Fraction currently operates in British Columbia, Ontario, and Washington state. Not in those locations? You can still apply and join our waitlist (coming soon) to find out when we launch in your area!
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Fraction Mortgage is available in WA with more states to come.
Equal Housing Opportunity
This site is not authorized by the New York State Department of Financial Services. No mortgage solicitation activity or loan applications for properties located in the State of New York can be facilitated through this site.
The interest rate for the Fraction Mortgage is calculated based on an Index, which is the Zillow Home Value Index (ZHVI), which is published at https://www.zillow.com/research/data/ on the third Thursday of each month. The interest rate at a given date during the term will be calculated as the change in the ZHVI from the initial date of origination up to that given date during the term. The minimum APR for a 5 year Fraction Mortgage is 6.20% and the maximum APR is 12.20%. The minimum APR for a 10 year Fraction Mortgage is 7.57% and the maximum APR is 15.91%.
The Fraction Mortgage is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will match the interest rate of the existing principal.
You will be responsible for both a lending fee and an origination fee, which combined could total up to 2.5% of your initial draw, depending on the state in which your property is located. You may also be responsible for paying recording fees, which vary by county, as well as inspection and appraisal fees, which vary by property.
Our loan amounts range from a minimum of $50,000 to a maximum of $1,500,000. Your maximum loan amount may be lower than $1,500,000 and will ultimately depend on your home value at the time of application. We determine your home value through independent data sources, automated valuation models, and third-party appraisals.
To check whether you might qualify for a Fraction Mortgage, we will conduct a soft credit pull that will not affect your credit score. However, if you continue and submit an application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
The Fraction Mortgage is a lending product with a fixed-term and secured against a property. Interest accrues over the term of the loan, with no monthly payments owed over the loan term. The Fraction Mortgage is available to homeowners over 18 years old. Fraction will accept applicants with a minimum FICO credit score of 640. An inspection may be required if your loan balance exceeds $1,000,000 and will cost approximately $750. Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone. Other taxes and government fees may be charged by your county and/or state. All fees other than the origination fee are paid to third parties and will be based on the actual cost of the services. The minimum term is 5 years and the maximum term is 10 years.
Repayment is due at the end of the term and can be paid at any time up to and including the end of the loan term. Renewal options are available pending a new credit check and sufficient equity in the property.