Can You Use Crypto to Buy a Home in Canada?
Crypto is everywhere. From Bitcoin to Ethereum, Canadians are holding more digital assets than ever. But when it comes to buying a home, lenders are still catching up.
So, can you actually use crypto for your mortgage down payment? The short answer: yes, but not directly. You’ll need to convert it to Canadian dollars and meet strict bank requirements. And if you’re hoping to use crypto as collateral, the rules get even trickier.
Let’s break this down in two parts: first the simple basics, then the regulations shaping how crypto and mortgages interact in Canada.
Crypto and Mortgages: The Basics
Can you use crypto as a down payment?
Yes… but you can’t just show up with Bitcoin in your digital wallet. Lenders only accept money that’s sitting in a Canadian bank account, in Canadian dollars.
Here’s what that means in practice:
Convert to CAD – Sell your crypto and move the funds into your bank account.
Season it for 90 days – Most lenders want to see the money sitting there for at least 90 days. This shows it’s your savings, not a last-minute transfer.
Document everything – Keep the records of your sale, transfer, and deposit. Lenders need a clear paper trail for anti-money laundering (AML) compliance.
If you skip these steps, most banks will reject your mortgage application, even if you have enough money.
What about crypto-backed mortgages?
Some platforms will let you borrow against your crypto without selling it. For example, you might pledge $50,000 worth of Bitcoin to get a $25,000 loan in Canadian dollars.
Sounds great, but here are the catches:
If your crypto value drops, you might get a margin call or even lose your collateral.
These loans aren’t mainstream - most big banks won’t touch them.
They can trigger big risks if you don’t understand the fine print.
For most Canadians, the simpler path is still selling your crypto and letting the cash season in your bank account - and what I would recommend.
The easiest workaround
Instead of direct crypto, consider crypto ETFs. They’re held in regular accounts like RRSPs and TFSAs, and lenders recognize them as traditional investments. That makes them far easier to use in a mortgage application.
Crypto Mortgage Regulations (OSFI, CRA, Compliance)
For readers who want the technical side, here’s where things stand:
CRA rules
Selling crypto is taxable. The CRA treats crypto like a commodity. If you sell Bitcoin to fund your down payment, that’s a taxable capital gain.
Borrowing against crypto is not. Loans secured against your crypto don’t trigger taxes - well, at least under current rules.
OSFI regulations
Canada’s banking regulator, OSFI, released a new Crypto-Asset Guideline in February 2025. It took effect at the end of 2025 and forces banks, credit unions, and trust companies to classify crypto assets into risk groups.
In plain English:
Stablecoins and tokenized government bonds may be treated more like cash.
Bitcoin, Ethereum, and other volatile coins fall into high-risk categories, meaning banks must hold more capital if they accept them.
This makes banks very cautious. Even if you’ve already sold your crypto and converted it to dollars, underwriters often flag it as “crypto-sourced” and demand extra documentation.
Why are lenders so strict?
Because crypto is:
Volatile – Prices can swing 20% in a day.
Complex – Banks need proof of where it came from (Anti-Money Laundering rules).
Unregulated – Rules are evolving, and banks would rather be safe than sorry.
Until OSFI rules are fully absorbed, most banks will continue moving slowly, which is why working with a broker who knows the crypto space is essential.
Key Takeaways
You can use crypto to buy a home, but only after converting it to CAD and letting it season in your account.
Keep detailed records. Every sale, transfer, and deposit may be reviewed by your lender.
Expect to pay capital gains tax on profits when you sell.
If you want fewer headaches, consider crypto ETFs, they’re easier for lenders to verify.
Regulations are evolving. OSFI’s 2025 guideline will shape how quickly lenders adopt crypto.
So… What’s next?
If you’ve built wealth in crypto and want to use it toward homeownership, don’t wait until the last minute. Talk to a broker who understands both mortgages and crypto compliance. At VeloMortgage.ca, we help you turn digital wealth into real-world property the right way.
As the market changes and adapts, keep an eye on future blog posts and updates on how Crypto is being leveraged in the real world, and how regulators and lenders adapt.
Book a call with me today to discuss more about how this applies to your Crypto investments.
Jeff Dinsmore
Mortgage Broker
FSRA # 10315
VeloMortgage.ca
TMG - The Mortgage Group
Further Reading:
Canadian Mortgage Trends - Can I use Cryptocurrency to get a mortgage?
Coinpedia - Crypto Regulations in Canada 2025
NASDAQ - Canada’s OSFI Releases New Crypto-Asset Guideline: What It Means for Institutions