Last updated: July 2026 · Reviewed by John Pierre Saliba, Director and Mortgage Broker, MFAA Accredited
Can You Use Home Equity to Buy Cryptocurrency?
Technically possible with some lenders, but very difficult, and for good reason. Most mainstream lenders decline equity release specifically for cryptocurrency purchases. The combination of property-secured debt and highly volatile assets creates a risk profile that most responsible lenders won't support. This guide explains exactly what's possible, what the risks are, and what alternatives exist.
I'm going to be direct about this one: I rarely recommend using home equity to buy crypto. The risk asymmetry is severe, your home is secured, fixed debt at 6–7%; crypto is uncorrelated, highly volatile, and has no income yield. If crypto drops 60% (which has happened multiple times), you still owe the full equity loan. I've seen clients lose significant equity this way. That said, I'll explain exactly what the lending landscape looks like so you can make an informed decision.
What Lenders Actually Allow
- Major banks (CBA, Westpac, NAB): Generally decline equity release specifically for cryptocurrency purchases
- Non-bank lenders: Some will approve equity release without specifying the investment type, particularly if the stated purpose is "investment" without specifying crypto
- Specialist lenders: A small number explicitly allow crypto purchases from equity
- Line of credit: Some lenders' line of credit products don't restrict purpose, crypto purchases are technically possible but contrary to the spirit of the product
Why Most Lenders Decline
- Crypto is unregulated and provides no income yield, failing the "income-producing investment" test
- Extreme volatility creates lender risk, if the borrower loses significantly and can't service the loan, the lender's security (the home) must cover it
- Reputational risk for the lender if the strategy goes badly for the borrower
- Responsible lending obligations, lenders are required to assess whether a product is suitable for the borrower
The Risk Calculation
- You borrow $100,000 against your home at 6.49% IO = $541/month in interest
- Crypto value drops 60% (Bitcoin has done this twice since 2020): $100,000 becomes $40,000
- You still owe $100,000 to the lender
- Your net position: -$60,000 in crypto losses + ongoing interest payments on the full $100,000
- Your home equity is reduced by $100,000 regardless of crypto performance
Alternatives Worth Considering
- Invest equity in diversified shares (ETFs): Income-producing, deductible interest, liquid, regulated
- Buy an investment property: Leveraged, income-producing, deductible, historically appreciating in Sydney
- Use discretionary cash (not home equity): If you want crypto exposure, using money you can afford to lose entirely is a very different risk profile to using home equity
- Listed crypto ETFs: Regulated exposure to crypto price without the custody and technical risks, more lender-friendly if using equity for "investment in ASX-listed securities"
