Australia Launches First Bitcoin-Backed Home Loans

Australians can now leverage Bitcoin as collateral to grab a slice of the housing market.
Fintech firm Block Earner secured a legal victory in Australia’s Full Federal Court in April, establishing that its Bitcoin-collateralized lending products don’t require a financial services license. Fresh off this win, they’ve introduced the country’s first Bitcoin-backed home loan. Borrowers lock their BTC in a secure custodian (Fireblocks), then take out a cash loan—up to 50% of the home’s value—while retaining ownership of their Bitcoin.

​​ ​What It Means for Homebuyers

• Keep holding Bitcoin: Borrowers avoid capital gains implications by not selling their holdings.
  
• Flexible repayment: Interest-only periods extend for up to four years at rates starting around 9.5% p.a.
  
• Risk shelter: With a Loan-to-Value (LTV) ratio capped at 40–50%, and a 30-day margin call buffer, homeowners aren’t forced into immediate liquidations if BTC dips.
  
• Faster access: Block Earner promises rapid approval—within 24 hours—and no early repayment penalty.
  

​​Why It Matters Now

Australia is one of the world’s least affordable housing markets—Sydney homes trade at roughly 14× the median household income. By using Bitcoin as collateral, long-term holders can tap property wealth without selling or abandoning gains. Over A$110 million in early interest shows both pent-up demand and a shift in how Bitcoin can function in real-life finance