Funding process
Funding process
Once you’ve pre-qualified for a Fraction Mortgage and received your estimate, we will get started on the formal application process.
Here’s everything you need to know about the funding process:
Underwriting
Upon submitting your online application, Fraction’s underwriting team will verify your information and assess whether your property pre-qualifies for a Fraction Mortgage. Learn more about the application process here.
Receiving your commitment letter
If you pre-qualify, a Fraction representative will reach out with a commitment letter. Signing this document signals your intent to move forward with the funding process. We encourage you to retain a financial advisor and lawyer at this time to help you navigate the loan process.
The introduction call
Once you’ve signed the commitment letter, Fraction will organize an introduction call to give you, your co-applicants, and your broker (if applicable) a chance to learn more about the funding process and to ask any questions about working with Fraction.
Booking an appraisal
At the time of receiving your commitment letter, you will receive a link through which you can pay for an appraisal. Once payment is made, an independent, third-party appraiser will reach out to you to schedule a visit.
A home inspection will also be required if the loan amount exceeds $1,000,000. Similar to your appraisal, an inspector will reach out to schedule a visit.
Based on your application and the appraised value of your home, our team will determine how much home equity you qualify to access.
Filling out important legal documents
Fraction requires a few supporting documents to confirm details from your application. This will include verifying your income, assets, debts, and other aspects relating to your financial situation.
Before signing, you must take the Fraction knowledge quiz to verify that you understand the product and the agreement. Moreover, we highly recommend that you meet with your lawyer to go over the documents before signing.
Reviewing your knowledge of Fraction
Fraction will send you the Fraction knowledge review quiz via a link in your commitment letter to go over the details of the mortgage. You will be required to pass the quiz before signing final documents and receiving your funds.
Reviewing your final documents with a lawyer
This is the home stretch! Based on the appraisal and the supplementary documents provided, we will provide you with documentation outlining your funding amount and corresponding terms and conditions. At this time, you will meet with your lawyer to review, sign, and submit the final documents.
Independent legal advice is an out-of-pocket expense and varies by lawyer. Borrowers can expect fees ranging anywhere from $900 to $1,500.
Receiving your funds
After final documents are signed and you complete our knowledge review exercise, your lawyer will receive the funds within the next 4-7 business days. Upon receipt, they will wire the funds to your account or give you a cheque to deposit at your personal bank.
Once you receive your funds, the sky’s the limit — invest in a home upgrade or repairs, start a new business or pay down existing mortgages or debts.
Where can I access my funds?
Delays are rare but they happen. If you’ve been notified of successful funding but you or your lawyer do not receive your funds within 4-7 business days, we encourage you to contact us.
