What is a secured loan?

A secured personal loan allows homeowners to use their home equity as an asset to secure their loan. Choosing a home equity loan gives homeowners the option to borrow more money at a lower interest rate, often with lower loan payments. If you’re wondering which loan is right for you, read about the difference between secured and unsecured personal loans here.

Not a homeowner? Fairstone also offers unsecured personal loans up to $20,000. Learn more about our personal loan products and how Fairstone can help you find one that suits suit your needs, lifestyle and budget.

What are the benefits of secured loans using home equity?

  • Borrow more money – Borrow up to $35,000 using the equity in your home
  • Access lower interest rates – Fairstone offers lower interest rates on secured loans than on unsecured personal loans, with rates as low as 19.99%
  • Flexible payment options – Manageable payment terms from 36-120 months allow you to customize your loan payment amount
  • Simple application process – Let us know you want a secured loan while completing a free no-obligation loan quote and find out how much you could qualify for.

Get a personalized loan quote.

Unsecured personal loans up to $20,000

Apply for an unsecured loan and get up to $20,000 as soon as today.

Loan amount
Interest rate
6–60 month
Prepayment penalties
Time to process
< 1 day
14 days

Secured personal loans up to $35,000

Apply for a home equity loan and borrow more money at a lower rate.

Loan amount
Interest rate
36–120 months
Vary by province
Prepayment penalties
Time to process
2+ days
2+ days

Quick, simple and secure loan estimate     GET AN INSTANT LOAN QUOTE

Borrow more at a lower rate with a homeowner loan

Fairstone offers Canadian homeowners secured loans up to $35,000.

Home improvements

Borrow the money you need to cover home renovation projects and increase the value of your home.

Large unexpected expenses

If you’re faced with an unexpected expense, an emergency loan may be for you. Apply now and get the money you need quickly with a secured personal loan.

Debt consolidation

Mange multiple bills, reduce debt and get your credit back on track. Leverage home equity to benefit from larger loan amounts and lower rates.

How to get a secured loan:

  1. Start with a quote: Simply tell us how much money you’re looking to borrow, and enter a few personal details.
  2. Receive your decision in minutes: We’ll tell you how much money you could qualify for if you go with an unsecured personal loan, and what your payments might be.
  3. Let us know you want a secured loan: A Lending Specialist will be in touch after your application. Since your quote will be for an unsecured loan, let us know you’re interested in securing your loan, and we’ll be happy to update your quote.
  4. Receive your money: Finalize your loan application in-branch, and receive your money quickly.

Protect yourself from the unexpected

These valuable benefits can give you peace of mind should the unforeseen occur. Visit our insurance page to get an in-depth explanation about the different creditor insurance products we offer.

Job Loss Insurance 

Have your loan payments covered if you're involuntarily unemployed.

Disability Insurance

If you experience disability and can't work, your loan payments could be taken care of.*

Life Insurance

Protect your family or estate in the future and have your loan paid off in the event of your death.*

Home and Auto Security Plan

Offering home and family benefits, roadside assistance, legal services and more. LEARN MORE

What is a secured personal loan?

A secured personal loan (also known as a home equity loan) is a loan that’s backed by the value of an asset (typically a house), unlike an unsecured loan that’s only backed by a signed contract or agreement. Some other differences between a secured loan and an unsecured loan include:

  • Interest rate: Since a lender has more confidence that you’ll pay back a loan, they often offer you a lower interest rate for a secured loan
  • Lower payments: A lower interest rate lends itself to lower payments
  • Loan term: You can often choose a longer loan term with a secured personal loan which can also help lower your monthly payments

A secured personal loan is a great option if homeowners are interested in consolidating debt, covering the cost of home repairs and more.

How do secured personal loans or home equity loans in Canada work?

If you’re wondering how home equity loans in Canada work, it’s similar to the way unsecured loans work, but the major difference is that you’ll need to have your home or property appraised. During the application process you and your lender will agree on a loan amount, interest rate and the length of time (or term) it will take to pay back the money you borrow. You’ll then go through the additional step of completing paperwork so that your lender can get your house appraised and put a “lien” on your property. The lien essentially acts as a contract for your loan since your lender can technically assume ownership of your house if you don’t pay back your loan. Once the loan is paid off, the lien will be lifted from your property.

There may be a small cost to have your house appraised. But depending on how much money you’re borrowing, the amount of money you save in interest charges by securing your loan may significantly outweigh the appraisal costs.

Does Fairstone offer low rate secured loans?

Low rate secured loans help you pay less interest overall during the course of your loan.

Fairstone’s secured loans offer a lower interest rate and lower payments compared to our unsecured personal loans. Homeowners can take advantage of these benefits by choosing to secure their loan against the value of their house. Are you a current customer who is a homeowner and interested in changing your unsecured loan to a secured loan? Contact your local branch to speak to your Lending Specialist about your options.

How do I apply for a secured loan?

Apply for a secured loan from Fairstone in 5 steps:

  1. Start with an online loan quote: Let us know how much money you’re looking to borrow and enter a few simple details. There’s no obligation to take the loan, and no impact to your credit score.
  2. Receive your personalized loan offer: After you complete the online quote, you’ll receive an approval decision – you’ll find out how much money you could qualify for and what your payments might be. You’ll also be sent an email to confirm your quote details.
  3. Let us know you’re interested in a secured loan: Shortly after your quote, a Lending Specialist will be in touch by phone to discuss your loan details. Your loan quote will be for an unsecured loan, so it’s important to let us know you’re interest in a secured loan so we can update your quote.
  4. Finalize the application in branch: Bring in the documents required for your loan application, and visit one of our 240+ branches to finalize the application.
  5. Receive your money: Since there is more paperwork for a secured loan, you’ll have to wait a few days to access your loan. However, we’ll work with you to finalize your loan application as quickly as possible.

Interested in a secured loan? Get an online quote in minutes to find out how much money you could borrow.

1Interest rates may vary by province.

In Ontario, Fairstone Financial Inc. is licensed as mortgage brokerage 10821.

*Coverage varies and is subject to the terms and conditions of the insurance policy and applicable law.

Insurance solutions provided by American Health and Life Insurance Company or Triton Insurance Company. Home & Auto Security plans are administered by Home and Auto Security Plan, Inc.