Self-Repaying Mortgage vs. Traditional Mortgage
The choice between a Self-Repaying Mortgage (SRM) and a Traditional Mortgage is a choice between two entirely different financial eras. While traditional banking relies on your future labor (income) and permission from gatekeepers, the SRM leverages your "sound money" savings—Bitcoin, Gold, or Silver—to create a path toward true debt-free homeownership.
The Comparison: Breaking the Legacy Cycle
| Feature | Traditional Mortgage | Self-Repaying Mortgage (SRM) |
|---|---|---|
| Primary Qualification | Credit score & Income (DTI) | 1:1 Sound Money Collateral |
| Accepted Collateral | Home Equity Only | Bitcoin, Gold, or Silver |
| Approval Process | Invasive, 30–60 day underwriting | No Credit or Income Checks Required |
| Interest Rates | Fixed or Bank-Controlled Variable | Variable (as low as 3% APR via Loyalty) |
| Liquidation Risk | Foreclosure on Home | No Margin Calls or Liquidation Risk |
| Property Type | Various | U.S. Single-Family Residential Only |
Why the SRM is the Superior Path
1. Your Savings is Your Credit Score
Traditional mortgages are built on high-friction hurdles: credit checks, income verification, and debt-to-income (DTI) ratios. The SRM is different. Because the loan is fully collateralized (100% of the home purchase price), your financial history is irrelevant. Your savings speaks for itself, removing the need for invasive paperwork or gatekeepers.
2. Freedom from the Monthly Salary "Trap"
In the legacy system, if you stop working, you risk losing your home. The SRM flips this dynamic. By over-collateralizing your mortgage, you gain access to the cheapest cost of capital in the world (as low as 3% APR). While you make payments in your preferred medium—USD, USDC, prUSD, or BTC—the goal is to let your asset’s growth retire your mortgage decades early.
3. Retain 100% of Your Upside
When you use a traditional mortgage down payment, you often sell an appreciating asset to buy a slower-moving one (Real Estate). With an SRM, you never sell. Whether you use Bitcoin, Gold, or Silver, you keep 100% of your asset's upside during the entire 30-year term. Upon final payment, 100% of your pristine collateral is returned to your self-custody.
4. Dynamic Rates Driven by Loyalty
Unlike fixed-rate bank loans, SRM rates are influenced by your commitment to the Peoples Reserve ecosystem. By reaching the Diamond Loyalty Level through PRN tokens, you can unlock rates as low as 3% APR.
- Volatility Adjustments: Over 30-day periods, your rate may adjust based on collateral price movement (with a maximum increase of 5% and a maximum decrease of 4% from your starting APR).
- No Penalties: You retain the flexibility to pay off your mortgage at any time with zero prepayment penalties.
5. Zero Liquidation Risk
Peoples Reserve utilizes a unique dual-collateralization model where both the property title and your sound money collateral secure the loan. Your assets are held in a bankruptcy-remote Special Purpose Vehicle (SPV) with BitGo. This structure ensures there are no margin calls, protecting you from market volatility while providing on-chain proof of reserves.