Fraction is a technology-based lending platform that offers a payments-free mortgage solution, allowing homeowners to unlock their home equity without monthly payments for up to five years. This approach addresses the challenge of affordability in residential real estate by providing flexible financing options with no prepayment penalties, enabling users to invest or manage their finances more effectively.
Funding
$242.5M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Many homeowners struggle with the burden of monthly mortgage payments, limiting their financial flexibility and ability to pursue other investment opportunities. Traditional mortgages lack the flexibility to accommodate fluctuating income or unexpected financial needs, potentially leading to financial strain.
Solution
Fraction provides an alternative mortgage solution that allows homeowners to unlock their home equity without requiring monthly payments for up to five years. This payments-free mortgage offers homeowners increased financial flexibility, enabling them to invest in other opportunities, manage debt, or fund significant life events. The mortgage has a fixed interest rate for the term and no prepayment penalties, providing a predictable and adaptable financing option. Fraction's platform streamlines the application process, offering an estimate in minutes without impacting credit scores.
Target Audience
Fraction's primary audience includes homeowners in British Columbia, Ontario, and Alberta seeking to access their home equity without the burden of monthly mortgage payments, including those looking to manage debt, invest, or fund other financial goals.
Features
- Payments-free mortgage structure for up to five years, freeing up monthly cash flow.
- No prepayment penalties, providing flexibility to refinance or pay off the mortgage early.
- Fixed interest rate for the duration of the mortgage term, ensuring predictable costs.
- Online application process for quick and easy access to equity estimates.
- Suitable for primary residences, allowing homeowners to leverage existing assets.