An Australian fintech company has launched the country’s first home-loan scheme that allows borrowers to use Bitcoin as collateral — a development that may reshape how property ownership is accessed by crypto investors.

The Sydney-based firm, Block Earner, unveiled its “Bitcoin-backed mortgage” offering this year following a legal win that cleared the way for crypto assets to be treated as eligible security for home-loan deposits.

Under the new arrangement, buyers can pledge Bitcoin rather than cash savings to fund up to half the value of a property’s deposit.

The digital assets are held in institutional-grade custody, while a traditional mortgage provider finances the remainder.

This setup enables prospective homeowners to retain exposure to Bitcoin’s future upside while tapping into real estate — bypassing the need to liquidate crypto holdings and potentially incur capital-gains tax.

The product arrives amid persistent housing affordability challenges: median house prices in major Australian cities remain far out of reach for many working households.

Crypto-backed lending gives a growing base of digital-asset holders an alternate route into property ownership — one which recognises non-traditional wealth as credit-worthy.

Early demand appears significant.

Block Earner says it has already received applications totalling more than A$110 million, with a national rollout planned for late 2025 as formal lender partnerships are finalised.

Loan terms reportedly include interest-only periods up to four years, and flexibility to repay either in fiat or crypto.

However, borrowers are exposed to volatility: if Bitcoin’s value drops, they may face margin calls or risk collateral loss under loan-to-value constraints.

Industry observers note this innovation signals a deeper shift: digital currencies are increasingly merging with conventional finance and real estate markets.

As crypto holdings grow among younger Australians, products like these may become an important bridge between new-asset wealth and traditional homeownership.

Whether this will significantly reshape Australia’s property market remains uncertain.

But for now, crypto investors have gained a novel option — using their digital currency not just for speculation, but as a key to unlocking bricks-and-mortar property.