Bitcoin-backed mortgages are coming to Canada, but borrowers are still unaware of the cost - CoinDesk
Canadian lender APX Lending plans to offer bitcoin-backed mortgages in early 2027, allowing homebuyers to use their cryptocurrency as collateral.
The Toronto-based company opened a waitlist on Wednesday, expecting to begin offering mortgages in the first quarter of 2027. APX, which already provides crypto-backed loans, claims it will be Canada's first regulated bitcoin-backed mortgage provider.
Last month, APX Lending announced the rollout of five-year bitcoin and ethereum-backed lines of credit. The new move would bring cryptocurrency lending into Canada's residential mortgage market, where outstanding debt reached $1.75 trillion in June according to the Canada Mortgage and Housing Corporation.
Market Potential
APX founder and CEO Andrei Poliakov estimates the Canadian market for bitcoin-backed real estate financing at $44 million to $73 million. He said 15.8% of the company's existing crypto-backed loan volume is already tied to real estate.
Canadians shouldn't have to choose between owning Bitcoin and owning a home.
Terms and Risks
For a home costing about $475,000, a buyer could borrow $95,000 for a 20% down payment by pledging $190,000 in bitcoin. Buyers seeking to finance the entire purchase without a cash down payment would need to pledge about $475,000 in bitcoin, with the property also serving as collateral.
APX has not disclosed its mortgage interest rates, repayment periods, loan-to-value limits or the conditions under which borrowers could face margin calls or collateral liquidation. Its existing crypto-backed loans carry annual rates of 9.99% to 11.49% with borrowing estimates based on a 60% loan-to-value ratio.
Bitcoin's volatility presents another risk. A sharp price decline could leave borrowers needing to provide more collateral or facing the sale of pledged bitcoin, depending on the mortgage terms. A 40% drop in bitcoin's price would push a standalone loan starting at 50% loan-to-value to about 83%, according to Poliakov.
Collateral Protection
APX said it uses BitGo to custody customers' cryptocurrency and does not lend out their collateral. Its existing lending system includes automated liquidation controls, which partially sell bitcoin when loan-to-value reaches 90%, reducing it to 85%.
Poliakov said the mortgage program would have separate collateral and default provisions, including any notice periods and opportunities to remedy a shortfall. For now, prospective borrowers can join the waitlist, though the company has not announced when it will publish the mortgage terms.
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