Frequently asked questions

The full list of our most commonly asked questions and concerns.

About Fraction

What exactly does Fraction do?
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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 based on the appreciated growth of the home. 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?
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Fraction offers no monthly payments and no payment penalties. Our interest rate is based on your home's appreciation and we work with primary, secondary and investment properties. 

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

Which areas do you lend in?
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Currently, Fraction lends in British Columbia and Ontario. We lend in Washington state in the United States.

Homeowner information

How is my home’s initial value determined?
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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? 
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Yes, if you have 56% 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?
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Absolutely. If you want to contact the team and ask any further questions about your circumstances, you may contact us at contact@fraction.com.

Be sure to include the province you’re inquiring about so we can better assist you.

Why do people choose Fraction?
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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 optional monthly payments* and an interest rate tied to their local market's value.

Who can use Fraction?
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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 56% equity in your home
What's the catch?
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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?
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You decide. Fraction will receive payment when you sell the home or choose to payout Fraction.

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

What if I already have a mortgage?
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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? Visit fraction.com/estimate to learn more!

How do I know I can trust Fraction?
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We've built the Fraction Mortgage with no required 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. Other home loan products' interest rates are either fixed or are based on the bank. Fraction's interest rates are based on your home's appreciation, with a minimum and maximum cap and no required monthly payments.

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

Broker information

Does Fraction work with mortgage brokers?
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Yes! We have many trusted broker partners across North America. Fraction helps mortgage brokers provide their clients with innovative financial solutions.

To learn more and to apply to work with us, visit www.fraction.com/broker

Interested in learning more?

Our Blog

Fraction Basics

Our Story

Ready to tap into your home equity?

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