Key Takeaways
- Australian firm Block Earner has launched a Bitcoin-backed mortgage scheme.
- The BTC mortgage scheme in Australia comes just weeks after the US Housing Commission approved Bitcoin for mortgages.
- BTC use for mortgages has positives and negatives, but it highlights the growing mainstream crypto adoption.
Australia follows the United States’ lead in allowing citizens to use Bitcoin as a mortgage amid a growing housing crisis.
Enabling Bitcoin owners to utilize their BTC as collateral for home loans without having to liquidate their digital assets is the financial innovation that could help alleviate Australia’s mounting housing affordability crisis.
Block Earner Launches First Bitcoin Mortgage
Australia has introduced its first Bitcoin-backed mortgage product, launched by Sydney-based fintech company Block Earner.
The scheme allows borrowers to use Bitcoin as security for a cash loan covering up to 50% of the property’s value. This loan is typically used to fund the deposit on a home purchase.
The remaining portion of the property’s value is financed through a standard mortgage from a traditional lender
Fireblocks, a third-party custody platform, will hold the Bitcoin collateral. The interest rate for the Bitcoin-backed deposit loan starts at 9.5% annually for a 40% loan-to-value ratio (LVR), while comparative rates go up to 11.9% annually for an 80% LVR.
A Flexible Repayment Option
The loan offers flexible repayment options and is interest-only for a maximum of four years. At the end of the loan term, borrowers can repay the principal with cash, cryptocurrency, or refinance.
The launch of Bitcoin mortgages was made possible by a Federal Court ruling in April 2025 that found Block Earner’s cryptocurrency loan products did not meet the Corporations Act’s definition of “financial products.”
This exempted the company from needing an Australian Financial Services Licence (AFSL), clearing legal hurdles for crypto-backed lending.
Bitcoin Investments to Mortgages: The Tale of Going Mainstream
Bitcoin has come a long way, not just from its inception in 2010. People were sceptical of it as late as the 2022 bear market, and sentiments will turn bearish again in the next six months as the next bear market arrives.
However, it won’t change the fact that BTC has gone truly mainstream. From hundreds of public companies and dozens of countries hoarding BTC as part of their treasury, to national housing commissions approving BTC use for mortgages.
While using BTC as mortgages seems lucrative, allowing BTC holders to leverage their crypto assets to get a loan, price volatility during bear markets could brew trouble, as prices often drop fast and significantly.
The U.S. has opened the gates for further crypto adoption with the latest approval of three crypto bills. These bills could set the benchmark for the rest of the world.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
