How Fraction works and what it costs
See how much you could access today, and what it’ll cost you.

Apply
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.

The maximum amount of equity you can unlock from your home.
The maximum amount of equity you can unlock from your home.
Fraction offers a variable interest rate based on house appreciation.
Fraction offers a variable interest rate which varies based on your term and house appreciation.
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:


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

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

Conveyance & title insurance
Conveyancing will generally come to around $2,000 and typically includes title insurance.
Receive funds
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:


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.

Prepayment fees
Want to exit your loan earlier? No problem. Fraction does not charge any prepayment fees.
Check-in
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:


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.

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.
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.
Detailed pricing comparisons

The total estimated amount needed to pay off the indicated loan. This amount factors in: fees, principal, and interest/equity sharing.
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
Frequently asked questions
Go through our most asked questions below, and visit our FAQs page for more detailed questions.
Following a third-party appraisal of your home, a hard credit pull, 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 through the Zillow Home Value Index, Fraction will determine how much 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.
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.
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
You decide. Fraction will receive payment when you sell the home or choose to payout Fraction.
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.
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 →