Australian fintech startup Block Earner has launched what it calls the first bitcoin-backed home loan, allowing Australians to use their bitcoin ( BTC) as collateral for a home deposit without selling it.
Aussies Can Now Use BTC as Collateral for Home Deposits
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The firm offers up to 50% of a property’s value as a deposit loan, secured by the borrower’s bitcoin, which is held in custody by Fireblocks. Repayments can be made in cash or crypto, with no early exit penalties. To manage bitcoin’s inherent volatility, the loan is capped at a 60% loan-to-value (LVR) ratio. If bitcoin‘s price drops sharply, borrowers receive a 30-day notice to adjust the LVR by fiat repayment, additional collateral, or a Bitcoin top-up, with only a partial sale of BTC occurring if the LVR isn’t corrected. Block Earner emphasizes that the home itself is never at risk due to BTC price fluctuations.
