Block Rearner, a Sydney-based fintech provider of Crypto Hight and Payment products, is pitching a new way for Australians to buy homes without selling Bitcoin.
Crypto Firm, which deploys what is known as Australia’s first Bitcoin-assisted mortgage, offers up to 50% of the value of the property as a deposit loan protected against borrowers’ Bitcoin.
Cryptocurrency is being held on FireBlocks, a digital asset security platform. Repayments can be made either cash or crypto, and borrowers can terminate early without penalty.
“Crypto Holders shouldn’t have to choose between holding Bitcoin or buying a house,” said Charlie Karaboga, CEO and co-founder of Block-Hearner, in a statement.
Karaboga characterizes its products as a “turning point” in real estate financing in the digital asset sector. “We’re giving them smarter options, a way to get their code to work without giving up.”
The model is simple. The user transfers Bitcoin to the custodian, borrows half the value of the property as a deposit, then retrieves the remaining amount from the traditional lender.
Bitcoin loans only earn interest for up to four years, but block collectors claim that borrowers can maintain BTC exposure while avoiding the liquidation of sales and tax impact.
Volatility Handling
Karaboga asked how to manage Bitcoin volatility Decryption Loans are limited by a 60% loan-value ratio. In other words, the amount borrowed cannot exceed 60% of the value of Bitcoin as collateral.
“We use 60% LVR and the loan comes with a monthly repayment component. As part of the regulations, if prices drop sharply, block collectors will provide 30-day notices to revise the LVR with Fiat repayment, collateral repayment, or Bitcoin restocking,” Karaboga says.
He explained that buffers protect against price fluctuations and help reduce the risk of forced liquidation.
“In the last 30 days, either the customer or the market will fix the LVR or block earnings will only sell partial BTC to fix it,” Karaboga said. Decryption. “Homes are not at risk at the price of Bitcoin.”
Block Rearner claims it recorded AUDs to $110 million (US$72.4 million) with early borrower interest during its soft launch.
Blocks and bricks
The company’s models appear to be a shadow movement overseas.
In the US, housing regulators are considering whether code can be used It was counted Towards mortgage eligibility.
Block Rearner claims that long-term Bitcoin and gold holders have greater purchasing power despite the continued rise in real estate prices from a Fiat perspective.
Measured in Bitcoin, average home prices in Australia fell from 627 BTC in 2016 to just 4.3 BTC in 2024.
If Bitcoin continues to outweigh inflation, but real estate prices simply track it, block collectors claim they use crypto to access their real assets.
