APX Lending is preparing to introduce Bitcoin-backed mortgages in Canada in early 2027, giving borrowers a way to finance home purchases using their BTC holdings without having to sell their cryptocurrency. The planned service could allow Bitcoin to cover a down payment or potentially the full property price, though the lender has yet to reveal its mortgage rates and complete borrowing terms.

The Toronto-based lender launched a waitlist on Wednesday, with the product expected to become available in the first quarter of 2027. APX already offers loans secured by cryptocurrencies and says the new service could make it Canada’s first regulated provider of Bitcoin-backed mortgages.

The move follows the company’s announcement last month of five-year lines of credit backed by Bitcoin and Ethereum. APX’s mortgage plans target Canada’s housing market, where outstanding mortgage debt reached $1.75 trillion in June, according to the Canada Mortgage and Housing Corporation.

Crypto-backed mortgages have also gained ground in the United States. Miami-based lender Milo reported in February that it had originated more than $100 million in such loans, including a $12 million mortgage. Its products allow borrowers to use Bitcoin or Ether as collateral and offer repayment periods of up to 30 years.

APX founder and CEO Andrei Poliakov told CoinDesk that the Canadian market for Bitcoin-backed real estate financing could be worth between $60 million and $100 million. He added that property-related borrowing already accounts for 15.8% of the company’s existing crypto-backed loan volume.

Poliakov outlined an example involving a home valued at approximately $650,000. A buyer could borrow $95,000 for a 20% down payment by pledging $190,000 in Bitcoin. To finance the entire purchase without providing a cash down payment, the borrower would need to pledge around $465,000 in BTC, with the property also serving as security for the loan.

Interest Rates and Mortgage Requirements Remain Undisclosed

APX has not yet specified the mortgage product’s interest rates, repayment schedules, loan-to-value limits, or the conditions that could lead to margin calls or the liquidation of pledged Bitcoin.

The company’s existing crypto-backed loans carry annual interest rates ranging from 9.99% to 11.49%, with a 60% loan-to-value ratio. Those terms, however, may differ from the conditions applied to its planned mortgages.

Poliakov said using the property as additional collateral could help lower borrowing costs, but he did not provide a projected mortgage rate.

Bitcoin’s price fluctuations could create additional financial pressure for borrowers. A substantial decline in BTC’s value may require customers to provide more collateral or risk having part of their holdings sold, depending on the agreement.

As an example, Poliakov said a 40% drop in Bitcoin’s price would push the loan-to-value ratio of a standalone loan that began at 50% to approximately 83%. Loans backed by both Bitcoin and real estate would be assessed differently.

Collateral Liquidation Could Create Risks for Borrowers

APX said it uses BitGo for cryptocurrency custody and does not lend customers’ pledged assets to other parties. Its existing lending system also includes automated liquidation measures that sell a portion of Bitcoin collateral when the loan-to-value ratio reaches 90%, reducing the ratio to 85%.

The upcoming mortgage offering will have separate provisions for collateral management and defaults. These will include notice requirements and opportunities for borrowers to resolve collateral shortfalls.

Poliakov emphasized that selling pledged Bitcoin is distinct from enforcing a mortgage against a home. Whether a decline in collateral value could eventually put a property at risk will depend on the specific terms agreed upon by the lender and borrower.

“Canadians shouldn’t have to choose between owning Bitcoin and owning a home,” Poliakov said.

APX is currently accepting waitlist registrations from interested customers. The company has not provided a firm date for releasing the full mortgage terms, but Poliakov said the details would be announced before the expected launch in early 2027.