Fairstone review

What is Fairstone?

Fairstone Financial 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.

Is Fairstone legitimate?

Fairstone is a legitimate business and has a long history of providing financial services in Canada. It has been featured in news outlets like The Globe and Mail, Financial Post, Business Wire and Newswire.

Fairstone Financial has been recognized as one of Montreal’s top employers and has an A+ rating with the Better Business Bureau. It’s also licensed as a mortgage brokerage in Ontario and a mortgage lender in Nova Scotia.

However, Fairstone has received poor ratings on customer review sites like Trustpilot, where there is a pattern of complaints about its lack of customer service and surprising charges. It was also showcased along with three other lenders as “having confusing and misleading representations, and a lack of transparency and documentation” as per a January 2021 article from the CBC.

Features of Fairstone loans

	Secured personal loan	Unsecured personal loan
Loan amount	$5,000 – $50,000	$500 – $25,000
Loan type	Secured	Unsecured
Loan term	36 - 120 months	6 - 60 months
Interest rate	19.99% - 24.49%	26.99% - 39.99%
Fees	Varies by province	None
Serviced provinces	Canada-wide (excluding Nunavut)	Canada-wide (excluding Nunavut)
Basic eligibility criteria	Must be a homeowner, min. credit score of 560	Must have an established credit history, regular employment, a steady income and min. credit score of 525

What we like about Fairstone

• Flexible loan size. With loan amounts ranging from $500 to $50,000 available, Fairstone offers loans to suit the needs of a wide range of borrowers.
• Flexible loan terms. Terms of 6 to 120 months are available depending on how much you borrow and your repayment schedule.
• Secured and unsecured loans. You can choose from both secured and unsecured personal loans. Both come with fixed interest rates but have varying repayment terms and loan amounts.
• Large branch network. Fairstone has over 240 branches across Canada, which is welcome news if you ever want to access face-to-face customer service.
• Available across Canada. You can apply for a Fairstone loan across Canada (excluding Nunavut).
• Fast access to funds. Once you’ve been approved, you should have access to your funds within one business day. You can use your 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 repayment options. Fairstone loans have several repayment options, including weekly, bi-weekly 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.
• Established lender. Fairstone has been providing personal loans for almost 100 years and is accredited by the Better Business Bureau.

What to watch out for

• Steep interest rates. Interest rates start at 19.99% to borrow with Fairstone, even with your home equity on the line. With an excellent credit score, you may be able to secure much lower interest rates from traditional lenders and online lenders.
• 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.
• Additional charges. Applying for a Fairstone secured loan 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.
• Prepayment penalty. If you want to pay your secured loan off early in the first 36 months of your term, a prepayment penalty will apply. Fairstone’s unsecured personal loan does not have prepayment penalties.
• Negative reviews and complaints. Fairstone has a poor overall rating from customers on review sites like Trustpilot and the Better Business Bureau.
• Unsolicited loan offers. Some customers indicate that they have been contacted repeatedly by Fairstone with unsolicited loan offers.

Alternatives to Fairstone

What do Fairstone reviews have to say?

There are many negative customer reviews for Fairstone on sites like Trustpilot and the Better Business Bureau, where Fairstone averages less than 2 out of a possible 5 stars. Complaints mention factors such as high interest rates, misleading information, unsolicited loan offers and customer service issues.

As of July 2023, the Better Business Bureau had also closed 286 complaints against Fairstone in the last 3 years.

Fairstone reviews summary

Feature	Details
Better Business Bureau accredited	Yes
Better Business Bureau rating	A+
Better Business Bureau reviews	1.17/5 based on 110 Fairstone reviews
Trustpilot reviews	1.5/5 based on 167 Fairstone reviews
Reviews verified correct as of	July 10, 2023

Fairstone reviews from Finder survey

What are the eligibility requirements of Fairstone loans?

The eligibility criteria you’ll need to meet vary depending on the type of loan you want to apply for.

Secured loan

To qualify for a Fairstone secured loan 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

Unsecured loan

You’ll need to meet the following criteria to qualify for Fairstone unsecured personal loans:

• Be a Canadian citizen or resident who is the age of majority in your province
• Show proof of regular employment and a steady income
• Have an active bank account in your name with direct deposit capability

How to apply

You can apply for a Fairstone unsecured personal loan by following the steps below. Apply in minutes and get approved in as little as a few hours.

1. Go to the Fairstone website.
2. Input how much you’re looking to borrow and why you need the money.
3. Provide your full name and mailing address, and specify how long you’ve lived in your current home and how much you pay monthly.
4. Input contact information, including your email address and phone number, and provide details about your annual income.
5. Review your information and click the box that says, “I agree to let Fairstone perform a credit check, which will not affect my credit score.”
6. Agree to the terms and conditions to get your quote. You’ll then be matched with a lending specialist to discuss your loan details.
7. Submit required documents and finalize your loan application online or in a branch.

Go to site

Please note that if you’re applying for a secured loan, the application process is a little different and it will take longer to get approved. While you can get a loan quote online, you’ll need to visit a Fairstone branch to provide proof of ID as well as all the necessary loan paperwork. Fairstone will also need to appraise the value of the asset you’re providing as collateral, so it will typically take a few business days to get approved and funded.

Frequently asked questions

• Can I pay off a Fairstone unsecured personal loan early?

  Yes, Fairstone does not charge any prepayment fees if you pay off an unsecured personal loan early. However, a prepayment fee does apply to secured loans if you pay your loan off early in the first 36 months.

• How is my interest rate determined on a Fairstone loan?

  Your interest rate is determined based on factors including your credit score, income, employment status, homeownership status and loan type.

• How can I get a better interest rate with Fairstone?

  You can secure your loan with an asset to get slightly better rates starting at 19.99% for excellent credit. However, this is still very high compared to many other loan options. You may want to consider loans from other lenders, unless you have poor credit and are struggling to qualify with a traditional lender.

• What can I use my Fairstone loan for?

  Fairstone says you can use the funds from your personal loan for anything you need. One of the most common uses for a personal loan is to consolidate unpaid bills and debts, but Fairstone says that ultimately you can use your secured loan for any of life’s expenses.

• How much do Fairstone loans cost?

  Interest rates for Fairstone personal loans start at 19.99% for secured loans, and go up to 39.99% for unsecured loans. However, interest rates may vary by province.

  Fees for secured personal loans may apply and vary between different provinces and territories. Types of fees may include administrative, insurance, home evaluation, title examination and other applicable fees.

Sources:

1. CBC