Block Earner Launches Australia’s ‘First’ Bitcoin-Backed Home Loan
Block Earner, a Sydney fintech, introduces Australia's first Bitcoin-backed home loan, allowing Australians to buy homes without selling their Bitcoin. The loan offers up to 50% of a property's value secured against the borrower's Bitcoin, held in custody with Fireblocks. Repayments can be made in cash or crypto, with no penalties for early exit. The loan is interest-only for up to four years, enabling borrowers to maintain Bitcoin exposure while avoiding liquidation and tax issues. A 60% loan-to-value ratio caps borrowing, and borrowers receive a 30-day notice to adjust if Bitcoin's value drops significantly. Block Earner reports over AUD$110 million in early interest during its soft launch. The model reflects international trends, with potential implications for mortgage eligibility in the U.S. The average Australian home price measured in Bitcoin has decreased significantly since 2016, suggesting that using crypto for real estate is strategically advantageous.
