2 Nov 2021
4 min read
The home loan lending process takes a lot of time and necessitates the confirmation of documentation by several third parties. So each step in this process keeps adding time and money to the equation.
The possibilities for distributed ledger technology — blockchain to simplify and streamline mortgage loans is enormous. Finally, widespread adoption of DLT by lending institutions could significantly reduce costs while offering secure transaction data and computer-age settlement.
Blockchain technology constructed to cultivate trust through its non-biased and decentralised network of nodes substitutes costly banks and significantly reduces loan process time. Individuals and businesses can now begin receiving approval for a blockchain-based mortgage in minutes rather than paying outrageous service charges and having to wait up to 60 days.
Distributed ledger technology brings the capacity for storing various paper documents that must be transmitted between players onto a distributed system which is more solid than that of the current system. The data will be easily accessible, with recent steps along the way that take several weeks taking only seconds.
Prospective buyers, for instance, may have already been thoroughly vetted in terms of their loan condition. This data could be made accessible when an offer has been made on a property, shortening the process by several weeks.
This type of integrated data network would render some of the existing system's intermediaries obsolete.
Celsius Network is a blockchain-based lending and borrowing platform that lets people loan US dollars using cryptocurrency. Those searching for larger cash loans could use their Bitcoin, Ethereum, Litecoin, or Ripple tokens as leverage. The company's loans begin at 5% APR, and borrowers receive their cryptocurrency back after reaching the final payment.
Cred is a decentralised Ethereum-based lending forum that enables customers to access credit lines while expanding their cryptocurrency. Borrowers can obtain credit lines of up to $300,000 by utilising Ether or Bitcoin. Cred's Lend-Borrow Asset (LBA) token also assists users in lowering loan interest rates, participating in company governance, and increasing interest on the amount.
BlockFi is a lending platform that accepts cryptocurrencies as leverage. Do you need to fix your home, purchase a car, or simply go on holiday? Borrowers with Ether, Litecoin, or Bitcoin can receive a 12-month credit line.
The Liquid Mortgage portal helps lenders and borrowers instantly. Borrowers have access to every blockchain platform that allows them to organize and monitor payments while also encrypting their data. Lenders can use intelligent contracts and real-time transaction records. Liquid Mortgage, which launched in early 2018, seeks to increase its mortgage facilities to a broader audience.
You will receive daily interest on your virtual currency as well as EUR, GBP, and USD. With Nexo's crypto lines of credit, you can borrow more money using your bitcoin as leverage. The Nexo platform includes advanced security facilities that guarantee asset protection at all times. Over a decade of unrivalled FinTech success. Perfect risk analysis, data protection, and cutting-edge data security are all available. Users can earn interest on their crypto or fiat assets placed in the interest account by using their forum. For stablecoins, bitcoin rates of interest ranged from 5% to 10% and then were compensated out routinely.
Hodlnaut is a banking and finance platform that enables private investors to earn income on their cryptocurrency investments by loaning them to organisations. By stashing their digital currencies into a Hodlnaut Interest Account, members can receive attractive interest rates. Their current interest rates for BTC, ETH, DAI, USDC, and USDT are 6.2 per cent APY, 6.7 per cent APY, and 10.5 per cent APY, respectively.
The loan and borrowing industry for cryptocurrency is an essential sub-sector of crypto finance. Lenders on CoinDCX's platform can earn up to a 16.25 per cent annualized rate if they loan USDT to CoinDCX at critical writing. Crypto lending is a simple concept in which crypto HODLers earn additional income on their inactive cryptocurrencies. In contrast, margin traders loan cryptos for a fixed interest rate to clearly understand profiting from the margin money transfer.
FIC employs blockchain to assist broker-dealers in bond investments. Smart contracts are used on the blockchain-powered forum to enable instant settlement, remove delays, and standardise the bond-issuance method. The ledger environment also includes investors, financial institutions, credit bureaus, and brokers, allowing all parties to have a clear understanding of every bond.
The figure uses artificial intelligence and blockchain to help the participants access financial lines and housing loans. Figure's Home Equity Plus platform quickly links borrowers with housing loans. Borrowers complete a short survey, and once pre-qualified, the platform provides financing options and a video conference with a notary to start making all records official.
Unchained Capital provides cash loans to long-term cryptocurrency investors. Crypto owners can use their Bitcoin or Ether to obtain loans ranging from 3 to 60 months in length, with interest rates varying from 8% to 14%. Once a borrower has agreed to a loan, Unchained stores their cryptocurrency in a blockchain-secured vault that necessitates the authorization of the lender, corporation, and third-party key operative to prevent a central point of failure. Unchained Capital provides Bitcoin and Ethereum-leveraged loans for individual, small company, and estate use. Unchained, which went public in late 2017, already has earned $3 million in funding.
Government agencies developing open-access blockchains would be a blessing to mortgage lenders. Titles, actions, conveyance acts, zoning authorizations, and other property-related official records would be readily available, bringing a new degree of effectiveness to mortgage loans.
To wrap up, changes to any public property record would occur instantly, and everyone would be able to extract information as required. Given above are the top 10 blockchain mortgage companies that can be of great help.
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