Bitcoin-backed mortgage product development

New financial products are emerging that allow homebuyers to use Bitcoin as collateral for down payments or home purchase funds, enabling them to maintain cryptocurrency exposure while avoiding capital gains taxes.

In the United States, Better and Coinbase launched a dual-loan product consisting of a conventional Fannie Mae mortgage and a second loan secured by pledged Bitcoin. This method requires borrowers to maintain specific collateral ratios to avoid liquidation if the asset price drops or payments are missed. Pre-applications for these loans reportedly reached $360 million in volume.

Expanding into the Canadian market, Toronto-based APX Lending announced plans to launch similar Bitcoin-backed mortgage products by the first quarter of 2027. While specific terms for the mortgage products have not been disclosed, the company currently offers crypto-collateralized credit lines. APX Lending noted that the liquidation of Bitcoin collateral and property foreclosure would be treated as separate legal procedures.