In this week’s founder interview, we interviewed Hayden James from Fraction.
Without further ado…
My name is Hayden James, and I am the CEO and Co-Founder of Fraction.
I am a husband and father and above all, a serial entrepreneur looking to make the homeownership experience fairer.
What problem does your product/service solve?
Fraction makes finance fair. The Fraction Mortgage is an innovative, no monthly payment mortgage with no hidden fees. Homeowners can use the funds for anything — paying off high-interest credit card debt, paying off a large, unexpected expense, starting a business, or even buying a second home.
As things change globally, our product is here to help homeowners across North America save. Fraction can help homeowners reduce how much they spend monthly paying down their debt. We help people save and reduce the burden of increasing interest rates and mortgage payments. We have, on average, helped homeowners reduce their debt to income ratio (the amount you spend monthly paying back debt) by up to 50% on average simply by removing monthly payments. We also help raise the credit scores of our borrowers by 30 points on average.
These numbers are life-changing for many. It can mean a life with fewer stresses, worries, and an assurance of security for themselves and their loved ones. By tapping into their hard-earned home equity with an approachable variable-rate mortgage like ours, homeowners can weather whatever economic shifts come their way this year and into the future.
What are you most excited about right now?
Despite shifts in the economy, we are excited by many things. The opportunity to support homeowners through a transition period and a chance to impact how people view their homeownership are at the top of our list.
Offerings like ours allow homeowners to take more ownership of their homes and financial futures. Along with a shift in how people view homes in the grand scheme of their financial worth and assets, a more significant, more intangible change is taking place. Innovations in fairness and transparency are taking place in a traditionally stodgy space. This mindset shift will set the tone for the types of emerging financial, proptech, and mortgage tech companies.
What’s next for you?
Digitalizing finance and using alternative data to provide access to credit is a very exciting time in history. It opens up many more opportunities for people to manage and create wealth than ever before.
We dream of further empowering homeowners across North America with innovative, AI-driven mortgage tools, giving them everything they need to make the most of their most significant asset.
We’re eager to help fix the intergenerational cycle of real estate by increasing access for homeowners and investors in a mutually beneficial way. It will hopefully lead to a more equal society. Fundamentally using technology to scale what we are doing helps us accelerate this impact and provide the best user experience possible.
What’s a cause you’re passionate about and why?
Having gone vegan for a short time now, I have come to realize how much of an effect eating so much meat had on my energy, feeling of well-being, and our climate. What surprised me most was just how tasty and wide-ranging vegan food can be. I’m excited to continue exploring and learning more about this lifestyle.