Selling your Bitcoin to buy a home hurts twice: you lose upside, and you trigger tax.

But across both the United States and Canada, thousands of investors are now funding down payments by borrowing against their crypto instead of selling it.

This strategy is:

• Tax-efficient
• Mortgage-friendly
• Fast
• And preserves long-term BTC upside

This is the most complete and accurate guide for U.S. and Canadian homebuyers who want to leverage Bitcoin for their next real-estate investment.

Can you use Bitcoin for a down payment in the U.S. or Canada?

Short answer: Yes.

But not directly.

Neither U.S. nor Canadian mortgage lenders accept BTC or ETH as a down payment in crypto form.

But they do accept fiat that originated from a crypto-backed loan, as long as:

🇺🇸 U.S. requirements

• Funds are seasoned for 30–60 days (varies by lender)
• You can document the loan agreement
• Funds did not come from an unverified or offshore entity
• Loan is NOT disguised as a gift (Fannie/Freddie matter here)

🇨🇦 Canadian requirements

• Funds sit in your bank account for 30+ days (again, varies by lender)
• You provide an official loan agreement
• The lender is legitimate and traceable (regulated, transparent) ‍
• Down payment isn’t classified as an unverifiable source of funds by the bank

So yes: crypto-backed loans convert your BTC into mortgage-ready cash. And the best part? You don’t need to sell your Bitcoin.

Why borrowing against Bitcoin beats selling it (U.S. and Canada)

Selling BTC

• Triggers tax (IRS and CRA both treat crypto as property)
• Reduces or eliminates upside
• Interrupts long-term wealth compounding
• Creates the psychological “I sold too early” problem

Borrowing against BTC

• No taxable event at origination (U.S. and Canada)
• Keeps full BTC upside exposure
• Unlocks cash for down payments or renovations
• Lets you repay the loan using fiat income
• Keeps your investment thesis intact

Want to learn the mechanics of borrowing against your Bitcoin? Check out the guide.

How crypto-backed loans work (for both U.S. and Canada)

Crypto-backed loans let you pledge Bitcoin or Ethereum as collateral to borrow fiat or stablecoins, which are easy to exchange for fiat.

Here’s a simple breakdown of how we do it at APX Lending.

1. Request your loan

Your borrowing amount depends on two things:

1. How much crypto you have
2. What your loan-to-value (LTV) ratio is

Once you’ve determined these two things, you’ll set your loan terms (3 – 60 months). Then, submit your request.

2. Complete ID verification

ID verification is a compliance requirement for us. It’s done to prevent illegal activities like money laundering. The process is simple and typically takes five minutes for approval. You provide a valid photo ID from your place of residence, a liveness check, and we handle the rest.  

3. Post BTC/ETH into segregated custody

At APX Lending, collateral is stored in segregated BitGo Trust wallets—NOT commingled or rehypothecated.

4. APX Lending issues stablecoin and fiat loans

• U.S. residents: USDC (25,000 USDC loan minimum)
• Canadian residents: CAD (10,000 CAD loan minimum)

5. Funds land in your bank account

These become seasoned, traceable down payment funds.

6. You use the funds for real estate

Home purchase, investment property, renovation, bridge financing, etc.

How much can you borrow against Bitcoin? (U.S. and Canada)

Your borrowing power in both markets is largely determined by your loan-to-value (LTV) ratio.

Example:

• BTC price: $90,000 CAD / $65,000 USD
• Collateral: 2 BTC
• Collateral value: $180,000 CAD / $130,000 USD
• LTV: 50%
• Borrow amount: $90,000 CAD / $65,000 USD

In most cases, lenders will give you a loan worth 50% of the collateral you’ve posted. Some, like APX, have origination LTVs as high as 60%—something to consider when shopping platforms.

Why homebuyers use crypto-backed loans (U.S. + Canada)

1. Avoid triggering capital gains

Both the IRS and CRA treat crypto as property.

Selling BTC → taxable event
Borrowing → not taxable event

If you're unclear on how to navigate crypto-backed loans and taxes, here's everything you need to know.

2. Preserve long-term Bitcoin upside

If Bitcoin doubles during your mortgage period, you keep 100% of the appreciation.

Most investors prefer to borrow, not sell.

3. Faster than traditional home equity products

• No credit checks
• No underwriting delays
• Funding often happens within 24 hours

This is especially valuable in U.S. bidding wars and Canadian tight inventory markets where you need to prove verified funds upfront.

4. Acceptable to mortgage lenders (with documentation)

🇺🇸 U.S. mortgage guidelines

Most lenders allow borrowed funds if:

• Documented with a loan agreement
• Not from a “soft gift”
• Funds are seasoned
• Transaction path is clear

🇨🇦 Canadian mortgage guidelines

Accepted if:

• Loan documentation is provided
• Funds are seasoned 30+ days
• Source is a legitimate financial entity
• Not classified as unverifiable funds

APX Lending provides documentation packages for both jurisdictions.

Unlock liquidity without selling your crypto

Read the guide

Risks to understand (and how APX mitigates them)

1. Liquidation risk

If BTC drops, LTV rises. If it rises too far, liquidation may occur. We've got guidance (and reassurance) for those who might be wary of LTVs.

APX reduces this risk using:

• High liquidation thresholds (90%, a market high)
• Real-time alerts
• Top-up options
• Segregated custody (platform failure risk removed)

2. Interest costs

Borrowing is a trade-off: interest vs preserved upside. Another way to think about it: Does the potential upside of your crypto outweigh the cost of capital for your loan? If so, then it’s definitely worth exploring.  

Bitcoin Monthly Return is just one tool that allows you to predict BTC returns.

3. Platform risk (this is where APX is unique)

Many crypto lenders have collapsed due to rehypothecation and unsecured lending.

APX is one of the only platforms in North America with:

• Segregated BitGo Trust custody ‍
• No rehypothecation ever ‍
• FINTRAC and FinCEN registration ‍
• SOC 2 controls ‍
• CSA approval

This matters to homebuyers and mortgage lenders evaluating document legitimacy.

Real buyer example (composite)

Meet “Sarah” (California)

• Long-term BTC holder
• Wanted a $100K down payment
• Selling would trigger ~$27K tax
• Borrowed instead

She posted 2.5 BTC, borrowed $100K USD, and secured her home without touching her BTC stack.

Meet “David” (Ontario)

• Buying a $1.1M Toronto condo
• Needed $200K down payment
• Didn’t want to sell 7.2 BTC

He borrowed CAD using collateral and kept his long-term Bitcoin thesis intact.

Investment properties: Huge opportunity (U.S. and Canada)

Crypto-backed borrowing helps investors:

• Acquire rentals
• Buy pre-construction units
• Do BRRRR strategies
• Bridge finance before sale closes
• Invest in land or multi-family deals

This is extremely popular among high-net-worth and mid-market investors. But it’s also an approach many retailer borrows are using.

Many of our customers leverage their BTC and ETH for real estate:

• 13% for purchasing a first home
• 12% for making home improvements
• 11% for investing in real estate

This is not a niche strategy. It's mainstream.

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Step-by-step guide: Using Bitcoin for a down payment (U.S. and Canada)

1. Get a crypto loan quote
   

2. Choose your LTV (Lower LTV = safer through market volatility)

3. Deposit BTC/ETH into segregated custody

4. Receive USDC or CAD into your bank account

5. Season funds as required (30–60 days)

6. Provide documentation to your mortgage lender

7. Make your down payment

8. Repay loan over time or strategically

FAQs