More Australian home buyers using cryptocurrencies to save for a deposit

PHOTO: More Australian home buyers are using cryptocurrency to help save for a deposit. Photo: Marc Bruxelle

A growing number of home buyers are investing in cryptocurrencies like Bitcoin as a way to get into the booming property market.

Mortgage brokers across Sydney and Melbourne say buyers have used online “coins” either for a deposit or to pay off a large portion of their mortgages altogether.

Cryptocurrencies, also known as digital coins, can be sent from user to user without a central bank or single administrator using blockchain technology.

Though they have not been recognised as a mainstream currency in Australia, cryptos have grown in popularity and value in recent years, with one Bitcoin now worth just over $42,000.

There are now more than 4000 cryptocurrencies in existence, with millions of investors, including Australian home buyers, wanting to cash in on the next digital coin boom.

However, mortgage brokers warn that using digital currency to buy property in Australia is not without its risks.

Marvin Coleman Mortgage Choice Oakleigh in Melbourne said cryptocurrency markets were extremely volatile.