Fraction vs. Cash-Out Refinance

Don’t borrow against your future self with a cash-out refinance.

Fraction lets you unlock up to 50% of your home's value and keep your hard-earned equity.

We make the qualification process simple, without high rates and strict income requirements.

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

Make your home equity work for you
When you take cash out of your home with a cash-out refinance, you are borrowing from your future self, reducing the equity you end up with in the long run.

Fraction helps you keep your cash where it belongs: in your pocket.
No monthly payments* or prepayment penalties
You owe nothing for up to 10 years.

With a Fraction Appreciation Mortgage, you can unlock up to 50% of your home’s equity at a fair rate.

Need to leave sooner? No problem. We don’t charge prepayment penalties.
Lock in a fair rate
A cash-out refinance extends your existing mortgage with higher rates and more fees. This means paying more interest overall.

Our rate is based on the appreciation of your home with a minimum rate of 3.49% (4.0% APR) and a maximum rate capped at 7.99% (8.26% APR). 

Trustpilot testimonials

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."
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by Jeff S.
"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."
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by Christine M.
"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."
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by Lawrence E.
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How Fraction's Appreciation 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
  • Accessing tax-free cash to upgrade or repair their homes
  • To help their children purchase their first home

Side by side comparison

Cash-out refinancing is a way to use your home’s equity to refinance your existing mortgage. This type of refinancing allows you to use your home equity to replace an existing mortgage with a new one with a higher loan balance and potentially higher rates.

Extending your mortgage means paying more interest overall. The small benefits of a cash-out refinance are often negated by their high costs. Including reducing the amount of money you have in your home at the end of your homeownership, taking on higher rates, and adding more years to your mortgage.

A Fraction Appreciation Mortgage allows you to access up to 50% of your home’s equity at a fair rate with no monthly payments while maintaining and retaining your home.

Our minimum interest rate is 3.49% and it will only go above this rate if your home equity grows. There’s no extra debt, no monthly payments, and no prepayment penalties.

Interested in a Fraction® Appreciation Mortgage?

See if you prequalify for a Fraction® Appreciation Mortgage in minutes.
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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?


Currently, Fraction lends in British Columbia and Ontario (Canada). In Ontario, if you don't have an existing mortgage broker, Fraction will refer your inquiry to a registered third-party mortgage brokerage during the process. We lend in Washington state in the United States.

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.

I have multiple homes. Can I use Fraction for all of them?


Yes you can - Fraction can lend up to $2M to a single person, with a maximum of $1.5M per property.

How will I receive my money?


Once all documents are signed and the charge is put on title, Fraction puts the money right into your bank account.

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