Take a guess which year this was written:
When asked which payment method they used most often, 43 per cent of Singaporeans preferred cash, as compared to three per cent who used mobile wallets, and two per cent who used contactless payments. 
If you’re anything like me, you’d be shocked to learn that this survey was conducted in 2017. That’s just five years ago!
And just a year before that in 2016, people were concerned with the security of e-wallets, with articles even claiming that “digital wallets are likely to end up becoming alternative players”.
This could not be more wrong today, as the future of payments is most definitely digital.
It was at that same time in 2017 that I first used the QR code to make my first PayNow payment buying a cuppa joe, and it seemed clear to me back then that physical cash would be a thing of the past.
Today (spurred on by the pandemic as well) it’s become the norm for me and so many others.
And so if there’s anything to learn from the above, it’s just how quickly trends and technology can catch on.
This brings me to my main topic today – crypto mortgages.
So what are crypto mortgages?
Basically, it allows you to finance the purchase of real estate with a loan that is backed by bitcoin.
Getting the basics straight
Different lenders will tell you different things, but essentially, crypto mortgages are a way for you to receive liquid funds without selling the coins you own. There are CeFi & DeFi loans too.
Here’s the situation though.
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Given that bitcoin still has the potential to go up in value (although hard to see now since the Crypto market is a sea of red!), those who are looking at buying a home but have their wealth tied up in bitcoin will find it hard to sell their bitcoin to fund their real estate purchase.
You know, it’s an opportunity cost type thing. The fear is always that the value of bitcoin suddenly shoots up in the next few months while your property purchase stays stagnant.
So with crypto mortgages, you can now use your digital assets as collateral to receive either cash or stable coins as a loan. One alternative to this is that you can convert your digital “money” to fiat cash, but that comes with its own tax consequences.
By pledging your crypto assets, you’ll have to pay the amount off over a certain agreed tenure. This could be over something like 30 years.
CeFi crypto loans vs DeFi crypto loans
Crypto Loans 101: CeFi vs. DeFi – It’s Like Choosing Between a Handyman and an AI Robot
Picture this: You’ve got a shiny crypto wallet full of digital coins you’re hoping to leverage for a bit of extra cash. You’re at a crossroads – either give your assets a safe away to a bank-like entity or keep them in your own hands while smart contracts do the heavy lifting. That’s the fundamental divide between Centralised Finance (CeFi) and Decentralised Finance (DeFi).
CeFi – The Traditional Guard Dog
CeFi will hand over your crypto to a trusted custodian. Think of it like sending your prized collectibles to a bank vault. You’ll lose access to your coins until the loan is paid off. The benefit? It’s straightforward: you get liquid cash with minimal hassle.
DeFi – The Smart Contract Party
DeFi puts the power back in your hands – it’s like letting your friends own your collection while you owe them. Smart contracts hold the coins as collateral but you never have to give up actual ownership unless you default. If you do flip the situation, your chain of responsibility is intact.
What Do You Get From DeFi?
- Instead of a direct cash cheque, you receive stablecoins (USDT, DAI, or UST). Think of them as the “stable coins” that don’t do the roller coaster ride like BTC or ETH.
- You can flip those stablecoins into real-rough-credit cash at an exchange – that’s how you keep the money moving.
- Trade‑off? DeFi typically comes with higher interest rates than the old‑school CeFi counterpart.
Borrowing Without the Paper Chase
Historically, using crypto as collateral meant endless paperwork – refinancing was a nightmare; it’d take longer than your grandma’s recipe book to finish. Thankfully, tech has stepped in with a more efficient wizardry.
Some Wizards in the Field
- Milo: “More distributed than your typical accounting trip.” — CEO Rupena
- Ledn
- Abracadabra
- Alchemix
- Figure
These companies have innovated ways to keep borrowing smooth and painless, giving you extra time to grow wealth, whether it’s through real estate, crypto, or the ever‑evolving list of investment opportunities.
Bottom Line
So whether you’re more into the hands‑off style of CeFi or loving the DIY spirit of DeFi, there’s a crypto loan solution out there. Pick what feels right for you – just remember: in finance, as in life, keeping a good sense of humor can make all the difference.
However, there are definitely its own sets of risks. Even Rupena affirmed that regular investors with no high-risk tolerance should give this new mortgage a miss.
The volatility of the coin’s value and lack of understanding of the real estate market could be your major pit falls. Don’t bite off more than you can chew.
Currently, Milo and Figure offer 100 per cent loan of your cryptocurrency value with no downpayment required. Milo offers loans up to US$5 million (S$6.9 million) and accepts BTC, ETH, and stablecoins, whereas Figure offers a maximum mortgage of US$20M and accepts BTC and ETH.
Before approving any loan, your full credit profile will be assessed – how much debt you have on your car, your credit card, and other liabilities.
Thus far, 63 countries already have these crypto-mortgage transactions including USA, Canada, UK, Argentina, and Mexico. Singapore has her own share of co-investing in real estate investing via blockchain tech too.
With how prevalent technology is in our lives today, it’s great to know that this concept is becoming more accessible. While regulations everywhere are different, it’s a good alternative to have and a big step forward for cryptocurrency and its legitimacy.<img alt="" data-caption="The CODA building in NYC has commercial units only available for sale exclusively via BTC.
PHOTO: Stackedhomes” data-entity-type=”file” data-entity-uuid=”85b64528-b6d2-450b-b75b-2429995a5ecd” src=”/sites/default/files/inline-images/Screenshot%202022-05-12%20at%2012.39.12%20PM.png”/>
Weighing the pros & cons
Pros
Pro 1: More potential for wealth growth
Why Holding Your Crypto Might Be the Best Move for Your Home Loan
Picture this: you’re looking to buy a house but instead of using your crypto as collateral, you just keep it. That’s the key perk of this setup – no tax headaches, and there might even be savings if you skip a crypto‑only purchase entirely.
What Makes This So Irresistible?
- Skip the Gains Tax – By not dipping into your coins, you keep the tax folks happy. (Just follow whatever local tax rules the crypto gurus say.)
- Save a Buck – Think of the extra cash you could pocket if you avoid a crypto‑only transaction.
- Keep Your Long‑Term Dreams Alive – For the HODLers out there, you get the “hold for good” vibe while still getting a mortgage.
Long‑Term HODLers, This One’s For You
If you believe that Bitcoin is going to keep climbing, this plan gives you the best of both worlds: you stay in the crypto game for the future upside, but you also lock in your mortgage without scooping up your holdings. It’s the very sweet spot between “invest now” and “borrow smart.”
How to Liquidate Your Coins in a Smarter Way (According to Reddit)
Want a quick look at a cooler way to flip crypto for cash? Here’s a Reddit thread that breaks down a less‑tricky, more long‑term strategy for turning those assets into cold hard cash without losing your pulse.
Bottom line? You can keep your crypto portfolio flourishing and still secure your dream home hassle‑free. It’s like having your cake and eating it too – literally, if you’re into digital pies.
Thoughts? I’d also like to point out that this doesn’t take into consideration any BTC or ETH gain in values.
Pro 2: Lower barriers of entry
Why Your Crypto Won’t Cut It as a Loan Endorsement
First off, there’s no point convincing lenders that your digital coins can keep a loan afloat. In most places, that’s a straight no‑go.
So, Where’s the Real Purchase Power?
You can showcase your crypto holdings when applying for a loan, but folks will still dig deeper—checking your credit score, your repayment track record, and the whole financial picture.
What Lenders Will Totally Crack Into
- Credit score – numbers speak louder than zeros and ones.
- Repayment history – past punctuality signals future reliability.
- Portfolio size – a bigger digital treasure chest gives more wiggle room for stress tests.
- Market volatility – if your coins bounce wildly, that raises a red flag.
Bottom Line?
Crypto’s neat, but think of it as an interesting side note rather than the headline act on your financial stage.
Pro 3: Fast funding
Crypto Loans: Fast‑Track Financial Freedom
Forget the long‑haul grind of traditional banking; with crypto loans the approval process is a quick sprint. Once the green light is given, you could be getting the money in just a few hours or, at worst, a few weeks – and that’s definitely faster than the usual traditional route.
Pro 4: Payment payable by fiat or coins
Depending on the platform you use, you can receive loans from these companies via fiat or stable coins. The same goes for your payment for the mortgage every month.
Cons
Con 1: Unstable coin values
This is definitely one of the major deterrents to mass adoption of mortgages via coins – the value is so volatile every day. This puts mortgagees in a tight spot for risk.
For example, if you use ETH to pay for your 3rd property and ETH fell 30 per cent the next week, the interest rate on your property will be higher. Not just that, you’d have to table out more crypto to prop up the collateral.
Seeing how the crypto market has been playing out the past few days, it’s even clearer to see just how much of a risk it can be when the market is so unpredictable.
Con 2: Forced liquidation
Like any mortgage, if you don’t pay your crypto loan, you might find your coins being liquidated by the lender to recoup the company’s losses. In that case, you might be subjected to tax depending on your timeline of liquidation. Do check with a tax professional to confirm!
Con 3: Cyber security
Scams Are Real—No Coin Transfer Is Completely Safe
Even if crypto feels like a fancy vault, the truth on most platforms is a little wobbly.
My Wallet Woes
I once moved a batch of coins from Binance to my personal wallet. I felt like a digital Black‑Jack player. Then half the coins disappeared—like they’d been siphoned by an invisible thief.
Why it Matters
- Every platform comes with hidden risks—think of it as a magician’s hat that occasionally misfires.
- There’s an ongoing tug‑of‑war between trust and tech glitches.
- Customers deserve protection, which is why a solid KYC process is essential.
KYC: The Real Deal
Picture KYC as the bouncer at a high‑end club. If you’re not genuine enough, you get turned away.
Bottom Line
If you’re tempted to splash your digital treasure around, remember that scammers and hackers are always lurking. Staying vigilant and sticking to strict KYC guidelines keeps the playground cleaner and safer.
Con 4: Higher interest rates
Interest rates for regular loans have been rising, but you will also be facing a higher interest rate for crypto mortgages.
As an example, Milo offers interest rates for crypto mortgages of between about four per cent and six per cent.
Final thoughts
Why Crypto is Finally Getting Physical
Picture This
Imagine your crypto holdings turning from invisible numbers on a screen into a real, tangible thing you can touch or hang on your wall. If you’re a crypto enthusiast, that’s exactly the vibe this new trend is buzzing about—making digital money feel like the old‑school cash you’re used to.
Singapore’s Big Players Are Jumping In
In the Lion City, the big banks we all know—Citibank, DBS, you name it—are putting on their avatars and hopping into the metaverse. They’re not just exploring; they’re anchoring cryptocurrency at the heart of their futuristic playground, proving that crypto isn’t just for traders; it’s stepping into everyday life.
Every Small Step Counts
- More vendors online accept crypto—think coffee shops, fitness centers, and even pet grooming.
- Digital wallets get upgraded with real‑world safety checks, giving users more confidence.
- Legal frameworks start aligning, making it clear when you’re buying, selling, or spending.
- New tech like NFTs and smart contracts bring fresh ways to store and transfer value.
Each of these tiny advancements nudges us closer to a future where using a cryptocurrency is as normal as pulling out a card from your pocket.
Cryptocurrency: The New Mortgage Sidekick?
Every time a headline pops up about digital coins getting a slice of everyday life, it starts feeling less like a curiosity and more like a possibility. Picture this: you’re not only paying for a house but also growing a little digital fortune along the way.
Why It Could Be Game‑Changing
- Unconventional Income: Think of crypto as a side hustle that you don’t notice until it’s actually bloated your bank balance.
- Long‑Term Wealth: Instead of the usual “save and buy” mantra, you get to “hold and watch” while you’re chasing that dream home.
- Integration is Gaining Ground: More and more companies are signing onto the crypto wave, hinting we’re just about to hit the horizon of mainstream adoption.
Roadblocks on the Horizon
Sure, there’re some bumps ahead:
- Regulation: Governments are still figuring out how to keep crypto safe and sane.
- Volatility: A sudden drop in a coin’s value could put a dent in your mortgage plan.
- Awareness: Not everyone knows how or where to start, which slows the whole adoption curve.
Picture the Future
Imagine flipping the script on mortgage conversations. Instead of asking “Why use crypto?”, you might soon be saying, “Which coin can actually pay my mortgage?” It’s mind‑blowing—though we’re still in the brainstorming phase. The world is shifting and you might just be a step ahead on this exciting journey.
This piece was originally shared in Stacked Homes, under the “Home/Real Estate Credit” section.
