Canada's APX Lending to Launch Bitcoin-Backed Home Purchase Loans in First Quarter of 2027

Canada-based lender APX Lending plans to launch a product that allows homebuyers to borrow for a down payment or a home purchase using Bitcoin as collateral. The structure would let clients use their holdings for a home purchase without selling them. Interest rates and detailed loan terms will be disclosed later.

CoinDesk reported on October 28 that APX Lending opened a waitlist that day. The company is targeting a launch in the first quarter of 2027.

"Canadians should not be forced to choose between holding Bitcoin and owning a home," APX Lending founder and Chief Executive Officer Andrei Poliakov said.

In an example provided by the company, a borrower seeking a 20% down payment on a $475,000 home, or $95,000, would need to post $190,000 worth of Bitcoin as collateral. For borrowers financing the full purchase price, additional Bitcoin would be required, with the home itself also used as collateral.

A drop in Bitcoin's price could trigger a margin call or liquidation. Poliakov said that in a standalone loan with an initial loan-to-value ratio of 50%, a 40% decline in Bitcoin would raise the LTV to about 83%.

APX Lending's existing crypto-backed loans carry annual interest rates of 9.99% to 11.49%. The company also operates a mechanism that automatically sells part of a client's Bitcoin if the LTV reaches 90%, reducing it to 85%. The new mortgage product, however, will have separate terms rather than simply applying the same rates and liquidation thresholds.

APX Lending said it uses BitGo to custody client crypto assets and does not rehypothecate collateral. The company plans to disclose collateral maintenance requirements and default-related provisions for the new product before launch.