Canadian lender APX Lending plans to launch Bitcoin-backed mortgages in early 2027, giving homebuyers the option to borrow against their BTC holdings instead of selling them to fund a property purchase. The product is expected to support financing for down payments or potentially an entire home, although APX has not yet disclosed its interest rates or detailed lending requirements.
The Toronto-based company opened a waitlist on Wednesday and expects to make the mortgages available during the first quarter of 2027. APX, which already provides loans backed by digital assets, says it aims to become Canada’s first regulated Bitcoin-backed mortgage provider.
In September, the lender announced five-year lines of credit secured by Bitcoin and Ethereum. Its planned mortgage offering would extend crypto-backed borrowing into Canada’s residential property market, where outstanding mortgage debt totaled $1.75 trillion in June, according to the Canada Mortgage and Housing Corporation.
Comparable products are already available in the United States. Miami-based lender Milo said in February that it had originated more than $100 million in crypto-backed mortgages, including a single $12 million loan. The company allows customers to secure mortgages using Bitcoin or Ether, with repayment terms of up to 30 years.
APX founder and CEO Andrei Poliakov told CoinDesk that Canada’s potential market for Bitcoin-backed real estate financing could reach between $60 million and $100 million. He also noted that real estate already represents 15.8% of the company’s existing crypto-backed loan volume.
For a property worth around $650,000, Poliakov said a borrower could obtain $95,000 for a 20% down payment by pledging $190,000 in Bitcoin. Buyers hoping to finance the entire property without an initial cash contribution would need to pledge approximately $465,000 in Bitcoin, with the home itself also securing the loan.
APX Mortgage Rates and Conditions Have Yet to Be Announced
APX has not released details covering mortgage interest rates, repayment periods, loan-to-value limits, or the circumstances that could trigger margin calls or collateral liquidation.
The lender’s existing crypto-backed loans carry annual interest rates of 9.99% to 11.49%, based on a 60% loan-to-value ratio. However, those figures should not be treated as indicative of the terms for its upcoming mortgage product.
Poliakov said adding real estate as collateral could potentially reduce borrowing costs, but he did not provide an estimated interest rate.
Bitcoin’s price volatility remains a key risk. If the cryptocurrency experiences a sharp decline, borrowers could be asked to pledge additional assets or face the liquidation of some of their Bitcoin holdings, depending on the contractual terms.
Poliakov said a 40% decline in Bitcoin’s value would push the loan-to-value ratio of a standalone loan initially set at 50% to approximately 83%. Loans secured by both Bitcoin and the property would be evaluated under a separate framework.
Bitcoin Volatility Creates Potential Risks for Homeowners
APX said it uses BitGo to hold customers’ cryptocurrency in custody and does not lend out the pledged assets. Its current lending platform also features automated liquidation safeguards that sell part of a borrower’s Bitcoin when the loan-to-value ratio reaches 90%, bringing it back down to 85%.
The proposed mortgage product will have its own collateral and default rules, including provisions covering notice periods and opportunities for borrowers to address collateral shortfalls.
Poliakov explained that selling Bitcoin collateral and enforcing a mortgage against a property are separate processes. Whether a collateral shortfall could ultimately threaten ownership of the home would depend on the specific loan agreement.
“Canadians shouldn’t have to choose between owning Bitcoin and owning a home,” Poliakov said.
Interested borrowers can currently sign up for the waitlist. APX has not announced when it will publish the complete mortgage terms, but Poliakov said the details would be available before the planned launch in early 2027.
