With Bitcoin, Ethereum, and other digital assets climbing in value again, some Canadians are wondering: Can I use my crypto to buy a home?

The short answer is yes, but it’s complicated. While cryptocurrency has made headlines as “digital gold,” Canadian lenders remain justifiably cautious. Between tax rules, anti-money laundering (AML) laws, and lender restrictions, turning crypto into a down payment isn’t nearly as straightforward as cashing out a savings account.

What Is a Crypto Mortgage?

In Canada, there are two main ways crypto could play into a mortgage:

1. Crypto-funded mortgage – You sell your crypto, convert it into Canadian dollars, and use that as your down payment. This is the most common route, but selling crypto will trigger capital gains taxes. It also isn’t generally an allowed source for down payment but we will talk about that next.

2. Crypto-backed mortgage – Instead of selling, you pledge your crypto as collateral. This avoids a taxable event, but so far, we haven’t seen any of the Canadian banks or mainstream lenders jump on the ship. The anti money laundering AML rules and legislation is likely to blame.

The 90-Day Rule: Why Your Crypto Needs to “Season”

If you’re working with crypto, you won’t be the first Calgarian who cashed out their Bitcoin or Ethereum and transferred the funds into their bank account. The key is to leave the money there for at least 90 days.

Why? AML laws require lenders to trace the full history of down payment funds. Even if you can show the sale of your crypto, most banks will not approve the mortgage unless those funds have been sitting in your Canadian account for three months.

Without this seasoning period, applications often get flagged, delayed, or declined.

Case Study: When Crypto Delayed a Closing

There have been situations where buyers had their approval pulled just before closing because their down payment originated from crypto wallets. In one case, the only solution was to place them with a willing private lender at higher rates. The buyers saved their $250,000 deposit, but it was a stressful experience that could have been avoided with earlier planning.

In cases like this, there are higher interest rates for the private money as well as lender and broker fees. It is an expensive solution. It can be short-lived, but most lenders doing a refinance of a property purchased in the previous 12 months will want to verify down payment so, it takes about a year to get out of this more expensive loan.

A Safer Alternative: Crypto EFTs

For Canadians who want exposure to digital assets and an easier mortgage path, crypto ETFs (Exchange Traded Funds) may be the answer. These are investment funds that hold Bitcoin or Ethereum on your behalf and are traded through mainstream brokerages like RBC or Questrade.

Because ETFs are held in registered accounts (like TFSAs or RRSPs) and reported through traditional financial channels, lenders are much more comfortable with them. Popular options include:

• BTCC (Purpose Bitcoin ETF) – Canada’s first Bitcoin ETF

• ETHH (Purpose Ethereum ETF) – Direct Ethereum exposure

• FBTC (Fidelity Advantage Bitcoin ETF)– Designed for registered plans

CRA Rules on Crypto and Mortgages

Under CRA guidelines, cryptocurrency is treated as a commodity. That means:

• Selling crypto to fund a down payment is a taxable event. You must report 50% of the capital gain as income.

• Borrowing against crypto (through a loan) does not trigger tax, but it comes with risks like margin calls if the value drops.

Risks to Consider

Before planning to buy your first home with crypto, keep these risks in mind:

• Price volatility – A sudden dip in crypto value could derail your plans.

• Lender restrictions – Many banks still refuse crypto-related down payments. So plan in advance to have the funds in your bank account for more than 90 days before buying.

• Platform risk – Some crypto lending platforms have collapsed.

• Documentation – Every transfer, exchange, and deposit must be paper-trailed.

Consideration for Buyers

Yes, you can use crypto for a mortgage in Canada—but only if you plan carefully. For most first-time homebuyers in, the easiest way is still to:

✅ Convert your crypto into Canadian dollars well ahead of time
✅ Let the funds season in a bank account for 90+ days
✅ Keep clear records of every step
✅ Work with a mortgage broker who understands crypto and knows which lenders will consider it

Buying your first home is exciting—and if crypto is part of your financial picture, getting the right advice early can save you from stressful surprises at closing. Thinking about using your crypto for a home purchase? Let’s talk through your options and build a plan that works.