Fairstone Bank of Canada

What Fairstone Bank of Canada does

Fairstone Bank of Canada is a federally chartered Schedule I bank and Canada's leading alternative lender, operating under Ontario Teachers' Pension Plan Board ownership through multiple consumer-facing brands: Fairstone (personal loans, retail financing, credit cards), Home Trust (residential and commercial mortgages, Visa credit cards), Oaken Financial (high-interest savings and GICs), Eden*Park* (automobile financing), Fig (digital lending), and Home Bank (GICs). Collectively, the group offers unsecured and secured personal loans online and through more than 255 branches coast-to-coast, with a stated combined history of nearly 100 years in Canadian financial services.

The platform's core technology comprises digital lending infrastructure (Fig, HomeTrust.ca), credit card processing and co-branded card programs (Walmart Rewards Mastercard, First National Home Equity Secured Mastercard, Home Trust Visa), mortgage origination and servicing systems spanning residential and commercial products, and proprietary credit risk and impairment monitoring for near-prime and alternative lending borrowers. The bank is a separate CDIC member institution across Fairstone Bank, Home Trust, and Home Bank, and is PIPEDA-compliant. Operational scale includes 1,001–5,000 employees, a multi-channel distribution model (branch, broker, digital, dealer), and a footprint serving Canadian consumers, alternative mortgage borrowers, seniors (via reverse mortgages), commercial real estate investors, and business partners in retail and auto.

Revenue is generated primarily through net interest income on the lending portfolio (mortgages, personal loans, automobile financing, retail financing), supplemented by credit card interchange and fee revenue, consumer deposit and GIC spread economics, and insurance/protection product revenue. The company makes a single largest bet on expansion through its announced C$1.9 billion acquisition of Laurentian Bank of Canada (announced 2025-12-02, shareholder approval 98.77%, closing expected late 2026), which would add commercial banking operations and roughly double the consolidated franchise. Capital raises totaling approximately C$1.18 billion across late 2025 and 2026 reflect pre-funding for the acquisition and continued balance sheet growth, while rising mortgage impairment (2.2% Q2 2025 vs 0.3% end-2022) signals credit-cycle risk in the near-prime book.

Name

Fairstone Bank of Canada

Legal name

Fairstone Bank of Canada

Website

https://fairstonebank.ca

Company type

Private

Founded year

1926

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Fairstone Bank of Canada is a federally chartered alternative lender serving Canadian consumers and businesses through multiple brands (Fairstone, Home Trust, Oaken Financial, Eden*Park*, Fig) offering personal loans, mortgages, credit cards, GICs, and auto financing across 255+ branches.

Ownership category

akta.pro rank

Product category

Alternative Lending

NAICS

Depository Credit Intermediation (5221), Credit Card Issuing (52221), Sales Financing (522220)

SIC

National Commercial Banks (6021), Personal Credit Institutions (6141)

akta.pro primary industry

Retail Lending (Personal Loans, Auto, Credit Lines) (FSABAAAB)

akta.pro secondary industries

Credit Cards & Revolving Credit (FSABAAAC), Digital Retail Banking (Online & Mobile) (FSABAAAF), Private Label / Store Credit Cards (FSAKABAC)

Keywords

• Alternative lending
• Consumer banking
• Personal loans
• Mortgage financing
• Credit card services

Headquarters

HQ city

Toronto

HQ country

Canada

HQ region

North America

Offices2 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Net Interest Income: Interest income from residential and commercial mortgages, personal loans, automobile financing, and retail financing. As an alternative lender, Fairstone earns interest margins on its lending portfolio. Morningstar report notes mid-sized banks like Fairstone have lower non-interest income at 18% vs Big Six banks at 50%, indicating higher reliance on net interest income.
2. Credit Card Fees and Interchange: Revenue from credit card issuance through Walmart Rewards Mastercard, First National Home Equity Secured Mastercard, and Home Trust Visa credit cards. Includes interchange fees, annual fees, and interest charges on revolving balances.
3. Consumer Deposits and GIC Revenue: Acceptance of consumer deposits including savings accounts and Guaranteed Investment Certificates (GICs) with terms from one to five years, distributed through brokers, investment advisors, and direct-to-consumer brand Oaken Financial.
4. Retail and Automobile Financing: Financing programs tailored to help Canadian businesses grow while providing customers convenience and flexibility to pay for purchases. Eden*Park* provides automobile financing through dealerships coast to coast.
5. Insurance and Protection Products: Related protection services offered alongside financing products, providing reliable and affordable plans that help customers protect what matters most.

Pricing tiers

Go-to-market motion3 records

Distribution channels5 records

Marketing channels4 records

Core offering

Fairstone Bank of Canada is a federally regulated alternative lending bank that provides consumer credit cards, unsecured and secured personal loans, residential and commercial mortgages, consumer deposits and GICs, retail and automobile dealer financing, and digital lending products to Canadians. It serves both consumers and businesses through 255+ branches, online channels, and subsidiary brands including Home Trust, Home Bank, Oaken Financial, Eden*Park*, Fig, and Fairstone Financial.

Product overview

Fairstone Bank of Canada operates as Canada's leading alternative lending bank, offering a diversified suite of financial products and services through multiple brands. The main Fairstone Bank brand provides credit card services, personal loans, digital lending, retail financing, and automobile financing. Subsidiaries include Home Trust (residential/commercial mortgages, Visa credit cards, reverse mortgages), Oaken Financial (direct-to-consumer deposits), Eden*Park* (automobile financing), Fig (digital lending), and Home Bank (GICs). The family of brands collectively offers residential and commercial mortgages, consumer deposits and GICs, credit cards, retail and automobile financing, personal loans, and digital lending through more than 255 branches coast to coast and online, with a combined history of nearly 100 years in Canadian lending.

Differentiator

Problem solved

Functional benefit

Brands

• Home Trust: Residential and commercial mortgages, Visa credit cards
• Home Bank
• Oaken Financial
• Eden*Park*
• Fig
• Fairstone Financial

Products and services

• Fairstone Credit Card Services Credit card issuance and tailored co-branded programs for consumers and retail partners, including interchange and annual fee revenue, with rewards programs for Walmart and First National branded cards.
• Fairstone Personal Loans Unsecured and secured personal loans, including home equity loans and mortgage refinancing options, offered online and at more than 255 branches coast to coast to Canadian consumers.
• Fig Digital Lending Innovative digital lending platform from Fairstone Bank subsidiary Fig, providing online personal loans to Canadians.
• Fairstone Retail Financing Retail point-of-sale and business financing programs offered through Fairstone Bank to Canadian retail partners, enabling consumer purchase financing at the point of sale.
• Home Trust Residential Mortgages Residential mortgage products from Home Trust for alternative and near-prime borrowers who do not qualify at prime lenders, including first-time homebuyer, refinancing, and renewal options.
• Home Trust Commercial Mortgages Commercial mortgage products from Home Trust for purchasing and refinancing commercial properties, serving both owner-occupiers and real estate investors with small and large deal sizes.
• Home Trust Visa Credit Cards Suite of three Visa credit cards issued by Home Trust: Preferred Visa for rewards, Equityline Visa for home-equity-secured revolving credit, and Secured Visa for credit building.
• EquityAccess Reverse Mortgage Reverse mortgage product suite from Home Trust for Canadian homeowners aged 55 and older, enabling conversion of home equity into tax-free, payment-free funds, distributed through the mortgage broker network.
• Eden*Park* Automobile Financing Automobile financing from Fairstone Bank subsidiary Eden*Park*, offering fast and flexible vehicle financing to Canadians through dealerships coast to coast.
• Oaken Financial Consumer Deposits and GICs Direct-to-consumer deposits from Oaken Financial, including high-interest savings accounts and Guaranteed Investment Certificates with terms from one to five years, providing Canadians a competitive self-directed savings alternative.
• Home Bank GICs Broker-distributed Guaranteed Investment Certificates from Home Bank, sold through brokers and investment advisors at most Canadian financial institutions.

Quantifiable outcome

• Mortgage impairment ratio of 2.2% as of Q2 2025, up from 0.3% at end-2022, indicating exposure to credit pressures in near-prime segment

Named customers3 records

Segments5 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Eight partnerships are on record, tiered minor and core.

• ISS (Institutional Shareholder Services)minorOthers · 26 January 2026Independent proxy advisory firm recommended that Laurentian Bank shareholders vote FOR the transaction resolution to approve Fairstone Bank's acquisition at $40.50 per share in cash.
• Glass LewisminorOthers · 26 January 2026Independent proxy advisory firm recommended that Laurentian Bank shareholders vote FOR the transaction resolution to approve Fairstone Bank's acquisition at $40.50 per share in cash.
• Laurentian Bank of CanadacoreStrategic or Co-development Partner · 2 December 2025Fairstone Bank of Canada agreed to acquire all outstanding common shares of Laurentian Bank for approximately $1.9 billion in cash at $40.50 per share (20% premium). Shareholders voted 98.77% in favor on February 5, 2026. Transaction expected to close in late 2026 pending regulatory approvals.
• National Bank of CanadacoreStrategic or Co-development Partner · 2 December 2025Coordinated transaction structure where Fairstone acquires Laurentian Bank's commercial operations while National Bank of Canada acquires Laurentian's retail and SME banking portfolios (totaling ~$4.1B in loans and ~$8.2B in deposits) and syndicated loan portfolio (~$0.9B).
• Home Trust CompanycoreGTM or Marketing Partner · 30 October 2025Fairstone Bank of Canada and its subsidiary Home Trust Company partner on Financial Literacy Month initiatives, including the third annual 'Check Your Credit Score Day' on November 2, 2025, to promote financial confidence among Canadians.
• WalmartcoreGTM or Marketing PartnerFairstone Bank issues the Walmart Rewards Mastercard and Walmart Rewards World Mastercard, building brand equity, driving loyalty, and delivering valuable insights for the retail partner.
• First National Financial LPcoreGTM or Marketing PartnerFairstone Bank issues the Home Equity Secured Mastercard under First National brand, providing credit card services as part of a co-branded partnership.
• MastercardcoreTechnology or IntegrationMastercard International is the credit card network partner for Home Trust Visa credit cards and co-branded cards including Walmart Rewards Mastercard and Home Equity Secured Mastercard.

Scale indicators6 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Canadian Western Bank: Western Canada-focused Schedule I bank with comparable size, offering commercial lending, deposits, and equipment financing. Direct competitor in commercial mortgages and a benchmark for Fairstone's post-Laurentian commercial banking ambition.
• Tangerine (Bank of Nova Scotia subsidiary): Direct-to-consumer Canadian digital bank offering savings accounts, GICs, mortgages, and credit cards. Competes directly with Fairstone's Oaken Financial and Fig brands in the alternative consumer banking space.
• Home Capital Group: Former direct competitor in alternative Canadian residential mortgages and deposits; was acquired in 2023 but continues to operate under similar alternative-lending positioning. Directly comparable business model to Fairstone's Home Trust subsidiary.
• Equitable Bank (EQ Bank): Canadian Schedule I bank and the closest direct peer to Fairstone, also focused on alternative residential and commercial mortgages, GICs, and high-interest savings via the EQ Bank digital brand. Competes head-to-head in the same near-prime borrower and broker-distributed mortgage segment.
• VersaBank: Canadian Schedule I digital bank providing deposit products, lending, and point-of-sale financing. Smaller scale but operates in the same alternative/digital banking niche, with comparable GIC and deposit-gathering franchise.
• Laurentian Bank of Canada: Canadian Schedule I bank currently being acquired by Fairstone for ~$1.9B. Direct competitor in commercial banking, retail deposits, and mortgages; relevant both as a transaction counterparty and as a peer benchmark for Fairstone's pre-deal scale.
• President's Choice Financial (Loblaw): Canadian retail-affiliated deposit, GIC, and credit card provider (PC Optimum, PC Money). Overlaps with Fairstone's Oaken Financial deposits and Walmart Rewards Mastercard in the consumer card/deposit market.

Emerging players

• Neo Financial: Canadian fintech offering a Mastercard credit card, savings accounts, and retail partnerships. Emerging competitor in the consumer credit card and deposit space where Fairstone's co-branded cards operate.
• Wealthsimple: Canadian financial platform offering investing, savings, and chequing accounts. Emerging competitor for retail deposits and consumer financial products, with growing overlap in the alternative retail banking space.
• KOHO Financial: Canadian fintech offering prepaid Mastercard, credit building, and high-interest savings. Niche competitor to Oaken Financial and Fig on the digital consumer deposit/lending side.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/fairstone

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Subsidiaries6 records

Funding overview

Funding rounds5 records

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Fairstone Bank of Canada