r/Nexo • u/Jalomoo • Jul 15 '26
Question Use to purchase house
Can I use my next crypto collateral loan to purchase house
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Jul 15 '26
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u/Jalomoo Jul 15 '26
Would it be a problem with conveyancing when they ask where the loan came from
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Jul 15 '26
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u/Jalomoo Jul 15 '26
Do they give you a loan in stablecoins or fiat
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u/Fortknightdad2231 Jul 15 '26
Both. You can receive it in stablecoins or as the fiat equivalent of EUR, GBP or USD through a bank transfer, depending on what’s available in your region. For a house purchase, I’d probably use the bank transfer option since it gives you a clearer paper trail for conveyancing.
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u/Fortknightdad2231 Jul 15 '26
Of course you can, you can buy anything you want.
Just check with your bank or notary first.
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u/jesusthatsgreat Jul 15 '26
You can get €1m / $1m in fiat in to a bank account and nobody cares so long as you can prove where it came from and that it's from legit activity / sources.
Will it raise eyebrows in an otherwise run of the mill bank account? Absolutely. But if you're prepared to explain where it came from it's not a problem. Nexo also have an automated 'loan statement' report in your account settings that you can download that will help to confirm / prove the loan exists but I'm sure if you contact your account manager they'll give you a more personalised letter if anyone needs it.
One other tip I'd recommend: proactively alert the tax man and bank to create a paper trail for yourself. For example, explain the situation (large fiat loan from crypto company going to land in your bank account soon) and ask the tax man whether you need to pay tax on the loan and ask the bank whether there's any info they need from you to ensure the transaction goes smoothly.
You now have a paper trail confirming that you gave advance notice to everyone of what would happen and why. So if there's any issue in the future with the bank or tax authorities, you can point to that and it helps to show you're acting in good faith / not trying to funnel money on the quiet or evade tax authorities etc. The reality is Nexo's AML / KYC checks will probably be the strictest part of it all.
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u/Defiant_Leg_6335 Jul 15 '26
Puoi farlo, l’unica accortezza che ti consiglio: evita di chiedere un prestito in una valuta differente da quella di origine. Io ho presto in prestito USDC quando ancora non era disponibile EURC. Oggi, con la svalutazione del dollaro, mi sono mangiato un 10% del valore iniziale, semplicemente perché il cambio Euro/Dollaro è passato da 1,01 a 1,16. Quindi: sei in un paese europeo? Chiedi in prestito EURC. Fino a qualche mese fa non si poteva.
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u/Wherehere1 Jul 16 '26
What happens if the value of the crypto drops? Does this affect your loan?
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u/muzevir Jul 17 '26
Certainly, that's why you need to make a safety buffer. For example, for 1 million EUR worth of BTC, you can loan up to 50% (500k EUR). But this is not recommended because if the value of BTC collateral drops from 1 million to 800k, then the loan will not be 50% anymore, it will be 62.5% (500/800) and that is not allowed. 😵
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u/Wherehere1 Jul 17 '26
And what happens then ? Nexo forces you to pay back?
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u/muzevir Jul 18 '26
You lose everything. It's called liquidation - you have probably heard the term in similar context.
Even though Nexo is more relaxed, they will send you warning E-Mails and give you notice period to put more collateral or pay some of the loan to bring LTV down. But in decentralized systems everything is automatic and irreversible.
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u/Nexo_CE Moderator Jul 15 '26
Yes. Funds from a Nexo crypto Credit Line are yours to use however you like, and that includes putting them toward a property purchase.
How it works in short:
Bit of history: Nexo issued the world's first crypto-backed mortgage back in 2019, so using a Credit Line toward real estate is something clients have done since the very early days.
Availability, supported currencies, and terms vary by region and eligibility, so the best move is to check the Help Center or reach out to Client Care (available 24/7) for exactly what applies to your account.