Say hello to crypto mortgages

No, you do not need to sell any of your crypto to fund the mortgage. Your crypto stays as crypto, held with our custodian partner over the duration of the loan.

You can withdraw your crypto once your loan is repaid, or when your loan to value ratio is over the threshold we set (for example 50%).

The way our crypto mortgages work is that we split the borrowing between a traditional lender who would lend up to 80% of the value of the property, and a crypto loan. The crypto loan needs to be 200% over-collateralised when the loan is drawn down. So to borrow a crypto loan of $100k you need to provide $200k of collateral. This is a loan to value ratio of 50% (the loan is 50% of the value of your collateralised crypto).

For example, for a $1m property you would need $1m in crypto if the mortgage was for $500k (meaning that the other $500k would need to be covered by a crypto loan), or $400k in crypto if the mortgage was for $800k (meaning that the other $200k would need to be covered by a crypto loan).

Part of our process is to find the right traditional mortgage for you, to sit alongside your crypto loan. We find the best deal from all mortgage providers comfortable with the crypto lending element of the property purchase. This means the overall rate is as competitive as it gets.

We work on loan to value (LTV). If your LTV ratio hits 73% we liquidate 33% of the collateral to repay a portion of the loan. This improves the LTV ratio to 60%. If crypto keeps going down we would liquidate another 33% at 73% LTV ratio and so on. The net result is that the downpayment element of the loan is repaid in full, and you don’t owe anything more. We send alerts as the LTV ratio approaches liquidation, and you can top up your collateral with ETH, BTC or USDC to improve your LTV ratio at any point.

Unlike other lenders, we do not re-lend the collateral you deposit with us. Your crypto is held in an insured wallet with Fireblocks and never leaves our custody. We then use a smart contract to borrow against the collateral from one of the top DeFi protocols. All assets are visible on-chain so you will be able to see the collateral we hold and the value of loans made to protocols. This means that we run a 100% transparent model where you can see the health of the lending book in real-time – something no bank or other lender is offering.

We keep our loan to value ratio (LTV) at 50% as that gives both you and us an acceptable buffer against any possible rapid reductions in the price of the cryptocurrency you’ve deposited as collateral.

ByBrix crypto mortgages have two elements: the first is a loan collateralised by your crypto, and the second is a traditional mortgage.

The crypto you deposit with us as collateral is not used to secure your property – it is only used to secure the crypto loan element of your crypto mortgage. And the traditional mortgage element of your crypto mortgage is not secured by your crypto, it is only secured by your property.

This means that each element of your crypto mortgage has a different asset (crypto or property) securing it. We do not use both assets to secure each loan.