Australia Allows Bitcoin for Home Deposits – Crypto Dream Come True?
Australian Startup Launches First Bitcoin-Based Home Loan
Use Bitcoin as Collateral Without Selling
Australian financial startup Block Earner has just launched what is considered the world's first home loan backed by Bitcoin .
Accordingly, borrowers can use Bitcoin as collateral for a home deposit, without having to sell BTC.
The Bitcoin will be securely held by Fireblocks, while borrowers can pay in installments in cash or cryptocurrency , and there is no penalty for early repayment .
Limit the risk of Bitcoin price fluctuations
To control the risk from Bitcoin price fluctuations, Block Earner applies a maximum loan-to-value ratio (LVR) of 60% .
This means that the company only lends up to 50% of the value of the house , and the amount of Bitcoin collateral must always be maintained within a safe threshold.
If the price of Bitcoin drops sharply and causes the LVR to exceed the allowed level, the borrower has 30 days to add more fiat, more BTC, or pay down the debt .
Only if the above options are not met, a portion of the BTC will be sold — helping to limit the loss to the borrower.
New housing access solutions in the digital age
Block Earner asserts that: “The collateral is Bitcoin, not the house, so the borrower never loses the house because of a drop in BTC price .”
This model opens up a new direction for long-term digital asset holders, both maintaining their Bitcoin investment position and accessing housing .
This is a bold move that represents the intersection of blockchain technology and traditional financial markets in Australia.