How Fraction works and what it costs
See how much you could access today, and what it’ll cost you.
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.
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:
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.
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:
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.
Want to exit your loan earlier? No problem. Fraction does not charge any prepayment fees.
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
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
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!!!
A fair, flexible and life changing option. Highly recommend Fraction.
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.
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.
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.
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
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.
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
“...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.”
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.
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.
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!
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 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.
Yes, if you have 59% down on a home, you can work with Fraction to purchase the home with no monthly payments.
Absolutely. If you want to contact the team and ask any further questions about your circumstances, you may contact us at email@example.com.
Be sure to include the province you’re inquiring about so we can better assist you.
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.
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.
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
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
Currently, Fraction lends in British Columbia and Ontario. We lend in Washington state in the United States.
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.
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.
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.
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 →
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.
Yes! We have many trusted broker partners across North America. Fraction helps mortgage brokers provide their clients with innovative financial solutions.