In a market where interest rates are rising rapidly and Dutch banks are becoming more selective, investors and developers may face unpleasant surprises. It is no longer self-evident that a bank will extend a loan.
Foreign banks within our international network, now often offer lower interest rates and much longer terms.
The differences quickly become apparent – as interest rates rise, interest-only financing can help meet ESG and cover costs.
It is therefore often more beneficial to take out interest-only real estate financing from foreign banks or alternative financial institutions.
In addition, interest rates at Dutch banks have risen significantly and are now generally more expensive than at foreign parties. Dutch banks also continue to adhere to repayment requirements, even if the Loan-to-Value (LTV) is 50 percent or less. The financing possibilities in the Netherlands has never been so diverse, and it may be worthwhile for foreign financial institutions (banks, insurers, hedge funds, mezzanine or junior lenders) to come to the Netherlands right now.
At Novel Finance we now finance almost all refinancings in an alternative way or with foreign providers. The traditional Dutch major banks are lagging behind. The strict regulations have not only led to higher interest rates, but adhering to the mandatory repayment requirement is a particular challenge.
Our global providers offer room for alternative financing options, such as crowdfunding, private loans from professional hedge funds and investments from pension and insurance funds. We see cooperating with various German banks in particular, lead to financing solutions for our clients.
It is also easier to release excess value with foreign financiers. Much more is possible than people think. Do you want to know more? Contact us and make an appointment.