The Bitcoin Self-Repaying Mortgage (SRM) is part of the Peoples Reserve Bitcoin Powered Mortgage (BPM) line. It is designed to evolve alongside your financial journey, using Bitcoin’s long-term growth and the Home Equity Contribution (HEC) system to reduce — and in many cases, fully repay — your mortgage debt over time.
Why We Call It a Self-Repaying Mortgage
The SRM is structured to repay itself through two powerful mechanisms:
1. Growth of Bitcoin Collateral
- When you post Bitcoin as collateral, its long-term growth is expected to outpace your mortgage debt.
- As Bitcoin appreciates, your collateral-to-loan value ratio improves, lowering the interest rate applied to your mortgage.
- This means your monthly payments naturally shrink over time, reducing the overall cost of homeownership.
2. Home Equity Contribution (HEC)
- By claiming your property in the Peoples Reserve ecosystem, you activate a Home Equity Contribution.
- The HEC generates monthly cash flow from RWA Funding Reserves.
- This cash flow is applied directly to your mortgage, further lowering your out-of-pocket costs each month.
- Your Loyalty Level determines the strength of this benefit — higher PRN holders receive more powerful repayment advantages.
What Makes the SRM Different
The SRM is not just an upgrade to traditional mortgages — it’s a complete reinvention.
- Built for the Digital Economy: Uses Bitcoin as collateral and links your property to RWA reserves.
- Dynamic Interest Rates: Adjusts with market conditions, lowering rates as your collateral ratio improves.
- No Liquidation Risk: Unlike other crypto-backed loans, price volatility does not threaten your homeownership.
- Aligned Incentives: Instead of banks profiting from your debt, you, your property, and your loyalty generate value together.
A Safer, Smarter Way to Own Your Home
The Self-Repaying Mortgage offers what traditional lenders cannot:
- Security: Keep ownership of your home without fear of forced liquidation.
- Relief: Watch your monthly payments decrease as Bitcoin appreciates and HEC adds contributions.
- Rewards: Loyalty Level bonuses amplify your repayment advantage, making your mortgage lighter over time.
Why It Matters
Traditional mortgages lock you into decades of fixed payments. The SRM flips that model by letting your assets work for you:
- Your Bitcoin collateral grows in value over time.
- Your property generates additional contributions via HEC.
- Your loyalty level boosts repayment benefits.
Together, these forces create a mortgage that actively repays itself instead of weighing you down.
Learn More
Watch this video featuring CJ Konstantinos as he explains how the SRM model is designed to withstand even severe liquidation events: