The scope of mortgage market transactions is set to undergo a major revolution. This follows the launch of a Crypto-based mortgage facility by Milo. The leading fintech firm debuted its solution by financing a duplex in Miami in March 2022. With a repayment period of 30 years, Milo offers buyers the flexibility to repay installments that are consistent with their financial situation.
Businesses worldwide have rapidly embraced crypto. With the volatilities of the conventional cash due to the galloping inflation, demand is only set for a steep rise. The increase in cryptocurrency preference will be driven by the stability aspect that digital tokens proffer.
For a few years, homebuyers have been buying homes using cryptocurrency in markets like Sydney, Australia, New York, USA, and other global centers of excellence. In most transactions, buyers have been paying upfront from their personal wallets.
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The Crypto Mortgage Market Is Untapped
With the skepticism against Cryptocurrencies being at an all-time high, the adoption of Cryptocurrencies is still lagging. The US Securities and Exchange commission’s failure to give concise direction is also impeding the adoption, but this is set to change with time.
Milo is optimistic that the demand for Crypto-based loans will surge in the mid-term and long term. Already, the firm is expanding its operational capacity by doubling its personnel to 100. Additionally, the company has leased a bigger offers space in anticipation of increased demand for its services.
Some of the features of the Milo Mortgage Include:
– A high loan cap of $5 million or a 30-year loan term.
– 100% mortgage financing; hence no deposits are required.
– Low-interest rates range from 3.95% to 5.95%.
– Acceptance of Collateral such as ETH, BTC, and Stablecoin.
– Secure transactions from trusted Crypto wallets-Coinbase and Gemini.
The application is online, and all that buyers are required to do is to stake their collateral and access the loan facility. Getting a pre-approval letter or loan approval is instant. This aspect makes the process convenient and ideal, especially in hot real-estate markets such as Miami.
Competition Is Set To Rise
Milo will not be the sole provider of Crypto home loan financing; XBTO – a Miami-based crypto financier, is set to enter the mortgage market. According to the head of markets for XBTO – Joe Haggenmiller, the celebrated fintech leader, will be targeting crypto hodlers who cannot seamlessly purchase property in the domestic market due to constraints in international investments.
Just like Milo, XBTO also projects an avalanche of applications. The positivity is underpinned by the huge untapped market niche of unserved and overlooked Cryptocurrency owners who have limited choices for spending.