Australians Use Bitcoin to Secure Home Loans 2025

Crypto holders now have a new method to enter the real estate market without selling their assets, thanks to a startup launching a Bitcoin-backed mortgage as home prices in Australia continue to rise faster than salaries.

After battling with authorities in court for more than two years, Block Earner introduced the nation’s first Bitcoin-backed home loan on Wednesday. An April Federal Court decision, which determined that Block Earner’s cryptocurrency loan products did not meet the Corporations Act’s definition of “financial products,” allowed for the creation of the product.

The firm does not need to have a financial services license to utilize Bitcoin as collateral for house loans, according to the court.

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Under this arrangement, the custody platform Fireblocks protects the cryptocurrency holdings of the borrowers. A conventional mortgage is used to fund the remaining sum, with the Bitcoin acting as security for a cash loan up to 50% of the property’s worth.

This strategy not only gives Bitcoin owners additional options, but it also reexamines the standards for evaluating creditworthiness, shifting the focus away from more conventional factors like income, cash reserves, and superannuation—Australia’s mandatory retirement savings plan.

Other nations are experimenting with Bitcoin and cryptocurrency-backed mortgages besides Australia. Institutions in the US are also taking steps to provide house loans secured by cryptocurrency.

On June 25, Fannie Mae and Freddie Mac were directed by William Pulte, the chairman of the Federal Housing Finance Agency (FHFA), to find ways to use bitcoin holdings on approved centralized exchanges as reserve assets to guarantee mortgages.

In a letter, he directed both government-sponsored enterprises (GSEs) to consider cryptocurrencies as a reserve asset when assessing mortgage risk.

The US House of Representatives received a new measure on Monday that would mandate that mortgage firms revise their policies to acknowledge bitcoin holdings on regulated exchanges as a component of a borrower’s financial profile.

The law would increase access to house loans for holders of digital assets by permitting cryptocurrency to count toward mortgage eligibility without needing conversion to dollars, if it is approved.

If passed, the bill would allow crypto to count toward mortgage eligibility without requiring conversion to dollars, expanding access to home loans for digital asset holders. Leading the way in the development of crypto-backed home loans are the housing crises in the US and Australia.

Australia’s property market is infamously one of the most expensive in the world. The average household income is over ten times the price of a home throughout the nation. Second only to Hong Kong, Sydney’s housing costs are over 14 times the median income.

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In 2024–2025, median home prices in the United States surpassed $420,000, which is almost seven times the typical household income.The population has suffered greatly as a result, with homelessness in the US recently breaking all previous records.

Over 653,000 homeless persons were reported in a single night in January 2023, the most since the US began keeping track of the figure in 2007, according to the US Department of Housing and Urban Development’s Annual Homelessness Assessment Report (AHAR).

Although rising property prices have made homeownership more and more unaffordable for many people in both nations, prices have decreased in comparison to Bitcoin, which has increased by about 87% in the last 12 months.