How Fraction works and what it costs
See how much you could access today for Fraction's no-monthly payments mortgage with no prepayment penalties.
Apply
In just 5 minutes, complete an application for a no monthly payments Fraction Mortgage to learn how much equity you can access. It’s completely free and won’t affect your credit score.
When applying, you will be required to share information that will give us a better picture of your financial and homeowner history.
Don't worry if you don't have everything on hand; our team will work with you to figure out what you need.
The maximum amount of equity you can unlock from your home.
The maximum amount of equity you can unlock from your home.
The maximum amount of equity you can unlock from your home.
Fraction offers a fixed interest rate. It won't change during your {{term_length_word}} year term, but note that because there are no prepayment penalties, you can pay it out any time you'd like.
Fraction offers a variable interest rate which varies based on your term and house appreciation.
Fraction offers a variable interest rate which varies based on your term and house appreciation.
Approve
Following a third-party appraisal of your home, our team will confirm if you meet our approval requirements. Based on your appraised home value, Fraction will determine how much cash you qualify for. Fraction is able to fund in less than 10 days.
Costs in this stage include:
Home appraisal
Appraisal costs are out-of-pocket and will generally range between $400 to $600 based on the property size and type.
Independent legal advice
Costs for independent legal advice vary based on your lawyer. Borrowers can expect fees ranging anywhere from $900 to $1,500.
Conveyance & title insurance
Conveyancing will generally come to around $2,000 and typically includes title insurance.
Receive funds
Once all documents are signed and you complete our knowledge review exercise, you’ll have a percentage of your hard-earned equity at your disposal—with no monthly payments for up to {{term_length_word}} years.
You choose what you do with the funds! Invest in a home upgrade or repairs, start a new business or consolidate your existing debts — the sky’s the limit!
This amount you receive will include:
Origination fee
Our origination fee is 3%.
Prepayment fees
Want to exit your loan earlier? No problem. Fraction does not charge any prepayment fees.
Check-in
At the end of term, we’ll check-in to reassess our agreement.
You can choose to pay Fraction back or apply to refinance. If you choose to exit, you must repay the full lump sum you received plus interest.
Depending on your path, you will be required to pay either of the following:
Pay back Fraction
This is the path most people take. You can either work with a different mortgage lender, downsize or sell, or use other investments to pay out Fraction.
The amount owed includes the remaining balance on the loan and the interest accrued.
Refinance your loan
In some situations where you didn't take out a large percentage of your home equity with Fraction to begin with, you may be eligible to refinance with Fraction for another {{term_length}} year term.
Refinancing is contingent on several conditions including credit score and appraisal and is subject to a 1% refinancing fee.
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
Cost calculator
We’re making a lot of people happy
Taking out a Fraction mortgage changed our lives. It has helped us immensely. The staff and the process was amazing. Really appreciated everything about it.
Fraction have been a pleasure to deal with! Everything explained and ended up exactly as such! Very pleased to deal with them and its been one of the best moves of my life, considering my situation. Excellent service and I'm very pleased.
We are very pleased with Fraction. They were easy to deal with and very knowledgeable in answering our questions. We were always able to talk to a "real" person, not an answering machine. There has been no hassle from the company since we started. They let us know they are available if we need them.
Very professional and easy to deal with. Walked you through the whole process with ease. Any questions asked answered with patience
Professional, very efficient group of individuals assisted us in every way throughout the process. And we just paid it back so all wonderful on our part. But to be honest it was necessary and we pondered it for awhile although a good decision though and we still had funds available and spent it very wisely.
Relatively simple process, with good people to explain and help along the way. The closing and handling by lawyers, and funding dates, could use some fine-tuning, but all in all, a clear and simple process. Thanks Fraction.
They helped me get through the process very easily and explained every step of the way
The team at Fraction were very helpful, answered all my questions and explained fully the differences between a fractional mortgage and a reverse mortgage. For my situation it was a very easy decision and would highly recommend any senior who is house rich but cash poor to look into what they have to offer. A great way to access your homes equity without moving!
Found Fraction to be honest, upfront, fast, and available to answer questions. We would highly recommend them.
They helped us stay in our home. Explained everything in detail.
Friendly staff to deal with, lots of work to get started and quickly received the money. Once you receive your money it's quite simple. It's been great dealing with the team at Fraction.
Obtaining our mortgage was straightforward, seamless, and bought us much-needed time. We highly recommend Fraction.
We were very thankful that our mortgage broker introduced us to Fraction as otherwise we would not have been able to re-enter home ownership. Although this is a temporary solution as it will cost quite a bit more in the end, it was the only way for us to get a mortgage and we are happy that it was an option at the time.
Excellent service. Everything was executed perfectly great communication skills with fraction in my mortgage broker and lawyers it certainly has given me great comfort to have switched to fraction. The product that fraction offered me was the perfect solution I am so happy that I made this choice.
I find this product (being able to access equity and not having to make monthly payments) as ideal for my financial situation at the present time. The process was extremely seamless to follow, and the human interaction was cordial and efficient.
We found Fraction through our broker. What an amazing product! We are mortgage free and purchased a 2nd property but weren't prepared to start making huge mortgage payments again. This worked perfectly for us.
My family and I were able to tap into the value in our home, which was not available to us through standard lenders/banks. So far our expected interest rate is holding as the central bank tackles inflation and raises rates. This innovative product allowed us to get into a home we own and bought us time to get our financial circumstance to where we could access traditional lending. Just what we needed when we needed it
I still can’t believe this incredible deal I got which made it possible to purchase my retirement dream home. I have been telling everyone I know about Fraction and recommending you. Thank you so much Daniel and all the professional at Fraction! I look forward to doing more business with you in the future.
Fraction has been the light at the end of the tunnel for me, at least for now and i look forward to a longer relationship
“...Fraction offered us an opportunity that was best for us at this point in our 73-year-old lives, and with the house that we're living in. We're hoping for continued appreciation of our home over the next 5 years, so that this deal will turn out to be a 'win-win' for us, as well as for Fraction. They managed to come up with a brilliant mortgage product, that segues perfectly into what the current mortgage market does NOT offer.”
From start to finish, my experience was no less than stellar. They explained the process, the paperwork, what was going to happen from point to point. Saki was a great guy to deal with and was very understanding of my specific issues and how to overcome them. Highly recommend dealing with Fraction if you are looking for this type of mortgage.
I'm so grateful for fraction, it came right when I needed it. I didn't have to wait till I was 55 years old, I am currently 50. They were helpful and quick, they answered all my questions quickly and in detail. I will definitely do business with them again in the future. Fraction has given me the chance to live my dream life! Thank you Fraction.
I have been dealing with Fraction for about 6 months now and have 5 properties with them. They have helped my husband and I realize our dreams of owning 5 properties. Using the equity in our homes we are able to renovate the properties to our liking. This benefits both Fraction and ourselves by increasing the value of the homes. It's a win, I win!
Frequently asked questions
Go through our most asked questions below, and visit our FAQs page for more detailed questions.
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Following a third-party appraisal of your home and a check of all your information, you may or may not be approved for a Fraction Mortgage.
Based on your application and the appraised value of your home, Fraction will determine how much cash you qualify for. Upon a deeper review, we will provide you with documentation outlining your funding amount and corresponding terms and conditions. Once you sign the final documents, we send you your money.
Learn more here, in our Fraction Basics modules.
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 CORRA 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.
Anyone who owns a home and has enough equity built up can work with us. We have no age restrictions.
Since there are so many factors that contribute to partnering with Fraction, each property is evaluated independently. Working with Fraction starts with getting a free estimate. With our estimate tool you can see how much tax-free cash you qualify for, with no impact to your credit score.
From there, after a hard pull credit check (which may impact your credit score) and official appraisal of your home, we’ll send you an agreement for your review. Here are some of the things we screen for before we lend:
- The single-family dwelling is located in a province or state in which we’re currently operational
- A 660 credit score
- A minimum of {{min_equity}} equity in your home
You decide. Fraction will receive payment when you sell the home or choose to pay back Fraction. At the end of the 5 years, if you qualify, you can refinance with Fraction, otherwise you will have to refinance with another mortgage lender in order to pay back Fraction.
Fraction makes money from our interest rate and our origination fees. Fraction offers this financing because millions of homeowners want to be able to take cash out of their home without linking it to monthly cash outflows or having to sell.
It gives people financial freedom and another way to live their life to the fullest. Fraction may not work for everyone. For those that aren’t best served by other options in the market, the ability to take money out and diversify it, buy an investment property or second home, help a child with a down payment, or invest in a new business venture are the main reasons why we exist.
It depends. If you have an existing mortgage, you must have enough built up equity in your home to qualify for Fraction. We do require that you pay off your existing mortgage to work with us (you can use Fraction to pay off your existing mortgage).
Wondering if you qualify? Get started with an estimate here →
