Financing costs

Financing costs encompass all expenditures linked to securing debt capital for a property transaction or project. These include interest charges, broker fees, appraisal expenses, legal and notarial fees, and guarantee premiums or arrangement fees.

For investors and business owners, financing costs are a critical component in assessing investment returns: higher interest rates and longer loan tenors directly increase the total cost of capital. In development projects, these costs are typically integrated into the overall project budget and can represent a material portion of the final value delivered to the investor or end user.