Fraction vs. HELOCs

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

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A Fraction Mortgage is a flexible way to access your home equity.

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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 50% on average simply by eliminating monthly payments.
No monthly payments
You owe nothing for up to 5 years.

With a Fraction Mortgage, you can unlock a portion of your home's equity at a fair rate with no monthly payments.

Need to leave sooner? No problem. We don’t charge prepayment penalties.
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Lock in a fair rate
Our terms are fair and favour you, the borrower.

Fraction's terms are clear and simple, and we will walk you through the whole process to make sure you understand everything before you sign.

The best part? No monthly payments, ever.

We’re making a lot of people happy

Trustpilot Stats
We were very pleased with Fraction

We were very pleased with Fraction. We were looking for a reverse mortgage but told we didn't qualify. Fractions is the same idea but has better options. We were explained everything thoroughly and could easily contact them when we had questions. We were always treated with respect. Completely satisfied!!!

James & Wendy
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Excellent Option

A fair, flexible and life changing option. Highly recommend Fraction.

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Excellent service.

Excellent service. Everything was executed perfectly great communication skills with fraction in my mortgage broker and lawyers it certainly has given me great comfort to have switched to fraction. The product that fraction offered me was the perfect solution I am so happy that I made this choice.

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An Ideal Product and Process

I find this product (being able to access equity and not having to make monthly payments) as ideal for my financial situation at the present time. The process was extremely seamless to follow, and the human interaction was cordial and efficient.

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We found Fraction through our broker

We found Fraction through our broker. What an amazing product! We are mortgage free and purchased a 2nd property but weren't prepared to start making huge mortgage payments again. This worked perfectly for us.

A. Johns
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Just what we needed when we needed it

My family and I were able to tap into the value in our home, which was not available to us through standard lenders/banks. So far our expected interest rate is holding as the central bank tackles inflation and raises rates. This innovative product allowed us to get into a home we own and bought us time to get our financial circumstance to where we could access traditional lending. Just what we needed when we needed it

Charles C.
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What an unbelievable deal!

I still can’t believe this incredible deal I got which made it possible to purchase my retirement dream home. I have been telling everyone I know about Fraction and recommending you. Thank you so much Daniel and all the professional at Fraction! I look forward to doing more business with you in the future.

Daryl R.
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Fraction has been the light at the end…

Fraction has been the light at the end of the tunnel for me, at least for now and i look forward to a longer relationship

Elvin M.
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Fraction was the ideal mortgage product for us…

“...Fraction offered us an opportunity that was best for us at this point in our 73-year-old lives, and with the house that we're living in. We're hoping for continued appreciation of our home over the next 5 years, so that this deal will turn out to be a 'win-win' for us, as well as for Fraction. They managed to come up with a brilliant mortgage product, that segues perfectly into what the current mortgage market does NOT offer.”

James K.
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Great process and very friendly people.

From start to finish, my experience was no less than stellar. They explained the process, the paperwork, what was going to happen from point to point. Saki was a great guy to deal with and was very understanding of my specific issues and how to overcome them. Highly recommend dealing with Fraction if you are looking for this type of mortgage.

Jeff P.
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I'm so grateful for Fraction.

I'm so grateful for fraction, it came right when I needed it. I didn't have to wait till I was 55 years old, I am currently 50. They were helpful and quick, they answered all my questions quickly and in detail. I will definitely do business with them again in the future. Fraction has given me the chance to live my dream life! Thank you Fraction.

Carlo S.
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Win! Win! I have been dealing with Fraction for…

I have been dealing with Fraction for about 6 months now and have 5 properties with them. They have helped my husband and I realize our dreams of owning 5 properties. Using the equity in our homes we are able to renovate the properties to our liking. This benefits both Fraction and ourselves by increasing the value of the homes. It's a win, I win!

Patricia L.
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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

  • Accessing tax-free cash to upgrade or repair their homes

  • To help their children purchase their first home

Side by side comparison

Our mortgage allows you to access a portion of your home’s equity at a fair rate with no monthly payments, while maintaining and retaining your home.

There's no monthly payments and no repayment penalties.

Fraction helps you turn your dreams into reality.

Home equity line of credit
No monthly payments
No monthly payments
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Stay in your home
Stay in your home
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Qualify at any age
Qualify at any age
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No early buyout penalties
No early buyout penalties
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Interested in a pricing comparison between all these options?
Visit the cost page

Frequently asked questions

Go through our most asked questions below, and visit our FAQs page for more detailed questions.

How is my home’s initial value determined?

Following a third-party appraisal of your home and a check of all your information, you may or may not be approved for a Fraction Mortgage.

Based on your application and the appraised value of your home, Fraction will determine how much cash you qualify for. Upon a deeper review, we will provide you with documentation outlining your funding amount and corresponding terms and conditions. Once you sign the final documents, we send you your money. 

Learn more here, in our Fraction Basics modules.

Can this help me buy a home? 

Yes, if you have 60% down on a home, you can work with Fraction to purchase the home with no monthly payments.

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 you’re inquiring about so we can better assist you.

Why do people choose Fraction?

Often homeowners seek ways to unlock equity in their homes for large expenditures or diversifying income – examples include funding home renovations, consolidating or paying off debt, launching a business, or purchasing a secondary residence. 

While in need of solutions, many homeowners aren’t interested in taking on more debt.

Fraction allows them to access the built-up equity in their homes with no monthly payments and an interest rate tied to their local market's value.

What exactly does Fraction do?

The Fraction Mortgage helps homeowners to access the value locked in their homes with no monthly payments. 

They can use the cash for anything, from paying off credit-card debt to starting a business to buying a second home.

When the term ends, the house sells, or the homeowner exits the loan, Fraction is paid back. Homeowners can pay back the loan at any time within the 5 year term. 

Learn more here, in our Fraction Basics modules.

What’s the difference between Fraction and other traditional mortgages?

Fraction offers no monthly payments and no payment penalties. Unlike reverse mortgages, we have a 5-year term and do not have any age restrictions.

See how Fraction stacks up against the rest by visiting our blog for more financial product comparisons

Who can use Fraction?

Anyone who owns a home and has enough equity built up can work with us. We have no age restrictions. 

Since there are so many factors that contribute to partnering with Fraction, each property is evaluated independently. Working with Fraction starts with getting a free estimate. With our estimate tool you can see how much tax-free cash you qualify for, with no impact to your credit score.

From there, after a hard pull credit check (which may impact your credit score) and official appraisal of your home, we’ll send you an agreement for your review. Here are some of the things we screen for before we lend:

  • The single-family dwelling is located in a province or state in which we’re currently operational
  • A 640 credit score
  • A minimum of {{min_equity}} equity in your home
Which areas do you lend in?

Currently, Fraction lends in British Columbia and Ontario.

What's the catch?

There is no catch. Fraction was built to offer homeowners everywhere a more flexible and fairer option for accessing money.

Fraction is a great option for those who aren’t best served by other options in the market. We allow people to take money out and diversify it, buy an investment property or second home, help a child with a down payment, or invest in a new business venture are the main reasons why we exist. The use cases are vast, and each individual's choice to use Fraction is different and nuanced. 

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 pay back Fraction. At the end of the 5 years, if you qualify, you can refinance with Fraction, otherwise you will have to refinance with another mortgage lender in order to pay back Fraction.

How is Fraction compensated? Why are you offering this type of financing?

Fraction makes money from our interest rate and our origination fees. Fraction offers this financing because millions of homeowners want to be able to take cash out of their home without linking it to monthly cash outflows or having to sell. 

It gives people financial freedom and another way to live their life to the fullest. Fraction may not work for everyone. For those that aren’t best served by other options in the market, the ability to take money out and diversify it, buy an investment property or second home, help a child with a down payment, or invest in a new business venture are the main reasons why we exist.

Is Fraction a first lien or second lien loan?

First lien.

What if I already have a mortgage?

It depends. If you have an existing mortgage, you must have enough built up equity in your home to qualify for Fraction. We do require that you pay off your existing mortgage to work with us (you can use Fraction to pay off your existing mortgage).

Wondering if you qualify? Get started with an estimate here →

How do I know I can trust Fraction?

We've built the Fraction Mortgage with no monthly payments and penalties, no hidden fees, and removed all of the confusing financial jargon to help you find the right financial solution to meet your needs.

We keep things simple and fair for homeowners everywhere. Fraction's terms are clear and simple, and we will walk you through the whole process to make sure you understand everything before you sign.

Plus, Fraction has raised more than USD$250 million from international investors in Canada, the US, and Europe. Our world-class investors share our vision to change how homeownership works.

Does Fraction work with mortgage brokers?


View more FAQs

Interested in learning more?

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Our Blog

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Fraction Basics

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The FAQ's

Ready to tap into your home equity?

Applying for a no monthly payments Fraction Mortgage is free and fast. We’re talking 5 minutes, with no impact on your credit score.