Fraction is now live in Alberta
We are thrilled to announce our expansion to Alberta!
Fraction is thrilled to announce our expansion to Alberta. Aside from the obvious, that people live there, why are we launching in Alberta?
Fraction’s current product line-up has customers ranging from as young as 18 to well over 90 years of age. However, our sweet spot is those aged 50-60, who are looking to take money from their hard-earned home equity without the burden of monthly payments. These folks are typically starting to think about retirement and are potentially looking to accelerate retirement. Fraction fits well into plans that eventually result in downsizing or moving to a cottage or other property.
Alberta’s population is 4.8 million, and is projected to rise to over 7 million by 2050. Calgary and Edmonton are of course major urban centres in Canada with their rapidly diversifying economies, but in addition, Red Deer, Lethbridge, and Grand Prairie are growing rapidly. This is all well and good, but the bigger change happening in Alberta is that people are choosing to retire in Alberta. No longer is Alberta a place for migrants from other parts of Canada to come, earn money, and leave once they have enough, retiring to BC, the Maritimes or Ontario. There are 540,000 people in Alberta between the ages of 50-60, representing about 11% of the population. This is expected to grow to 1 million by 2050, or 14% of the population.
The total value of residential real estate in Alberta is approximately $700bn, and approximately 40% of those aged 50 to 60 have no mortgage in Alberta. This is what excites us about Alberta, and we are delighted to be able to operate in the province.
We also look forward to seeing some technological innovation within Alberta. Land title in Alberta is materially antiquated compared to British Columbia or Ontario. There is no way via API to access land title, and much of the post-closing work remains paper-based rather than digital. We look forward to working with regulators and other stakeholders to innovate within Alberta to offer Albertans a better, safer, and easier experience as they buy, sell and finance their homes.
