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Fraction Review

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Reviews 23

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Patrick Sather
Patrick Sather
Jul. 22, 20214 min read

Fraction summary

Fraction is a home equity product that offers loans of up to 45% of your home’s appraisal value. It features 5- and 10-year terms with rates that vary depending on the appreciation in the value of your home. With a Fraction loan, you don’t need to make a monthly payment*, and there is no penalty for paying off your loan early. The application can be completed online, and approval usually takes just a few days or weeks.


  • No monthly payments
  • No early buyout penalty
  • Interest rate tied to changing value of your home


  • High minimum credit score and down payment required
  • Limited repayment terms
  • Only available in Ontario, British Columbia, and Washington

Fraction Fraction Visit Fraction


Founded in 2021, Canadian-based fintech startup Fraction is a direct lender that takes a novel approach to the mortgage and home equity loan business. Rather than charging monthly payments with interest for a conventional loan, Fraction enables you to borrow up to 45% of your current or new home’s appraisal value. The full value of the loan plus interest is not due until the end of the term. The interest rate you pay is dependent on your initial appraisal and the value of your home at the end of the term or when you pay off the loan in full.

In addition to the cost of the loan and any accrued interest due at the end of the term, Fraction charges a 2.5% origination fee. You can also pay a 1% renewal fee at the end of the term to begin a new 5- or 10-year term.

Suitable For?

While Fraction is most suitable for homeowners of retirement age who own a home in areas with high appreciation rates and lack suitable funds for their retirement, it is available to all homeowners above the age of 18 who own at least 55% of their home’s value. By granting you access to your home’s equity without making monthly payments, Fraction gives you access to capital to invest, renovate your home, or pay off your higher-interest debt without increasing your monthly expenditures. That said, it’s currently only available to borrowers in British Columbia, Ontario, and Washington.

Generally speaking, Fraction is more suitable for people accessing their current home’s equity because it requires borrowers to own at least 55% of their home’s value when applying for a loan to purchase a new home.

Types of Loans/Products

Fraction is a direct lender that offers 5- and 10-year loans with interest rates based upon the appreciation in your home’s value. Its loans can be used to access the equity in your existing home or to buy a new home.

Rates: starting at 5.83% for 5-year and 7.08% for 10-year

Minimum credit score: 640

Repayment terms: 5- and 10-year

Minimum home equity ownership of 55%

The Application Process

At Fraction, the application process includes 4 simple steps:

  1. Apply online or over the phone
  2. Get approved and sign your agreement
  3. Receive your funds
  4. Renew or pay back your loan at the end of the term

During the initial application, a mortgage advisor will estimate how much of your home’s value you can unlock. Afterward, you’ll need to complete a credit check and get an official appraisal of your home before you get the final terms of your loan.

The documentation you may need to submit includes a photo ID, bank statements, and financial reports if you currently have a mortgage or plan to apply for a new mortgage.

Whereas an application through most lenders takes between 2-4 weeks to complete, Fraction can complete the process in just a few days depending on how quickly you’re able to schedule your initial home appraisal.

Repayment Terms

Fraction offers 5- and 10-year repayment terms. Your rate will differ based on the repayment term. The lump sum that you receive from Faction can be accessed throughout your pre-determined draw period. Once you enter your repayment period, you can no longer withdraw funds, but you will only pay interest on the funds actually withdrawn. Your initial rate is set at the start of the term and finalized when you pay off your loan or at the end of the term. Alternatively, you can choose to pay a 1% renewal fee to extend your repayment horizon beyond the initial 5- or 10-year term.

Help & Support

Customer support is available via phone, email, or chat. Chat and phone support are available from 9am-5pm PT, Monday-Friday. You can also schedule a phone call with a mortgage advisor by reaching out to a customer support agent. If you need assistance outside of business hours, you can check out Fraction’s FAQs page.

How Fraction Compares

Here’s how Fraction compares to some of its competitors.

Minimum Credit Score
Minimum Down Payment
DTI Ratio
30-year Fixed-rate APR
N/A (starting at 7.08% for a 10-year term)
From 2.85% (varies by lender)
Best For
Homeowners over the age of 18 in high appreciation areas who need additional funds
Buyers with strong credit
Interest rate offers


Fraction is a home equity product that offers direct loans up to 45% of your current or new home’s appraisal value. It offers 5- and 10-year loans with interest rates tied to the appreciation in the value of your home. Applicants must undergo a credit check and get a full appraisal of their home prior to approval. You can complete your application online and receive funding within a matter of days.


Which areas does Fraction lend in?

Currently, Fraction lends in British Columbia and Ontario in Canada and Washington State in the United States.

What are the costs associated with Fraction?

Fraction uses 3rd-party appraisers to assess your home’s value, and that cost is payable by the applicant. It also charges a 2.5% origination fee and a 1% renewal fee if you decide to renew at the end of your initial term.

Can I use Fraction to finance loans on multiple homes?

Yes. Fraction can lend up to $2,000,000 to a single person with a maximum of $1,500,000 per property.

Is Fraction a 1st lien or 2nd lien loan?

Fraction must be the 1st lien or charge on your property at the time of origination for your loan and until your term ends.

Physical Address


1050 Homer St, Vancouver, BC V6B 2W9


240 Richmond St W, Toronto, ON M5V 1V6

Berkeley, CA:

2120 University Ave, Berkeley, CA 94704

Fraction Fraction Visit Fraction


This review was created based upon 3rd-party reviews and information available on the company’s website.

Fraction Lending US, Inc.

NMLS #: 2084341

Equal Opportunity Lender

*Fraction HELOC annual percentage rates range from 5.83% to 11.85% for a 5-year term and 7.08% to 15.00% for a 10-year term. You will be charged an origination fee of up to 2.5% of the total loan amount. You will also be responsible for paying recording fees, which vary by county, as well as inspection and appraisal fees, which vary by property.

Patrick Sather
Written byPatrick Sather

Patrick Sather is an award-winning personal finance writer and licensed broker who has worked for some of the largest financial firms in the United States, including TD Ameritrade and Pacific Life. A graduate of the University of Nebraska in both Economics and International Trade and English, his articles on life's most common financial decisions and quandaries are straightforward, practical, and always easy to understand.

ExcellentReviews 23
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Trustpilot reviews

See what some costumers are saying about Fraction
ExcellentReviews 23
  • author
    James Kee
    Apr 02, 2022
    Fraction was the ideal mortgage product for us...

    Jacob and Ish were most helpful in explaining the Fraction 'deal', as our experience had been only with conventional mortgages. We saw that 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. For us, it beat out all the re-fi's and the reverse mortgage products that are prevalent in the RE market these days. We feel very lucky to have discovered Fraction, and that Jacob and Ish were willing and able to answer all of our many, many questions that arose originally, and also during the entire process, up to the closing. We're very happy to be living our first month now without having made a big mortgage payment -- and with a large amount of cash now in the bank, as a result of the Fraction deal that we made! It's a brilliant idea that's sure to catch on big in the U.S. mortgage market.


  • author
    Mar 26, 2022
    Our experience with Fraction has been…

    Our experience with Fraction has been great! At the very beginning, they answered all our questions and were patient with us throughout the whole process (which is super easy in of itself), especially when we encountered a hiccup on our side, Fraction continued to be professional and patient until everything worked out. Overall,


  • author
    Mar 20, 2022
    Excellent experience

    Really smooth experience. Everything explained in simple and easy-to-follow detail. Client on-boarding very well handled. Thoughtful follow-up gift too! Really recommend working with Fraction if the financing model works for your property/life plans.


  • author
    Monica Beer
    Feb 28, 2022
    Re financing with Fraction was a great…

    Refinancing with Fraction was a great experience. I am not a tech savvy person and they handled all the details . Always there with prompt answers to any questions or concerns . Looking out for my best interest was they’re top priority. I highly recommend them for all your financial needs.


  • author
    Manny A
    Feb 21, 2022
    Very happy with experience

    What can I say, very helpful staff and made sure you understood the contract. They outlined the process and timelines so everything went smoothly.


  • author
    Chris Alexander
    Feb 17, 2022
    Fraction takes the time to work…

    Fraction takes the time to work together with their broker partners to make the customer experience a special one!


  • author
    Jeff Coates
    Feb 14, 2022
    The people at Fraction were most…

    The people at Fraction were most accommodating and extremely helpful. The creativity of their unique approach to the reverse mortgage is exceeded only by their accommodating and efficient customer service. It was from beginning to end a very satisfactory and fulfilling experience by any measure, including financial and personal. Thank you Benjamin, Bill and all.


  • author
    Daniel Graetzer
    Feb 09, 2022
    All went great during transaction

    All went great during transaction - Thank you


  • author
    Feb 04, 2022
    Our review from J&E MacDonald

    Our review from J&E MacDonald Our experience with Fraction was very smooth, Explained very well and accommodating. Polite and helpful staff. I would certainly recommend Fraction which we already have.


  • author
    Patricia LaBelle
    Feb 04, 2022
    Win! Win! I have been dealing with Fraction for…

    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!


  • author
    Ron Miller
    Dec 22, 2021
    New thinking on old problem: Equity access

    when I found Fraction on line I was very intrigued with the approach they had created to access the Equity in my home. The computation of interest rates tied to the rise in the equity of my home sold me , relatively low interest as a base line tied to equity performance of my homes market value. Always lots of equity to be made in the future, and the access to equity cash allowed for not only debt reduction, but investment capital as well! Great people always ready to explain the product and answer questions. Very comfortable experience with professional and honest conduct throughout.


  • author
    Julie Brenneman
    Nov 15, 2021
    First File with Fraction!

    The underwriter was amazing on this! He helped us guide the client through the entire process and answered any questions


  • author
    Georgia AL Fullerton
    Nov 08, 2021
    Pleasantly pleased

    I was pleased with the fluid and professional way Fraction showed me. I especially like the interactive quiz online that made sure you learned something about the process. I loved my care package of incense, tea coffee and chocolate...nice touch!


  • author
    Nov 06, 2021
    Great Start…poor execution

    1. Saw ad on Instagram 2. Larry contacted me and was awesome 3. Andrew (broker) was great: a) home inspection was quick and easy b) although not thrilled with the appraiser’s valuation, he was quick and easy with the process. 4. Everything delayed on closing day because my Insurance company was unable to input the lender details as required by Fraction. 5. After hours of work on my behalf and many calls to TD Insurance I was able to get a letter that was acceptable to Fraction. 6. It took two weeks from the initial estimated closing date to finally get funding today. So way too slow!!! Without Larry & Andrew’s exceptional performance I would have rated Fraction only one Star.


  • author
    Jeff Streifel
    Nov 03, 2021
    I was thrilled to choose fraction

    I was thrilled to choose fraction for my mortgage it really solved a lot of life for me. The process was smooth and even though I had a mortgage broker, the folks at fraction were always there to talk to me and make sure I understood where we were at at all parts through the transaction.


  • author
    Lawrence Evenchick
    Oct 31, 2021
    Excellent Mortgage Options from Fraction

    Fraction provided exactly the product I needed for my plans and lifestyle. My broker explained all the details really well and was always a call away for advice and to update information. The process was simple, and communication excellent.


  • author
    Cathy Laskey
    Oct 22, 2021
    I had a very positive experience and…

    I had a very positive experience and would highly recommend using fraction.


  • author
    Christine Morley
    Oct 21, 2021
    Fraction was the lender my mortgage…

    Fraction was the lender my mortgage specialist was most impressed with. They work remotely and are definitely easier to deal with than a bank. They simply don't have the restrictions that banks have. I highly recommend them to anyone looking to get equity out of their home.


  • author
    Justin McIntyre
    Sep 09, 2021
    Fraction was fantastic to work with

    Fraction was fantastic to work with. The first deal had some issues but they showed support towards their broker partners by switching up the weak link to make the next 4 smooth. They are very responsive and willing to work through things. Clients were all happy with the outcome as well. Keep it going!


  • author
    Carlo Simone
    Aug 31, 2021
    I'm so grateful for fraction.

    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.


  • author
    Aug 19, 2021
    Fraction gets mortgages RIGHT!!!

    This was truly one of the best experiences I have had when dealing with mortgages. I was very skeptical to begin with. However, working with the Fraction team has been incredible. They were quick, efficient and very thorough. The mortgage itself is innovative and takes what I feel is a dying, restrictive product and revives it to meet the needs of consumers today! We have a real sense of excitement and peace of mind that this will help us create the life we desire and the opportunity to grow with limitless possibilities. Thank you FRACTION for giving us a future to look forward to.


  • author
    Aug 09, 2021
    The team was easy to work with

    The team was easy to work with, they helped me through every step (as this was my first private deal) and went over and above to try to get this deal completed. While the deal did not fund, they were still very personable and even checked up on me to make sure I wasn't out of pocket any money. I will be using Fraction again, without a doubt.


  • author
    Jeff Puhl
    May 06, 2021
    Great process and very friendly people.

    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.


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