Fraction vs. Cash-Out Refinancing

Don’t borrow against your future self with a cash-out refinance.

Fraction lets you unlock up to 50% of your home's value and keep your hard-earned equity. 

We make the qualification process simple, without high rates and strict income requirements.

A Fraction HELOC is an easy and flexible way to access your home equity.

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.*
Optional monthly payments*
You owe nothing for up to 10 years with our optional monthly payments.

With the Fraction HELOC, you can unlock up to 50% of your home’s equity at a fair rate.

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

Fraction's HELOC rate is based on the appreciation of your home with a minimum rate of 3.49% (3.91% APR)* and a maximum rate capped at 7.99% (8.42% APR)* for a 5-year term.

Trustpilot testimonials

Don't just take our word for it. See what others are saying about us on Trustpilot.
"I was thrilled to choose fraction for my mortgage it really solved a lot of life for me. The process was smooth and even though I had a mortgage broker, the folks at fraction were always there to talk to me and make sure I understood where we were at all parts through the transaction."
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by Jeff S.
"Fraction was the lender my mortgage specialist was most impressed with. They work remotely and are definitely easier to deal with than a bank. They simply don't have the restrictions that banks have. I highly recommend them to anyone looking to get equity out of their home."
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by Christine M.
"Fraction provided exactly the product I needed for my plans and lifestyle. My broker explained all the details really well and was always a call away for advice and to update information. The process was simple, and communication excellent."
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by Lawrence E.
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How a Fraction HELOC can work for you

Traditional HELOCs can be rigid and come with several downsides, including ongoing costs and monthly payments. 

Fraction's HELOC is the most flexible option available. We allow you to access up to 50% of your home’s equity at a fair rate with no monthly payments.*

Fraction offers you a lump sum amount that you can use to save for retirement, help your loved one save for a downpayment, or invest in long-term healthcare insurance. 

You've invested in your home. Now it's time for your home to invest in you.

Side by side comparison

Cash-out refinancing is a way to use your home’s equity to refinance your existing mortgage. This type of refinancing allows you to use your home equity to replace an existing mortgage with a new one with a higher loan balance and potentially higher rates. Not to mention, the qualification process for a cash-out refinance is quite restrictive.

Extending your mortgage means paying more interest overall. The small benefits of a cash-out refinance are often negated by their high costs. This includes reducing the amount of money you have in your home at the end of your homeownership, taking on higher rates, and adding more years to your mortgage. 

While both Fraction and a cash-out refinance are a first lien mortgage, a cash-out refinance comes with mandatory monthly payments. With Fraction, you decide when you pay. 

Our first-lien HELOC allows you to access up to 50% of your home’s equity at a fair rate with optional monthly payments* all while maintaining and retaining your home. Our minimum interest rate is 3.49% (3.91% APR)*, and it will only go above this rate if your home equity grows.

We make the qualification process simple, without high rates and strict income requirements.

Interested in Fraction® HELOC?

See if you prequalify for a Fraction® HELOC in minutes.
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FAQs

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.

Which areas do you lend in?

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Currently, Fraction lends in British Columbia and Ontario (Canada). In Ontario, if you don't have an existing mortgage broker, Fraction will refer your inquiry to a registered third-party mortgage brokerage during the process. We lend in Washington state in the United States.

What are the costs associated with Fraction?

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Fraction uses third-party appraisers and inspectors and these costs are borne by you. In addition, we require you to get independent legal advice and there are conveyancing and title insurance costs. Fraction charges a fee of 2.5% of the initial loan amount.

I have multiple homes. Can I use Fraction for all of them?

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Yes you can - Fraction can lend up to $2M to a single person, with a maximum of $1.5M per property.

How will I receive my money?

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Once all documents are signed and the charge is put on title, Fraction puts the money right into your bank account.

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