Cryptocurrencies as home deposit

Any general questions you might have in regards to loans and finance.
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Otto Dargan
Mortgage Specialist
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Re: Cryptocurrencies as home deposit

Post by Otto Dargan »

Hi pedigree. Welcome to the forum.

Firstly I hope you've done well with your cryptocurrencies. In reply to your queries.
  • Yes, you can use this to pay your deposit, however, the vendor needs to accept cryptocurrencies. Otherwise, you need to sell them in return for AUD. However, some lenders are willing to be flexible and may accept cryptocurrency if you can provide a bigger deposit. We've seen people do it.
  • Technically cryptocurrencies are considered genuine savings if you have held the funds for more than 3 months. However, not all banks will accept it. We'd need evidence of when you bought the cryptocurrency as well as the current value now.
  • In most cases, banks accept the source of the deposit. In the worst case, you may need to sell them and put the cash in a bank account and then the banks will be ok with it.
Usually, for situations like this, we get [url=https://www.homeloanexperts.com.au/home-loan-documents/]all of your documents[url] together and then put a scenario forward to several lenders. Then we can apply with the right one and get you approved the first time around. It's a little more work but it gets results.

You can call us on 1300 889 743 for further assistance.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Cryptocurrencies as home deposit

Post by Otto Dargan »

Hi pedigree,

The Loan to Value Ratio (LVR) would depend on the purpose of your purchase. LVR is calculated by dividing the loan amount by the actual purchase price or valuation of the property, then multiplying it by 100.

If it’s an owner-occupied property, there are a few lenders who may lend 95% of the property value and 90% of the purchase price if it’s an investment property.

Also, please note that lenders usually charge you Lenders Mortgage Insurance (LMI) if you borrow more than 80% of the property value. It is an insurance that protects the lender in the event that you default on your home loan, not you as the borrower. It can be quite expensive the higher your LVR.

Please call us on 1300 889 743 or enquire online to speak to a specialist mortgage broker who can assist you to obtain a home loan.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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