Frequently Asked Questions

A Crypto Mortgage is a financial instrument that allows individuals to leverage their cryptocurrency holdings as collateral to secure a loan. It combines the power of blockchain technology and traditional lending, enabling borrowers to access liquidity while retaining ownership of their digital assets.

To obtain a crypto mortgage, borrowers lock their cryptocurrency collateral into a secure smart contract. The value of the collateral determines the loan amount they can receive. Once the loan is disbursed, borrowers make regular repayments, including principal and interest, until the loan is fully repaid. Upon completion, the collateral is released back to the borrower.

The specific cryptocurrencies accepted as collateral may vary depending on the platform. However, popular cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and others are commonly accepted. It's important to check with the lender to ensure that your desired cryptocurrency is eligible as collateral.

Yes, once the loan is disbursed, you have the freedom to use the funds for any purpose you desire. Whether you're looking to purchase real estate, invest in a business, or meet personal financial needs, crypto mortgages offer flexibility and versatility.

Unlike traditional mortgages, crypto mortgages do not typically require extensive credit checks. The loan amount is primarily determined by the value of the collateral. This means that borrowers with limited credit history or low credit scores can still access financing using their cryptocurrency holdings.

Yes, the collateral you provide is stored in a secure smart contract, ensuring its safety throughout the loan term. Smart contracts are built on blockchain technology, providing transparency and security. Your collateral will be released back to you once the loan is fully repaid, as per the agreed-upon terms.

The approval process for a Crypto Mortgage can vary depending on the platform and lender. However, compared to traditional mortgages, crypto mortgages often have a faster and more streamlined approval process. With fewer paperwork requirements and credit checks, you can expect a quicker turnaround time.

The loan-to-value (LTV) ratio determines the maximum loan amount you can receive based on the value of your collateral. If the value of your collateral changes significantly during the loan term, it may impact the LTV ratio. In some cases, you may be required to provide additional collateral or make adjustments to the loan terms to maintain the required ratio.

Yes, one of the advantages of crypto mortgages is their global accessibility. As long as you have a compatible cryptocurrency and meet the eligibility criteria set by the lender, you can access crypto mortgages from anywhere in the world. It eliminates geographical restrictions and opens up opportunities for individuals globally.

To get started with crypto mortgages, you can contact a Squarly specialist. We are experts in crypto mortgages and will guide you through the application process, collateral evaluation, and loan terms.