Loans & Debt · Lender review
Fairstone review
A long-established national lender for below-bank credit — but its unsecured pricing runs to nearly 35%, so the only version that genuinely helps consolidation is the secured (home-equity) loan near 20%.
Best for: Homeowners with fair credit who can secure the loan against equity for a far lower rate
Pros
- Will refinance debt for credit profiles a bank declines
- A secured (home-equity) loan drops the rate to ~19.99%–25.99%
- Physical branches across Canada; often a same-day decision
- No stated prepayment penalty; unsecured loans cancellable within 14 days
Cons
- Unsecured APR runs 29.99%–34.99% — usually higher than the cards being consolidated
- Securing a loan puts your home on the line for what was unsecured debt
- Fees are folded into the secured/mortgage APR rather than shown separately
The unsecured trap
Here’s the honest warning. Fairstone’s unsecured personal loan is priced 29.99%–34.99%. Consolidating credit cards that charge ~20% into a loan that charges 30%+ does not save money — it costs more, while making the debt feel "handled." If that’s the only offer you get, it’s a signal to look at a consumer proposal or non-profit credit counselling instead.
The federal criminal interest-rate cap is 35% APR (in force since January 1, 2025), and Fairstone repriced its unsecured loans to sit just beneath it — but "under the legal cap" is a long way from "a good idea."
Where Fairstone actually helps
The case for Fairstone is the secured loan: by pledging home equity you can bring the rate down to roughly 19.99%–25.99% on $5,000–$60,000 over up to 120 months. For a homeowner with fair credit and high-rate cards, that can be a real improvement. But understand the trade: you are converting unsecured debt into debt secured against your home, which raises the stakes if you can’t pay. Weigh it carefully, and run it through the consolidation calculator first.
Frequently asked questions
What rate does Fairstone charge?
Unsecured 29.99% – 34.99%; secured 19.99% – 25.99%. Loan amounts: Unsecured $500 – $25,000; secured $5,000 – $60,000. Terms: Unsecured 6 – 60 months; secured 36 – 120 months. Figures verified at Fairstone's own site on June 13, 2026 — compare the whole field on our Best debt-consolidation loans ranking, and model the savings with the debt consolidation calculator.
Does Fairstone charge fees or a prepayment penalty?
No flat origination %; secured/mortgage APR includes admin, appraisal and legal costs; $45 NSF. No penalty stated; unsecured loans cancellable within 14 days. Unsecured APR now tops out at 34.99% (Fairstone repriced under the federal 35% cap, down from a previous 39.99% high). Consolidating ~20% cards into a ~35% unsecured loan still does not help — the secured (home-equity) option near 20% is the one that makes sense. Always confirm fees and the prepayment policy in writing before you sign.
Who is Fairstone best for?
Homeowners with fair credit who can secure the loan against equity for a far lower rate. Eligibility: Accepts weaker credit than a bank; secured loans require home-equity collateral. If the rate you're offered isn't lower than the debt you're clearing, consolidation won't help — read our consumer proposal vs bankruptcy guide for what to do when the debt is past the point a loan can fix.
The bottom line
Fairstone is a legitimate option for homeowners who can use the secured loan to reach ~20% — but its unsecured pricing is too high to help most consolidators. If you’re only offered the unsecured rate, compare the whole field and consider whether the debt is past the point a loan can fix.
Ready to compare Fairstone against the field?
Every lender verified at the source, ranked for consolidation value.
This review is for educational purposes only and is not financial advice. APRs, loan amounts, terms and fees shown were verified at the lender's own published pages on June 13, 2026 and change without notice; the rate you are offered depends on your credit and income. Our editorial rating reflects rate, fees, terms and transparency for debt consolidation — it is never paid for. The federal criminal interest rate is capped at 35% APR. Confirm all terms in writing before signing. See our methodology.