How Fraction works and what it costs

See how much you could access today, and what it’ll cost you.

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01

Apply

01

In just 5 minutes, complete an application to learn how much equity you can access. It’s completely free and won’t affect your credit score.

When applying, you will be required to share information that will give us a better picture of your financial and homeowner history.

Don't worry if you don't have everything on hand; our team will work with you to figure out what you need.

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Maximum equity (LTV)

The maximum amount of equity you can unlock from your home.

Maximum equity (LTV)

The maximum amount of equity you can unlock from your home.

41%
Interest rate

Fraction offers a variable interest rate based on house appreciation.

Interest rate

Fraction offers a variable interest rate which varies based on your term and house appreciation.

7.99% - 12.49%
5 year term
Apply now
02

Approve

Following a third-party appraisal of your home and a check of your information, our team will confirm if you meet our approval requirements. Based on your appraised home value, Fraction will determine how much cash you qualify for. Fraction is able to fund in less than 10 days.

Costs in this stage include:

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Home appraisal

Appraisal costs are out-of-pocket and will generally range between $400 to $600 based on the property size and type.

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Independent legal advice

Costs for independent legal advice vary based on your lawyer. Borrowers can expect fees ranging anywhere from $900 to $1,500.

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Conveyance & title insurance

Conveyancing will generally come to around $2,000 and typically includes title insurance.

02

Receive funds

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Once all documents are signed and you complete our knowledge review exercise, you’ll have a percentage of your hard-earned equity at your disposal.

You choose what you do with the funds! Invest in a home upgrade or repairs, start a new business or consolidate your existing debts — the sky’s the limit!

This amount you receive will include:

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Origination fee Icon

Origination fee

Our origination fee for a 5 year term is 2.5%. If you choose to renew for another 5 years once your term ends, you’ll be subject to a 1% refinancing fee.

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Prepayment fees

Want to exit your loan earlier? No problem. Fraction does not charge any prepayment fees.

03

Check-in

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Every 5 years, we’ll check-in to reassess our agreement.  

You can choose to pay Fraction back or apply to refinance. If you choose to exit, you must repay the full lump sum you received plus interest.

Depending on your path, you will be required to pay either of the following:

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Pay back Fraction

Ready to exit your loan? The amount owed includes the remaining balance on the loan and the interest accrued.

When you’re ready to repay Fraction, the amount you pay back, with interest, is based on the appreciated value of your home.

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Refinance your loan

At the end of your term, you can choose to renew for another 5 year term.

Refinancing is contingent on several conditions including credit score and appraisal and is subject to a 1% refinancing fee.

04

How we determine your interest rate

At the end of your term, we calculate your interest rate based on the change in value of your home.

Move the slider up and down to see how your home appreciation is tied to your interest rate.
Home appreciation at 5.00%
maximum rate
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minimum rate
Interest rate is 0.24%
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Detailed pricing comparisons

Compare a
loan on my
home at an annual home growth of
over
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Monthly payment
Monthly Payment
$0
$333
Rate
Rate
3.88%
4.00%
Cash out of pocket
Cash out of pocket
$114,652
$115,046
Net cost
Net cost
3.80%
4.23%

Cash out of pocket - the total estimated amount needed to pay off the indicated loan. This is amount factors in: fees, principal, and interest/equity sharing.

Net cost - is your annual interest rate taking into consideration the lack of required monthly payments for the Fraction Mortgage, reverse mortgages, and home equity investments. This rate assumes that you'll earn 3% annual interest on the money saved over the term of the product by not making monthly payments.

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
Trustpilot Stats
Excellent Option

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

Stanley
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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.

Christian
Trustpilot Stats
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.

Dieter
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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.
Trustpilot Stats
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.
Trustpilot Stats
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.
Trustpilot Stats
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.
Trustpilot Stats
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.
Trustpilot Stats
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.

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 59% 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 contact@fraction.com.

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 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?

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

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 59% equity in your home
Which areas do you lend in?

Currently, Fraction lends in British Columbia and Ontario. We lend in Washington state in the United States.

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 payout Fraction.

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

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?

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?

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. 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 Canada, the US, and Europe. Our world-class investors share our vision to change how homeownership works.

Does Fraction work with mortgage brokers?

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

Learn more about partnerships here →

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