Application process

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Application process

Accessing your home equity has never been more fair and flexible. In just a few minutes, you can apply for a Fraction Mortgage and receive an estimate for how much equity you could access from your property*.

If this is your first time applying for a Fraction Mortgage, here’s everything you need to know about our application process.

What is a Fraction mortgage?

A Fraction Mortgage allows you to turn a portion of your home equity into tax-free dollars. There are no monthly payments when you borrow with a Fraction Mortgage.

You can use the funds from your Fraction Mortgage for just about anything — buying another property, home renovations, retirement income, or any large expense. With no monthly payments, you only have your balance to pay at the end of your {{term_length}} year term. Because there are no prepayment penalties, you can exit the mortgage at any time during the {{term_length}} year term with no additional fees.

After the {{term_length}} year mark, you can continue with no monthly payments required by refinancing your Fraction Mortgage for another term (subject to an appraisal, re-qualification and 1% refinancing fee).*

What makes Fraction unique?

At Fraction, we believe that all Canadians deserve financial products that allow them to live and age well. That’s why we created the Fraction Mortgage to be the fairest and most flexible way to access your home equity.

In addition to no monthly payments, a Fraction Mortgage has no age restrictions, unlike reverse mortgages.

No matter your income, credit score, or property, everyone qualifies for our lowest rate if approved for a Fraction Mortgage. See our latest rates here.

Qualifying for a Fraction Mortgage

In order to qualify for a Fraction Mortgage, you must:

• Be a Canadian homeowner
• Have a property located in Ontario or BC
• Have at least 60% of your home paid off

When you submit your application, we will consider the following:

• The type of property
• The appraised value
• The condition and location of your property
• Your credit score

We will also consider your income, but only to ensure you can cover property taxes, insurance, and other ownership expenses. We welcome applicants with self-employed or irregular incomes to apply.

How do I know if my property qualifies for a Fraction Mortgage?
There are many variables that can influence whether your property would qualify for a Fraction Mortgage. The property must be your primary residence.

The easiest way to determine if your property qualifies for a Fraction Mortgage is to input your address in our online application.

Before you apply

During the application, you and your co-applicants will be asked to provide information about your current financial status. 

Please have the following information ready before you apply:

Property information (property type, address, estimated value, mortgage balance)
• Income sources (employer, job title, annual income)
• Outstanding debts (creditor, debt type, debt balance, payment amount and frequency)
• Bankruptcy status
• Other owned properties (property type, address, estimated value, mortgage balance)

Recommended: During the online application, you will be asked to provide your Social Insurance Number to help us verify your identity and borrowing history. This soft pull on your credit history will not affect your credit score. However, to confirm your funding later in the process, we will do a hard pull on your credit.

Documents needed to apply for a Fraction Mortgage

In order to be approved for a Fraction Mortgage, you will be required to submit specific documentation. Here is a non-exhaustive list of required documents. What you submit will be based on your individual financial situation and what Fraction requests throughout the application process. 

Income: 2 years tax documents (employed/pension) or 6 months statements for current year if the borrower can’t show and 12 months of bank statements (self-employed)
Current mortgage statement*
Property tax details
Valid Photo ID
Homeowners Insurance Policy or Tarion (Purchase-new build)
Inspection (if applicable - deals exceeding $1mm)*
Credit card/line of credit/loan/other debt balance statements*
Separation agreement*
Power of Attorney (POA) docs* and pertaining ID for POA
Condo/Strata documents* (Condo Status Certificate, AGM Minutes, Financial Statements, etc., Insurance)
Purchase documents including MLS listing and proof of down payment*

*These documents and items may not be required, it depends on the file and situation of the client.

Ways to apply

In just a few minutes, you can apply for a Fraction Mortgage and learn how much equity you can access from your property.

Apply online
Our self-service online application is the easiest and fastest way to apply for a Fraction Mortgage. You can start your application at any time by visiting our online application.

We encourage you to contact us if you have any questions whilst completing the online application.

Apply through a broker
If you are a broker and working with a client that would benefit from the Fraction Mortgage, please visit our broker portal to join the Fraction Broker Partner program.

Getting approved

Once you submit an application, our team will review your submission to confirm whether you meet our qualifying requirements. We will also provide an initial estimate of the maximum mortgage loan amount available to you.

Other modules

Ready to tap into your home equity?

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