APX plans bitcoin-backed mortgages in Canada as terms remain undisclosed

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APX bitcoin-backed mortgages Canada

Highlights

APX Lending launches a waitlist for bitcoin-backed mortgages, targeting product availability in Canada in Q1 2027 and aiming to be the country's first regulated provider.
APX estimates Canada's bitcoin-backed real estate financing market at $44 million to $73 million, with 15.8% of its current crypto loans already tied to real estate.
Key mortgage terms such as rates and loan-to-value limits remain undisclosed, while bitcoin price swings pose major risks and could trigger margin calls or collateral liquidations.

Launch plan and lending structure

As reported by CoinDesk, Toronto-based APX Lending says it opens a waitlist for bitcoin-backed mortgages on Wednesday and expects to begin offering the product in the first quarter of 2027.

The lender says homebuyers would be able to borrow against bitcoin for either a down payment or the full purchase price. APX, which already offers crypto-backed loans, says it aims to become Canada's first regulated bitcoin-backed mortgage provider.

Chief executive Andrei Poliakov says the Canadian market for bitcoin-backed real estate financing could range from $44 million to $73 million. He adds that 15.8% of APX's existing crypto-backed loan volume is already tied to real estate activity.

For a home costing about $475,000, Poliakov says a buyer could borrow $95,000 for a 20% down payment by pledging $190,000 in bitcoin. A buyer financing the entire purchase without a cash down payment would need to pledge about $475,000 in bitcoin, with the property also serving as collateral.

Borrower risks and market implications

APX has not disclosed mortgage interest rates, repayment periods, loan-to-value limits or the conditions that could trigger margin calls or collateral liquidation. Its current crypto-backed loans carry annual rates of 9.99% to 11.49% based on a 60% loan-to-value ratio, but the company says those terms do not necessarily apply to the planned mortgages.

Bitcoin price swings remain a central risk for borrowers. Poliakov says a 40% drop in bitcoin's price would push a standalone loan starting at 50% loan-to-value to about 83%, while a mortgage secured by both the property and bitcoin would be evaluated differently.

APX says it uses BitGo to custody customer cryptocurrency and does not lend out pledged collateral. The company says its current lending system partially sells bitcoin when loan-to-value reaches 90%, reducing it to 85%, while the mortgage program is expected to have separate collateral and default provisions, including any notice periods and opportunities to cure a shortfall.

The product would bring crypto lending into Canada's residential mortgage market, where outstanding debt reaches $1.75 trillion in June, according to the Canada Mortgage and Housing Corporation. Similar products are already available in the U.S., where Miami-based Milo says in February that it has originated more than $100 million in crypto-backed mortgages, including a single $12 million loan.

In our earlier coverage of Pakistan’s push to expand priority-sector lending, we explained how the government is pressing banks to scale up financing for housing, agriculture and SMEs, linking stronger lending performance to access to incentives. The report detailed targets such as billions in planned housing finance, faster mortgage application processing, and reforms like risk-sharing and public-private partnerships aimed at widening formal credit access by 2027.

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