Crypto and Mortgages

Hi, I’m relatively new to the course. I’ve extensive background in residential mortgages, curious to hear how you see blockchain disrupting the mortgage industry?

DeFi and using crypto as collateral for loans would be a good place to start your research.

You can get cheaper borrowing rates if you’re backing your loan with a high % of crypto. May turn out cheaper than borrowing from a bank and would allow you to keep your crypto in crypto (for [hopefully] capital appreciation during the loan period). Better that than liquidating your crypto position to become house poor.

FaierPlay, thanks for your response. I see the crypto-currancy as an acceptable form of down payment in the future. Could also be recognized as an asset to bolster networth. I think the more near term use will be the use of smart contract to close loans, thereby eliminating the need for closing agents.
There will be changes that I cant foresee at the moment.


As others have said, I do not believe there are many projects now actually participating in lending for real estate, cars, etc. I have heard some wild speculation in recent past that perhaps you will be able to stake the equity in your house on the blockchain without actually providing it as collateral but I believe we are far off from that.

Zar, I think in the near term blockchain will eliminate the need for closing agents and attorneys. But in terms of financing real estate with crypto-currency, that will take longer to gain broader appeal. If you come across some literature regarding staking the equity on the blockchain, I would love to read it.

There aren’t many I’ve seen, but here’s an example of a company that is tokenizing their real estate, which you can invest in.

FaierPlay, Tokenized ownership in real estate, interesting indeed!! thanks a bunch!