Getting A Mortgage With Bitcoin As Collateral? Yeah, Of Course

[dragosroua]

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I know it sounds too good to be true, almost ironic, and yet, it's true. If we were to believe this news, Milo, a US fintech company is allowing customers to put down Bitcoin as collateral, get a mortgage based on that, and buy a house. A real one, that is.

The announcement came yesterday, and we still don't know the exact conditions, but the news seems valid so far.

Of course, the company is betting on the famous crypto paradigm known as "ngu" (in translation: numbers go up) which proved to be true for the last 13 years, since Bitcoin was invented and launched.

I'm curious: would you put your Bitcoin as collateral to buy a house? If no, why? If yes, what's the interest you would be willing to pay on such a mortgage?

Photo by Phil Hearing on Unsplash

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Comments

[tomlee]

If it turns out to true then Bitcoin has found for itself another major use case.

However, I wouldn't stake my BTC as collateral. I'd rather just HODL it myself till it's the right time to sell. BTC is already an hedge on itself for hodlers

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[eroche]

Very interesting news

Of course, the company is betting on the famous crypto paradigm known as "ngu"

One of the key details on this will be the LTV ratio. Say you have Bitcoin worth $1m they might just let you borrow a percentage, say 10%. This will protect Milo from falls in prices. They may not be taking that big a gamble here!

would you put your Bitcoin as collateral to buy a house?

I wouldn't use Bitcoin as Collateral to buy a home for two reasons

• mainly because the price is too volatile. Maybe a rental property or as an investor but for a home I feel you need a bit more stability. You need to be able to sleep at night 😀
• The second reason is practically speaking it will get complicated. Tax liabilities are unclear, having a fintech (startup) financial institution with custody of your bitcoins is even scarier than having it on an exchange IMO

[dadspardan]

I'm wondering if this is gonna be a product to change the market, or as a purely promotional product used to grab and advertise them as a business, time will tell and i hope it the first one

[teodora]

I will probably not, I am in the process of buying a flat where I live but I would not use Btc for it. I will keep it more like with the hope that one day it will make me silly rich, or if not at least I have tried 😂

[dragosroua]

I like the "silly rich" approach 😉

[jeezzle]

I remember hearing something similar in 2018. Condos were being sold for Bitcoin. I can't remember where. I certainly don't like the idea of buying something with an investment. If you wouldn't use your retirement funds to pay for something, then I don't think you should use Bitcoin either. Of course everyone's different.