Bitcoin holders can now use crypto as collateral for mortgages
Is this a good idea and is it legit? Anything not written in the fine print? Would you consider it?
Bitcoin Backed Home Loan
BluebirdV on 17/07/2025 - 20:51
Last edited 17/07/2025 - 22:40 by 1 other user
Last edited 17/07/2025 - 22:40 by 1 other user
Comments
By that logic why hold any cash if it’s an inflationary asset.
If btc was only ever going up and go the right, why would you use it to buy a house anyway. That's not the crypto way.
What? The whole point of this is to not sell your BTC.
I think products like this are meant to work in places where spending the crypto (to pay the interest) doesn’t trigger capital gains tax.. I’m pretty sure it triggers it in Australia.
This seems like a 4 year interest only loan (possibly to put down deposit) with the home loan head line to grab attention
How can BTC be akin to Australian dollars? If I trade USD, profits is liable to CGT unless qualifying for a limited balance exemption. Does anyone have the judge's actual reasoning?
The World Bank is also moving towards using Gold as collateral in a similar way ;)
Gearing up for the rich to become more rich by leveraging more asset types :/
Cannot buy a real fact with an abstract fiction!
Watch as this unwinds every single step in every single process to create more housing. What a fkn joke.
It's a terrible idea - the rates are awful. Good if you're a criminal I guess and wanting to launder some money though?
You can already launder money into Australian property since conveyancers do not need to verify the source of funds. This will stop soon.
Interest rates will start at 9.50 per cent per annum with a 40 per cent loan-to-value ratio (LVR) and comparison rates of 11.93 per cent per annum with an 80 per cent LVR.
The fixed rate is 11.50 per cent per annum for 12 months with 50 per cent LVR, while the comparison fixed rate is 12.17 per cent with 80 per cent LVR.
I've seen loan sharks with lower mortgage rates.
The high interest rate and lvr percentage should tell you all you need to know about using a volatile asset as security against a loan.
If btc was only ever going up and go the right, why would you use it to buy a house anyway. That's not the crypto way.