Fraction
Fraction is a fintech mortgage lender offering no-monthly-payment home equity loans to individual homeowners, distributed through mortgage brokers and direct digital channels in Canada and the US Pacific Northwest.
- Company typePrivate
- Founded2018
- HeadquartersVancouver, Canada
- Headcount11–50
- GTM typeB2C
- OfferingServices
What Fraction does
Fraction is co-founded and led by Hayden James (CEO), Josh Baker (CTO), and Rayan Rafay (CFO/COO), and has raised $20 million CAD ($16 million USD) in Series A equity led by QED Investors in October 2021, alongside additional capital from Impression Ventures, Global Founders Capital, Panache Ventures, and Primetime Partners. Cumulative capital across equity and credit facilities exceeds $250 million USD. The company was named Mortgage Lender of the Year by the Canadian Lenders Association in 2022 and reports an average client benefit of $350,000 in equity access since February 2021.
Fraction firmographics
Firmographics- Name
- Fraction
- Legal name
- Fraction Technologies Inc.
- Website
- https://fraction.com
- Company type
- Private
- Founded year
- 2018
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- Fraction is a fintech mortgage lender offering no-monthly-payment home equity loans to individual homeowners, distributed through mortgage brokers and direct digital channels in Canada and the US Pacific Northwest.
- Ownership category
- akta.pro rank
Fraction industry classification
Industry- Product category
- Residential Mortgage Lending
- NAICS
- Real Estate Credit (522292), Nondepository Credit Intermediation (5222)
- SIC
- Mortgage Bankers & Loan Correspondents (6162)
- akta.pro primary industry
- Cash-Out Refinance Origination (FSALAAAF)
- akta.pro secondary industry
- Reverse Mortgage Origination (HECM & Proprietary) (FSALAIAA)
Keywords
Where Fraction is headquartered
LocationHeadquarters
- HQ city
- Vancouver
- HQ country
- Canada
- HQ region
- North America
Offices3 records
Markets served
Fraction business model
Business model- GTM type
- B2C
- Offering type
- Services
- Cost components
- Personnel, Technology or R&D, Marketing or Sales, Operations, Infrastructure, Others
Revenue model
- Interest Income: Fraction earns interest on the loan amount over the term of the mortgage. Interest rates are variable and tied to home appreciation, calculated daily and compounding since there are no monthly payments. Rates range from minimum to maximum caps based on the product term.
- Origination Fees: Fraction charges an origination fee starting at 1% of the loan amount. For broker-originated deals, the fee is 1.5% with potential additional broker fees up to 1.5%. The fee is included in the loan amount.
- Refinancing Fees: When borrowers refinance at the end of their term, Fraction charges a 1% refinancing fee subject to credit check and sufficient equity requirements.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Usage-based | Pay-as-you-go | 1-Year Term: Starting at 7.99%, up to 60% max LTV, minimum FICO 550 |
| Usage-based | Pay-as-you-go | 3-Year Term: 7.19% at 49% max LTV, minimum FICO 660 |
| Usage-based | Pay-as-you-go | 4-Year Term: 7.29% at 45.5% max LTV, minimum FICO 660 |
| Usage-based | Pay-as-you-go | 5-Year Term: 7.39% at 42% max LTV, minimum FICO 660 |
| Usage-based | Pay-as-you-go | US Market: Minimum APR 9.37%, Maximum APR 16.02%, loan amounts $50,000-$1,500,000 |
Go-to-market motion3 records
Distribution channels4 records
Marketing channels7 records
Fraction product offering
Product offeringCore offering
Fraction is a technology-based private mortgage lender offering the Fraction Mortgage — a residential home-equity-access loan with no required monthly payments for terms of 1 to 5 years, no prepayment penalties, and variable interest rates tied to home-value appreciation. Homeowners can borrow up to 60% of their property's value (subject to LTV and FICO requirements that vary by term) and repay the loan in a lump sum at term end or through refinancing. The company originates loans through a digital-first platform that allows applications to be completed in approximately 5 minutes and funded in under 10 days, serving customers directly and through a large network of mortgage broker partners in Canada (BC, Ontario, Alberta) and the United States (Washington State).
Product overview
Fraction operates as a fintech mortgage lender offering a single core product — the Fraction Mortgage — a no-monthly-payment home equity access loan with terms ranging from 1 to 5 years. The product is available in Canada (Ontario, British Columbia, Alberta) and the United States (Washington state). Fraction's portfolio also includes specialized variants such as the Fraction 60 Max and Fraction 50 Max products differentiated by loan-to-value thresholds, a Third Party private mortgage routing service powered by a proprietary underwriting engine, a broker-facing Scenario Planner tool, and a Cost Calculator for homeowners and brokers. The company serves homeowners directly and through a network of mortgage brokers, with an iPhone app available for broker partners to manage deal submissions and track application status.
Differentiator
Problem solved
Functional benefit
Products and services
- Fraction Mortgage A no-monthly-payment residential home-equity-access mortgage that allows homeowners to unlock up to 60% of their home's equity without required monthly payments for 1-5 year terms, with a variable interest rate tied to the home's appreciation (Zillow Home Value Index in the US; CORRA Swaps in Canada), guaranteed minimum rate, and capped maximum rate. Repayment occurs as a lump sum at term end or through refinancing at a 1% fee. Available in British Columbia, Ontario, and Alberta in Canada and Washington State in the US.
- Fraction Mortgage Broker iPhone App A standalone iPhone mobile application for mortgage brokers to manage deal submissions, check deal status, upload documents, make changes to applications, and earn rewards points for prizes.
Quantifiable outcome
- Average benefit of $350,000 per client since February 2021
- +4 more outcomes
Companies that use Fraction
Customer profileNamed customers5 records
Segments4 records
Ideal customer profiles3 records
Fraction technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration3 records
Feature5 records
Fraction partnerships and signals
Strategic signalPartnerships
One partnership is on record.
- Mortgage BrokerscoreIndependent mortgage brokers who refer homeowners to Fraction and facilitate the application process. Brokers can submit deals through Filogix Expert, Newton Velocity, and Finmo platforms under the private lender category. Fraction provides dedicated BDM support and 24-hour turnaround on submitted files.
Scale indicators7 records
Recent moves7 records
Expansion highlights5 records
Fraction competitors and assessment
Company assessmentDirect peers
- Hometap: Hometap is a US-based home equity investment company that lets homeowners unlock equity without monthly payments, mirroring Fraction's core value proposition. Both compete for the same equity-rich, cash-constrained homeowner segment and distribute through partner networks.
- Point: Point offers home equity investment products in the US that allow homeowners to access equity without monthly payments or interest, directly competing with Fraction's no-monthly-payment mortgage in the same target customer segment.
- Unlock Technologies: Unlock provides home equity agreements in the US, enabling homeowners to access equity without monthly payments. It is a direct competitor to Fraction in the alternative home equity access category.
- EasyKnock: EasyKnock operates a sale-leaseback home equity access program in the US that lets homeowners tap equity without monthly mortgage payments. It competes with Fraction for equity-rich homeowners seeking flexibility over traditional loan structures.
- Aven: Aven offers a home equity credit product in the US with no monthly payments and variable terms, providing a direct product-line analog to Fraction's no-monthly-payment mortgage for US homeowners.
Emerging players
- Figure Technologies: Figure is a fintech lender offering HELOC, home equity loans, and blockchain-based lending products in the US. It overlaps with Fraction in home equity access and fintech mortgage origination, though its products include monthly-payment structures.
- Better.com: Better.com is a digital-first mortgage lender offering refinance and HELOC products in the US and Canada. It overlaps with Fraction's digital origination model and target customer (homeowners seeking equity), though with traditional monthly-payment structures.
Regional players
- HomeEquity Bank: HomeEquity Bank is the leading Canadian reverse mortgage provider (CHIP product), serving the same retirees and equity-rich seniors that Fraction targets in Canada. It is the dominant incumbent in the adjacent reverse mortgage category.
Broad incumbents
- Rocket Mortgage: Rocket Mortgage is the largest US mortgage lender with broad product offerings across purchase, refinance, and HELOC. It is a broad incumbent competing indirectly for any homeowner seeking equity access or alternative mortgage products.
Others
- Patch of Land: Patch of Land is a real estate crowdfunding and private lending platform. It is adjacent to Fraction as another non-bank participant in the private residential lending ecosystem serving non-traditional borrower profiles.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks7 records
Key highlights7 records
Customer concentration
Fraction social profiles
Digital presenceFraction compliance and trust
Trust signalCompliance3 records
Fraction financial estimates
Financial estimateRevenue estimate
Valuation estimate
Fraction leadership team
Management profileNumber of profiles
Profiles3 records
Fraction subsidiaries and ownership
Company hierarchySubsidiaries1 record
Fraction funding detail
Funding detailFunding overview
Funding rounds3 records
Investors5 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Fraction M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Fraction
What does Fraction do?
Fraction is a technology-based private mortgage lender offering the Fraction Mortgage — a residential home-equity-access loan with no required monthly payments for terms of 1 to 5 years, no prepayment penalties, and variable interest rates tied to home-value appreciation. Homeowners can borrow up to 60% of their property's value (subject to LTV and FICO requirements that vary by term) and repay the loan in a lump sum at term end or through refinancing. The company originates loans through a digital-first platform that allows applications to be completed in approximately 5 minutes and funded in under 10 days, serving customers directly and through a large network of mortgage broker partners in Canada (BC, Ontario, Alberta) and the United States (Washington State).
Is Fraction a public or private company?
Fraction is a private company. It is classified as venture growth investor backed and is currently operating.
When was Fraction founded?
Fraction was founded in 2018. It employs 11 to 50 people.
Where is Fraction based?
Fraction is headquartered in Vancouver, Canada, in the North America region.
How does Fraction make money?
Three revenue lines are on record. Interest Income is the primary driver. The others are origination Fees and refinancing Fees.
Who are Fraction's main competitors?
Direct peers on record are Hometap, Point, Unlock Technologies, EasyKnock and Aven. Emerging players are Figure Technologies and Better.com. HomeEquity Bank is listed as a regional player. Rocket Mortgage is listed as a broad incumbent. Patch of Land is listed as an others.
Does Fraction have an API?
No public API is recorded for Fraction.
What industry is Fraction in?
Fraction's product category is Residential Mortgage Lending. Its primary akta.pro industry code is FSALAAAF, Cash-Out Refinance Origination, with a secondary code of FSALAIAA, Reverse Mortgage Origination (HECM & Proprietary). Its NAICS code is 522292 and its SIC code is 6162.