APX Lending, a Toronto-based cryptocurrency lending company, announced plans to introduce Bitcoin-backed mortgages in Canada in the first quarter of 2027. The product would allow homebuyers to use their Bitcoin holdings as collateral to borrow money for property purchases, preserving their cryptocurrency ownership while accessing funds for real estate.
Under the proposed structure, borrowers would pledge Bitcoin to secure a loan. For example, a down payment loan of $95,000 would require $190,000 in Bitcoin collateral for a $475,000 home purchase. Alternatively, borrowers could pledge $475,000 in Bitcoin to cover the entire purchase price, with the property serving as collateral.
APX has opened a waitlist for the product, though interest rates, repayment periods, and borrowing conditions have not yet been announced. The company currently stores customer cryptocurrency through BitGo and does not lend out pledged assets. Separate rules will govern collateral shortfalls, liquidations, and defaults under the mortgage product.
Market Context
Canada's residential mortgage debt reached $1.75 trillion in June. The move reflects a growing market for cryptocurrency-collateralized lending. In the United States, a similar product called Milo has originated more than $100 million in cryptocurrency-backed mortgages. Sygnum Bank and Debifi also launched MultiSYG, a Bitcoin loan service using segregated multisignature wallets to distribute control of collateral among clients, banks, and independent institutional keyholders.
Borrower Considerations
A key advantage of Bitcoin-backed mortgages is that borrowers retain exposure to potential price appreciation while accessing funds for property purchases. However, a significant decline in Bitcoin's value could reduce collateral worth, potentially requiring borrowers to add funds or sell Bitcoin to meet lending requirements.
