Australia Introduces First Bitcoin-Backed Mortgages for Property Buyers

Potential home-buyers will be able to use their Bitcoin holdings to secure a loan up to 50% of the property’s value, combined with a traditional mortgage to finance the remainder of the purchase. The maximum available loan will be A$5 million (US$3.3 million).

If approved for the loan, a custodian will hold the Bitcoin  and a cash loan will then be issued against the value of the crypto for use in the property purchase. If the price of Bitcoin drops, borrowers will be given a 30-day notice to either add more Bitcoin to their account or top it up using fiat currency.

Sign of growing maturity

This development reflects how quickly cryptocurrencies are moving to the mainstream, and it has not happened in a vacuum. Last month, the US Federal Housing Finance Agency ordered Fannie Mae and Freddie Mac, the major mortgage lenders in the US, to prepare proposals for the use of individual’s cryptocurrency holdings as collateral for mortgage issuance.

Good for owners; good for the market

“Crypto holders shouldn’t have to choose between holding Bitcoin and buying a home,” said Charlie Karaboga, CEO of Block Earner in a statement. “We’re giving them a smarter option, a way to put their crypto to work without giving it up. This product isn’t just innovative, it’s inevitable.”

The Australian Bureau of Statistics reported a drop in both mortgage commitments and the value of each loan in the first quarter of 2025, suggesting a slow housing market. And according to the Australian Independent Reserve Cryptocurrency Index, Bitcoin ownership has increased by 28% in 2025 from 2024, with just over 30% of Australians investing. 

Simplifying the use of Bitcoin for home purchases could be a potential win-win, but it may also pose serious liquidity risks for both loan issuers and homeowners because of the inherently volatile nature of the crypto prices.