Bitcoin Mortgages: Australians Get a New Way to Buy Homes
Date: 2025-07-21 Author: Henry Casey Categories: IN WORLD
Block Earner has launched a lending program in which cryptocurrency plays a key role. The new service became possible thanks to a Sydney court decision: local authorities tried to force the company to obtain a financial services license, but the court sided with Block Earner and recognized that cryptocurrency loans are not subject to traditional regulation.
Block Earner clients can put up Bitcoin as collateral and receive a loan in fiat currency that covers up to half the cost of the selected property. All funds are stored on the Fireblocks platform, which, according to company representatives, ensures a high level of security. Interestingly, the Bitcoin collateral does not cancel the classic mortgage - borrowers supplement it with a traditional bank loan.
To calculate the creditworthiness of future homeowners, not only the usual indicators such as income or savings are taken into account, but also the volume of their digital assets. Block Earner emphasizes that this approach can help get out of the protracted housing crisis that Australia has been struggling with in recent years. According to statistics, housing prices in the country exceed the average household income by almost ten times, and in Sydney - by fourteen. Against the backdrop of the rapid growth of Bitcoin - more than 80% over the past year - buying real estate with cryptocurrency is becoming more attractive.
Earlier, the Australian Securities and Investments Commission (ASIC), through its commissioner Alan Kirkland, insisted that all cryptocurrency services must have an AFS license. However, the court verdict gave rise to a new direction - now Block Earner will be able to develop mortgage programs with cryptocurrency collateral without additional bureaucratic obstacles.
According to analysts, using crypto assets as part of a mortgage portfolio can attract a new audience - primarily those who have accumulated significant amounts in Bitcoin and want to convert them into "real" square meters. Given the high volatility of cryptocurrencies, such decisions seem risky, but supporters of the idea assure that a competent risk assessment and cooperation with reliable platforms like Fireblocks will minimize threats.
Thus, another opportunity to purchase housing has appeared in Australia by combining classic instruments with modern digital assets. Perhaps, such hybrid models will become common practice in the real estate market in the coming years.
