Australia is set to welcome its first-ever home loan backed by Bitcoin after a court ruling removed certain legal hurdles, opening new doors for crypto use in traditional finance . Sydney-based fintech company Block Earner announced it would become the first company to offer Bitcoin-backed home loans in Australia after winning a legal victory that clarified its right to provide crypto-collateralized loans without needing a financial services license .
After the landmark victory, Block Earner plans to roll out mortgage products that allow crypto holders to use Bitcoin as collateral while retaining ownership of their digital assets . Interest rates will begin at 9.5% per annum with a 40% loan-to-value ratio, with comparison rates reaching 11.9% per annum at 80% LVR .
The company had faced legal action from the Australian Securities and Investments Commission (ASIC), which argued that Block Earner's fixed-yield crypto lending products resembled investment products and therefore required licensing under financial services regulations . While the Federal Court initially ruled in ASIC's favor, that decision was overturned in April by the Full Federal Court . In a landmark judgment, the appellate court found that Block Earner's products did not constitute “financial products” under Australian law .
Block Earner will offer loans up to $5 million, with deposit loans up to 60 per cent of the bitcoin's value . Customers can pay interest-only for up to four years, either with crypto, Australian dollars, or both . Loans will be approved within 24 hours with no lock-ins or early repayment fees .
Block Earner CEO and co-founder Charlie Karaboga said the launch of crypto-backed home loans is a turning point for property finance and digital assets . “Crypto holders shouldn't have to choose between holding Bitcoin and buying a home,” he said .
According to Block Earner data analysis, the average Australian home cost 627 Bitcoin or 350 ounces of gold in 2016. By 2024, that amount had fallen to 4.3 Bitcoin or around 170 ounces of gold .
Block Earner has already logged over AUD$110 million in early borrower interest during its soft launch of its Bitcoin-loan product . This interest highlights the growing demand for financial products that integrate digital assets with traditional real estate investments .