Buying a House with Bitcoin – Can It Be Done in NZ?
With cryptocurrencies becoming increasingly mainstream, it’s no surprise that property buyers are wondering whether they can use Bitcoin or other digital currencies to buy a home. It’s a conversation that’s coming up more often in mortgage meetings, and while it’s an exciting prospect, the current rules make things tricky. Let’s explore the key questions being asked—and where the hurdles lie.
Can You Buy a House with Bitcoin or Other Cryptocurrencies?
In theory, yes. A house sale only needs a willing buyer and a willing seller. If both parties agree to settle in Bitcoin (or another crypto), the deal could proceed on paper. But in practice, a property transaction involves more than just two individuals. There are councils, legal requirements, anti-money laundering rules, banks, and lawyers involved—none of whom are currently equipped to operate in crypto.
Why NZ Councils and Lawyers Need Dollar Figures
New Zealand councils rely on the reported sale price of properties to set rates and maintain accurate valuations (CVs). That sale price must be disclosed in New Zealand dollars. While it’s possible to calculate the NZD equivalent of Bitcoin on the day of settlement, it adds unnecessary complexity—and volatility—to the process.
More critically, your lawyer is required to process funds through a trust account. At present, law firms do not hold or process cryptocurrency in trust. This makes it near impossible to complete a legal settlement unless the Bitcoin is first converted to NZD. Many lawyers would also be reluctant to proceed with a crypto-only transaction due to compliance risks.
Anti-Money Laundering Rules Make Crypto a Red Flag
New Zealand has strict anti-money laundering (AML) laws. These require multiple layers of identity verification, financial transparency, and traceable transactions. Cryptocurrencies, by their very design, exist outside of centralised control—making them difficult to reconcile with AML requirements. Attempting to purchase a home in crypto could see your transaction heavily scrutinised, delayed, or outright blocked by compliance teams.
Have Any NZ Homes Been Sold for Bitcoin?
There have been listings where vendors expressed a willingness to accept Bitcoin. One example from 2018 was a $1.895 million property in Auckland, marketed as open to crypto offers. However, records show the property did not sell at that time, and its last recorded sale was over a decade earlier. So while crypto-themed listings may grab headlines, they haven’t translated into actual sales—yet.
Can I Use Bitcoin as My Deposit to Get a Mortgage?
This is where the rules are especially firm. New Zealand banks will only accept New Zealand dollars for mortgage lending. Bitcoin is not legal tender in NZ, and cannot be used to fund a mortgage directly. If you’ve built up wealth in crypto and want to use it for a deposit, you’ll need to convert it to NZD, move it into your bank account, and show clear documentation of the transaction. Only then can it be considered part of your usable deposit for a mortgage application.
Is It Wise to Buy Property Using Bitcoin?
Volatility is the core challenge. Bitcoin’s price can swing by tens of thousands of dollars in just a few days. For example, in August 2021, the NZD price of one Bitcoin jumped from around $49,000 to nearly $70,000—a rise of over 40% in a single month. Great if you’re holding Bitcoin, but terrible if you agreed to a fixed Bitcoin amount for your house weeks earlier.
Conversely, if a vendor accepts Bitcoin when it’s near a peak and the value crashes afterwards—as it has done in the past—they may find themselves significantly worse off than if they had sold in NZD. Property may fluctuate in value, but not nearly as much as Bitcoin.
Can You Get Around This with a Hybrid Sale?
You could, in theory, negotiate a hybrid arrangement where a portion is paid in NZD and the rest in crypto. But again, the NZD portion would need to cover all lender requirements (if a mortgage is involved), and the crypto portion would have to be carefully managed between buyer and seller. It would also still raise flags with the AML regime and require creative lawyering, which most firms would be reluctant to take on.
So, Can You Buy a House in NZ with Bitcoin?
Not easily—and not officially. You might find a vendor open to it, but even then, you'll hit major roadblocks with AML checks, legal processes, and mortgage approval. If you want to use Bitcoin gains to buy property, your best bet is to convert your crypto to NZD through a recognised exchange, document the process carefully, and proceed with a traditional purchase.
Cryptocurrency might one day become a mainstream payment method for major transactions, but for now, in the world of New Zealand real estate, it’s still very much an outsider.
Mortgage Lab’s mission is to be the digital town square for financial decision-makers to gain knowledge about their current and future mortgage. Follow us on Facebook and LinkedIn or subscribe to our newsletter to be notified of our latest articles.