Aussie Programmer Refinances His Property Loan With DeFi In A Single Day, Following Red Tape From Banks

February 09, 2021, 7:00 AM AEST - 7 months ago

A software engineer has paid off his mortgage to the Commonwealth Bank of Australia and refinanced it through fixed-rate lending protocols, after finally having enough of getting nowhere with traditional banks.

Offsetting Loans

According to the software engineer, he decided to – quite literally – become his own lender after going around in circles with banks.

As a self-employed professional, he believes banks took advantage of this in order to deny him even a credit card for multiple years – especially seeing as the world is currently going through a period of economic turmoil.

In order to do so, the software engineer first paid off his loan in AUD – after which he borrowed USDC from Notional, using liquidity he already owned in order to avoid high fees.

He then added about $1 million in wrapped Bitcoin and Ethereum as collateral for a new 500,000 USDC loan.

Although the borrowing rates requested by Notional are around 6% some of that can be offset – provided you provide liquidity that you can earn money off of.

The newly (and self)made one man banking system stated that everything went much faster than it would have, had he stuck to traditional banks.

“I feel like I’m in full control of my situation. People should be all over this stuff. It felt like it would’ve taken months of applications, finding tax returns and bank statements for the bank to refinance me, but I was able to do it all in one day, under my own agency.”

Although the whole procedure took quite a bit of forethought, it paves the way for more transactions of the sort – AAVE, in particular, have hopped on the mortgage train recently following their marked increase in popularity.

Although this may be a one-off thing, it’s not improbable that in the future we will see plenty more early bird investors buying a new house due to a bitcoin faucet they used a decade ago.

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