What happened
Fintech platform Block Earner partnered with Century 21 Home Loans to allow Australian property buyers to pledge bitcoin as security for a deposit loan while obtaining a standard home loan from a traditional lender. The product caps initial loan-to-value ratios at 50% and provides real-time monitoring, requiring borrowers to add collateral or cash if digital asset prices drop.
Why it matters here
The structure allows cryptocurrency investors to access residential property equity without selling bitcoin and triggering capital gains tax liabilities or paying lender's mortgage insurance. Backed by ASIC credit licence approval, the offering provides a regulated bridge between digital assets and mainstream property finance, though borrowers remain exposed to crypto price volatility margin calls.
What to watch
Initial borrower adoption across Block Earner's waitlist and how loan-to-value ratio buffer notifications manage potential drops in cryptocurrency valuations over coming months.
Source
brokerdaily.au