Canadian lender APX Lending is preparing to introduce Bitcoin-backed mortgages in early 2027, allowing homebuyers to use their BTC holdings to finance real estate purchases without selling their cryptocurrency. The planned product could cover a down payment or potentially the entire property cost, although interest rates and borrowing conditions have not yet been disclosed.
The Toronto-based company opened a waitlist on Wednesday and expects to launch the mortgages during the first quarter of 2027. APX, which already offers loans secured by digital assets, says it intends to become Canada’s first regulated provider of Bitcoin-backed mortgages.
Last month, the lender introduced five-year credit lines backed by Bitcoin and Ethereum. Its proposed mortgage offering would expand cryptocurrency-backed financing into Canada’s housing sector, where total outstanding mortgage debt reached $1.75 trillion in June, according to the Canada Mortgage and Housing Corporation.
Similar products have found customers in the United States. Miami-based lender Milo said in February that it had originated more than $100 million in crypto-backed mortgages, including an individual loan worth $12 million. Its offerings allow borrowers to use Bitcoin or Ether as collateral, with repayment periods extending to 30 years.
APX founder and CEO Andrei Poliakov told CoinDesk that Canada’s potential market for Bitcoin-backed property financing could range between $60 million and $100 million. He added that real estate transactions already account for 15.8% of the company’s existing crypto-backed lending volume.
For a home priced at approximately $650,000, Poliakov said a buyer could secure $95,000 for a 20% down payment by pledging $190,000 worth of Bitcoin. Buyers looking to finance the entire purchase without an upfront cash contribution would need to pledge roughly $465,000 in Bitcoin, while the property would also serve as collateral.
APX Has Yet to Reveal Mortgage Rates and Terms
The lender has not announced its proposed interest rates, repayment periods, loan-to-value limits, or the conditions that could trigger margin calls or the liquidation of pledged assets.
APX’s existing crypto-backed loans carry annual interest rates between 9.99% and 11.49%, with lending estimates based on a 60% loan-to-value ratio. These figures do not necessarily reflect the terms of its upcoming mortgage product.
Poliakov said using the property as additional security could help reduce borrowing costs. However, he declined to provide an estimated mortgage rate.
Bitcoin’s volatility presents a major consideration for prospective borrowers. If BTC prices fall sharply, borrowers could be required to provide additional collateral or face the sale of some of their pledged holdings, depending on the loan agreement.
According to Poliakov, a 40% drop in Bitcoin’s price would raise the loan-to-value ratio of a standalone loan that initially stood at 50% to approximately 83%. Mortgages backed by both Bitcoin and the property would be assessed differently, he said.
Bitcoin Price Swings Could Put Borrowers Under Pressure
APX stated that it relies on BitGo to custody customers’ cryptocurrency and does not lend out the assets pledged as collateral. Its existing lending platform also uses automated liquidation controls, selling part of a borrower’s Bitcoin when the loan-to-value ratio reaches 90% and reducing it to 85%.
The planned mortgage product will operate under separate collateral and default provisions. These rules will determine applicable notice periods and whether borrowers have an opportunity to resolve a collateral shortfall before liquidation or other enforcement action.
Poliakov stressed that liquidating Bitcoin collateral and enforcing a mortgage against a home are different procedures. Whether a collateral shortfall could eventually put the property at risk will depend on the terms of the individual loan agreement.
“Canadians shouldn’t have to choose between owning Bitcoin and owning a home,” Poliakov said.
For now, prospective customers can join APX’s waitlist while awaiting further details. The lender has not specified when it will publish the complete mortgage terms, but Poliakov said the information would be released before the planned early-2027 launch.
