Kameo Lowers Variable Mortgage Rates for Property Financing
Kameo, a leading player in the property financing market, has recently made headlines by lowering its variable mortgage rates. Since its inception in 2016, Kameo has provided loans amounting to a staggering 8 billion kronor, catering to a variety of property projects across Scandinavia, ranging from residential homes to industrial properties. With General Manager Fredrik Källgren at the helm, Kameo is revolutionizing how property financing is approached.
Speed and Flexibility: A Game Changer
One of the standout features of Kameo’s offerings is its speed and flexibility, setting it apart from traditional banks. As Källgren explains, banks typically require projects with a minimum budget of around 300 million kronor to consider financing. In contrast, Kameo can finance projects starting from as low as 10 million kronor, providing much-needed support for smaller endeavors. This flexibility extends to larger projects as well, where Kameo collaborates with other actors to facilitate funding.
Quick Financing Solutions
Another noteworthy aspect is Kameo’s ability to deliver a financing proposal in just a couple of weeks. This rapid turnaround is a stark contrast to the lengthy process at banks, which can take anywhere from 6 to 12 months. Furthermore, Kameo’s unique approach allows them to initiate housing projects without requiring pre-booking of apartments—an often insurmountable hurdle for banks.
Källgren elaborates, “Banks find it challenging to finance, for instance, a housing cooperative if the apartments are not sold beforehand. However, we can step in and finance such projects, enabling developers to get started sooner and sell finished apartments at a higher price.”
The Kameo Financing Model
Kameo’s financing strategy involves leveraging an investment platform that connects property companies with investors. The funding is achieved through three main channels: an in-house credit fund, partnerships with institutional investors—including a prominent international pension fund—and a robust network of individual investors.
To date, Kameo has facilitated over 1,500 loans since its establishment and has shown resilience in both booming and declining economies, evidenced by a remarkably low credit loss rate of only 0.1% on completed loans.
Streamlined Process and Personalized Service
The process for securing financing via Kameo is both straightforward and efficient. Property companies initiate contact, engage in discussions about their projects with dedicated advisors, and receive swift feedback on their financing options. Källgren emphasizes the importance of face-to-face interactions: “We are happy to meet on-site at the project. If both parties feel comfortable, we can begin compiling necessary materials and start the credit assessment, which usually takes about 1-2 weeks. After that, we can present terms and the financing structure.”
Moreover, Kameo allows certain projects to be financed up to 75% of their value, a much higher limit than typically offered by banks, further illustrating their commitment to supporting diverse property projects.
Strong Ownership and Commitment to Growth
Kameo is backed by reputable owners, including ABG Sundal Collier and Incore Invest, and holds licenses from the Finansinspektionen (Swedish Financial Supervisory Authority) to provide crowdfunding and payment services in Sweden. With this strong foundation, Kameo is poised for continued growth, empowering property developers across Scandinavia with innovative and flexible financing solutions.
