CoinDesk
Canadian lender APX Lending plans to launch Bitcoin-backed mortgages in the first quarter of 2027, allowing homebuyers to pledge BTC rather than sell it to finance a property. Borrowers could use Bitcoin for a down payment or the full purchase price, but rates and loan terms have not been announced. APX has opened a waitlist and says it expects to be Canada's first regulated provider of the product.
For a home priced at about $475,000, APX CEO Andrei Poliakov said a buyer could borrow $95,000 for a 20% down payment by pledging $190,000 in Bitcoin. Financing the full purchase without a cash down payment would require about $475,000 in BTC, with the property also serving as collateral.
Why it matters
The proposal brings crypto-backed borrowing into Canada's residential mortgage market, where outstanding debt reached $1.75 trillion in June, according to the Canada Mortgage and Housing Corporation. APX estimates the Canadian market for Bitcoin-backed real estate financing at $44 million to $73 million. The company says 15.8% of its existing crypto-backed loan volume is already tied to real estate.
Comparable products have gained traction in the United States: Miami-based Milo said it had originated more than $100 million in crypto-backed mortgages, including a $12 million loan. APX already offers crypto-backed loans and last month announced five-year Bitcoin- and Ethereum-backed lines of credit.
Market impact
Bitcoin's volatility makes collateral terms central to the product's appeal and risk. Poliakov said a 40% drop in BTC would push a standalone loan starting at 50% loan-to-value to about 83%. APX says a mortgage backed by both Bitcoin and property would be assessed differently, but it has not disclosed the mortgage program's loan-to-value limits, margin-call conditions or liquidation rules.
APX says it uses BitGo for custody and does not lend out customer collateral. Its existing lending system partially sells Bitcoin when loan-to-value reaches 90%, bringing it down to 85%; those controls do not establish the terms for the planned mortgages. Poliakov said the program would have separate collateral and default provisions.
Frequently asked questions
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When does APX plan to launch Bitcoin-backed mortgages in Canada?
APX Lending plans to begin offering the mortgages in the first quarter of 2027. It has opened a waitlist.
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How much Bitcoin could a buyer pledge for a $475,000 home's down payment?
APX CEO Andrei Poliakov said a buyer could borrow $95,000 for a 20% down payment by pledging $190,000 in Bitcoin.
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What happens to Bitcoin collateral if its price falls?
A sharp decline could require borrowers to add collateral or lead to Bitcoin being sold, depending on the mortgage terms. APX has not disclosed those terms.
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Has APX announced mortgage rates or liquidation rules?
No. APX has not announced mortgage rates, loan-to-value limits, margin-call conditions or liquidation rules, and says it will disclose terms ahead of launch.
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How does APX say it handles customers' crypto collateral?
APX says it uses BitGo for custody and does not lend out customer collateral. Its existing loan liquidation controls do not establish the terms for the planned mortgages.
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