Help your clients put their mortgage payments on pause.
Fraction is the only lender in Canada that offers a no-payment mortgage for up to 5 years without payments and no exit penalties at any time.
Unlike other no-payments products that may only offer a one or two year term, Fraction gives borrowers the time to stop, assess, and make the right decision for their financial situation.
Find your BDM
Brokers make up the vast majority of Fraction's loan volume. Simply refer homeowners to Fraction and we’ll work with you to qualify and fund.
- We have a 24 business-hour turnaround on submitted files.
- Sell a 100%Â no-payments fully open loan to clients up to {{max_ltv_3_yr}}Â LTV.
- Fully open, no prepayment penalty options available!
- Must have an end-of-term exit plan and provide some proof of income (we can be flexible on how the documentation is provided).
- Client is responsible for both Independent Legal Advice and conveyancing costs.
Fraction's flagship product:Â our no-payments mortgage. Has your client had a shift in their life circumstances that means they need to hit pause on their mortgage while they get everything sorted out?Â
Fraction's no-payments mortgage gives them the breathing space they need, offering up to five year terms.
- 3 year rate:Â {{rate_3_yr}} at {{max_ltv_3_yr}} max LTV
4 year rate:Â {{rate_4_yr}} at {{max_ltv_4_yr}} max LTV.
5 year rate:Â {{rate}} at {{max_ltv}} max LTV.
- 660 minimum FICO score.
- Position:Â senior secured (1st position).
- ON, AB, and BC freehold primary residences.
- 3% origination fee
- Registration must be in a personal name.
- Max loan amount:Â $1,500,000.
A traditional private mortgage, offering either amortizing or interest-only loans, with occasional interest reserves also available by exception.
Generally requires more income than Fraction's no-payments product, but can be a better fit for customers looking for a product with more flexible underwriting criteria, or for those who wish to make some monthly payments.
- Rates starting 5.99%
- Max LTV: 65%
- Ontario, British Columbia, Alberta.
- Position:Â First or second, freehold or leasehold.
- Starting at 1% origination fee
- 6 months to 5 year terms.
- Max loan amount:Â
$2,500,000
- Min FICO: 600
Private Plus+Â has Fraction's most flexible underwriting criteria. Prices are generally higher, but if clients need more LTV or have lower FICO scores, we can generally still offer a solution that fits their needs.
- Rates starting 7.49%
- Max LTV: 75%
- Ontario, British Columbia, Alberta.
- Position:Â First or second, freehold or leasehold.
- Starting at 2% origination fee
- 6 month to 1 year terms.
- Max loan amount:Â
$1,000,000
- Min FICO: 500
Fraction Scenario Planner
Create a customized report that you can show your client on how a Fraction Mortgage might work for their property and particular situation.
Create a scenario planBroker resources
An overview of our private mortgage product with extended LTV and lower minimum beacon requirements
DownloadWant to submit deals to Fraction? Send this form over to your brokerage manager or owner to fill out and have them send it back to us.
DownloadAn overview of how fraction looks at income and what we require from clients.
DownloadIf your client is looking for a lawyer, here is a list of third-party lawyers who have provided ILR to Fraction clients in the past.
DownloadDesigned for mortgage professionals, learn about the steps involved in going from application to funding with Fraction.
DownloadDesigned for mortgage professionals, this outlines Fraction's product and gives an overview of Fraction's funding timelines.
DownloadA one-pager overview of Fraction's product offering for homeowners and their family members.
DownloadComparing two products that allow Canadians to unlock home equity with no monthly payments.
DownloadFraction requires appraisals for all properties and requires inspections for loan amounts above $1,000,000.
DownloadDesigned for borrowers, check out this easy step-by-step guide to learn the ins-and-outs of the Fraction funding process.
DownloadIs Fraction right for your client? Download this guide to learn the specifics about Fraction's underwriting criteria.
DownloadA detailed customer-facing brochure to help you explain the Fraction Mortgage to your client.
DownloadHow to find Fraction on Filogix Expert, Newton Velocity, and Finmo. A hint: it's under the "private lender" category.
DownloadQuick postal code check
Want to see whether a property area might be approved by Fraction? Enter in the first three digits of the postal code below.
Cost calculator
Detailed pricing comparisons
The total estimated amount needed to pay off the indicated loan. This amount factors in: fees, principal, and interest.
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
Frequently asked questions
Go through our most asked questions below, and visit our FAQs page for more detailed questions.
.svg){kind=icon}
Unlike most institutions in Canada, we do not use the prime rate for our loans. We use CORRA Swaps.
The prime rate from the Bank of Canada is not an actual rate. Each bank publishes its own prime rate, which is a reflection of its own cost of capital, and is partly informed by the overnight rate set by the Bank of Canada.
The prime rate the Bank of Canada publishes is simply the mode of the published prime rates of the 6 largest banks.
CORRA Swaps, by comparison, are informed by the market and reflect interest rate expectations over the term of each swap rate.
Our 3-year product uses the 2.5 year swap rate, our 4-year product uses the 3.5 year swap rate, and our 5-year product uses the 4-year swap rate. The shorter term for the swaps reflects the expected duration of each of our loan products.
To view the CORRAÂ swap rates yourself, you can visit https://www.chathamfinancial.com/technology/canadian-market-rates#view.
As there are no monthly payments with Fraction's product, it does indeed compound. Interest is charged each day at the daily rate, which is calculated from our posted annual rate.
We will include the daily rate in the final loan documents, but if you'd like to calculate it yourself, you can visit Fraction's rate conversion calculator.
First lien. If you have any existing mortgages, the proceeds of the Fraction mortgage would go towards paying those out.
Want to work together but still have some questions?
Reach out to your Fraction BDM to learn more.
Contact us