Fraction vs. HELOCs

Unlock your home equity with the Fraction Mortgage. It's a flexible and fairer alternative to traditional HELOCs and home equity loans.

Side by side comparison

The Fraction Mortgage allows you to access up to 45% of your home’s equity at a fair rate with no monthly payments, while maintaining and retaining your home.   

The minimum interest rate for the Fraction Mortgage is 4.85% for a 5 year term, and it will only go above this rate if your home equity grows. There's no extra debt, no monthly payments and no repayment penalties.

Fraction helps you turn your dreams into reality.

A Fraction Mortgage is an easy and flexible way to access your home equity.

Make your home equity work for you
Life comes with expected or unexpected expenses—investments, college education, health bills, renovations, and more. 

Fraction can potentially help you reduce your debt to income ratio (the amount you spend monthly paying back debt) by up to 45% on average simply by eliminating monthly payments.
No monthly payments
You owe nothing for up to 10 years. With the Fraction Appreciation Mortgage, you unlock up to 50% of your home’s equity at a fair rate.

Need to leave sooner? No problem. We don’t charge repayment penalties.
Lock in a fair rate
Unlike a traditional reverse mortgage, our terms are fair and favour you, the borrower.

Our rate is based on the appreciation of your home with a minimum rate of 4.85% and maximum rate capped at 9.85% for a 5 year term.

That means no matter the market situation, you’re protected. 

How a Fraction Mortgage can work for you

An appreciation mortgage is a way for homeowners to access their home equity.
Fraction customers have tapped into their home equity for many reasons including:

- debt consolidation
- paying down existing mortgages
- tax-free cash to upgrade or repair their homes
- to help their children purchase their first home

Hear it from our customers

Don't just take our word for it. See what others are saying about us on Trustpilot.
"I was thrilled to choose fraction for my mortgage it really solved a lot of life for me. The process was smooth and even though I had a mortgage broker, the folks at fraction were always there to talk to me and make sure I understood where we were at all parts through the transaction."
Trustpilot star ratingTrustpilot star ratingTrustpilot star ratingTrustpilot star ratingTrustpilot star rating
by Jeff Streifel
"Fraction was the lender my mortgage specialist was most impressed with. They work remotely and are definitely easier to deal with than a bank. They simply don't have the restrictions that banks have. I highly recommend them to anyone looking to get equity out of their home."
Trustpilot star ratingTrustpilot star ratingTrustpilot star ratingTrustpilot star ratingTrustpilot star rating
by Christine Morley
"Fraction provided exactly the product I needed for my plans and lifestyle. My broker explained all the details really well and was always a call away for advice and to update information. The process was simple, and communication excellent."
Trustpilot star ratingTrustpilot star ratingTrustpilot star ratingTrustpilot star ratingTrustpilot star rating
by Lawrence Evenchick
Visit our Trustpilot

Interested in a Fraction® Mortgage?

See if you prequalify for a Fraction® Mortgage in minutes.
Get an estimateWhite clipart house with green roof


If there are no monthly payments, when do I pay Fraction back?


You decide. Fraction will receive payment when you sell the home or choose to payout Fraction.

I don’t want to add all of my information into the form right now. Is there another way to contact the team?


Absolutely. If you want to contact the team and ask any further questions about your circumstances, you may contact us at Be sure to include the province or state you’re inquiring about so we can better assist you.

Is Fraction a first lien or second lien loan?


Fraction must be the first lien or charge on your property at the time of origination and until your term ends. This means that you cannot have other liens on the property at the time of signing with Fraction.

Which areas do you lend in?


In Canada, Fraction lends in British Columbia and Ontario. In the US, Fraction lends in Washington State.

What are the costs associated with Fraction?


Fraction uses third-party appraisers and inspectors and these costs are borne by you. In addition, we require you to get independent legal advice and there are conveyancing and title insurance costs. Fraction charges a fee of 2.5% of the initial loan amount in Canada and up to 2.5% in Washington State in the US.

Read full FAQ