- APX plans to launch Bitcoin-backed mortgages in Canada in Q1 2027.
- Borrowers could use Bitcoin to fund a down payment or an entire property purchase.
- A $475,000 home could require approximately $190,000 in Bitcoin for a 20% down payment. APX has yet to disclose mortgage interest rates, repayment terms, or loan-to-value limits.
Canadian lender APX Lending plans to launch Bitcoin‑backed mortgages in the quarter of 2027. This will give home buyers a way to buy property without having to sell their cryptocurrency. Yet people who might borrow still do not know details about how much it will cost, how repayments will work, or the dangers of using volatile digital assets as collateral.
On Wednesday, the Toronto‑based company opened a waitlist. It shows the product as a bridge between people who hold cryptocurrency and those who want to own a house. APX says it will be the regulated provider of Bitcoin‑backed mortgages in Canada.
APX Eyes $73 Million Canadian Market For Bitcoin-backed Home Loans
Andrei Poliakov, the founder and CEO of APX, said that people who want to borrow money could use Bitcoin to cover a payment or even pay for a whole property. The house would also be used as security, which might make the cost of borrowing lower than if the loan were only backed by cryptocurrency.
For a house that’s worth about $475,000, someone who wants a 20% down payment of $95,000 could use around $190,000 in Bitcoin, according to Poliakov. To buy the house without paying cash up front, a person would need about $475,000 in Bitcoin as security, along with the house itself.
APX believes the market for Bitcoin-backed real estate loans in Canada is between $44 million and $73 million. The company also said that real estate makes up 15.8% of the crypto-backed loans it currently offers.
Borrowing Costs & Liquidation Risks Remain Unclear
Even though APX promises flexibility, it has not revealed the mortgage interest rates, the repayment periods, the loan‑to‑value limits, or the rules that might trigger margin calls or the liquidation of collateral.
Current crypto‑backed loans from APX have annual interest rates between 9.99% and 11.49 %, and borrowing limits are set at a 60% loan‑to‑value ratio. These rates might not apply to the mortgage product.
Bitcoin price swings are another worry. A big drop could make borrowers add collateral or risk having their pledged Bitcoin sold to lower the loan risk.
Poliakov explained that if Bitcoin falls 40%, a single loan that begins at 50% loan‑to‑value could rise to 83%. Mortgages backed by both Bitcoin and property would be evaluated with collateral rules, he added.
APX stores customers’ crypto with BitGo. Claims it does not lend out pledged assets. When the loan‑to‑value ratio reaches 90 percent, APX’s current system automatically sells part of the Bitcoin collateral to bring the ratio down to 85%. The future mortgage program will have its default rules and collateral rules.
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