply for a secured loan, you will need to verify your identity and application details. You will be asked to provide:
- One piece of primary identification. This could include your Canadian driver’s licence, passport or citizenship card.
- Employment and income verification. This could be via pay stubs, your latest T4, or a Canada Pension Plan statement dated within the last 12 months. If you’re self-employed, please provide a CRA Notice of Assessment from the past 2 years.
- Housing information. To verify your mortgage, you’ll need to provide your latest mortgage statement that includes your current balance, monthly payment, payment status and your name and address.
How much will a Fairstone Secured Personal Loan cost?
It’s worth noting that Fairstone’s secured loans have interest rates starting at 19.99% up to 23.99%, depending on several factors, including your income and credit history. That’s still quite high – other secured personal loan products may come with lower interest rates so borrowers should do their comparison shopping before settling on a Fairstone secured loan. If you qualify, you can borrow up to $50,000 with terms starting at 36 months up to 10 years.
So let’s say you get a $20,000 secured loan from Faristone, and you’re approved for a 21.99% rate on a 6 year loan term. In that example, your monthly payment would be $502.40. You would end up paying back a total of $36,173.08, which includes $16,173.08 paid towards interest alone.
Calculate your Fairstone secured loan monthly payment
Calculate how much you could expect to pay each month on a secured loan from Fairstone|
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Bottom line
If you need a large sized personal loan, it may be worth looking into a Fairstone secured loan. Secured loans typically come with lower interest rates starting as low as 2%, but Fairstone secured loans start at 19.99%. So it’s worth comparing lenders before you decide on a Fairstone secured loan. If your credit score is in great shape and you’re willing to use your home as collateral, you may be able to get lower rates from other lenders. You can consider a wider range of secured personal loan options in our full guide to secured loans here.
