DMPM: Why Dutch mortgages are booming

May 13, 2026

_{This interview was originally written in Dutch. This is an English translation.}

DMPM is celebrating its tenth anniversary this year. To mark the occasion, Financial Investigator spoke to CEO Rishi Santokhi and Arno Dries, Investor Relations Manager, about the rapid growth of institutional investment in Dutch mortgages, the increasing diversity of mortgage solutions, and the role of coordinating bodies within the wider mortgage chain.

By Harry Geels

DMPM is celebrating its 10th anniversary this year. How has it been for you, and what developments have you seen over that time?

Arno Dries: ‘We are part of the Blauwtrust Group and were established in 2016, when various institutional investors asked whether we could facilitate investment in Dutch mortgages. So we actually started as a start-up within an established company. We then quickly launched our first mortgage label, IQWoon, and secured our first institutional client. We have now provided around €20 billion in mortgage loans across several labels. We have actively contributed to the shift whereby institutional investors gained direct access to the mortgage market, without the intervention of banks. This trend is ‘here to stay’. There are now more than ten providers in the Netherlands with a similar business model. That shows just how quickly this market has grown.’

Rishi Santokhi: ‘If you were to analyse the providers of Dutch mortgage products, you would see that some providers are better at funds, and others at discretionary solutions. Some of these providers are part of an insurance company, whilst others operate as independent service providers. We have also seen that the diversity of mortgage products has grown significantly in recent years. In fact, investors can now build any bespoke product, for example in terms of yield, risk profile, or duration.’

What makes the Dutch mortgage market so attractive to institutional investors?

Santokhi: ‘Firstly, it offers risk diversification, with an attractive risk-return ratio. Dutch mortgages combine relatively low risks with stable, predictable returns, something that is hard to find in other asset classes. The credit risk is low in any case, because the payment discipline of the Dutch – partly due to our good social security system – is very high, and Dutch owner-occupied homes retain their value due to population growth and the structural housing shortage. Furthermore, the capital requirements for institutional investors are relatively limited under the various regulatory regimes. If you look at returns, risk and capital requirements together, Dutch mortgages are among the most attractive asset classes.’

There is still a yawning gap between the amount of savings and the financing required by the housing market

Dries: ‘Previously, institutional investors had to rely on the RMBS market to gain access to the mortgage market. Through our products, they now have direct access and therefore higher yields than before. Importantly, it is not only Dutch investors who see the benefits of our mortgages. In recent years, we have also seen interest from foreign investors. The long duration of Dutch mortgages is also a frequently cited, unique characteristic of this market, particularly for investors with long-term commitments. Finally, what also makes mortgages attractive is the relatively strict supervision of mortgage lending. Most mortgages have an excellent underlying file full of supporting documentation.’

What distinguishes DMPM from other parties active in institutional mortgage management?

Santokhi: ‘With the Blauwtrust Group, we have the entire value chain in-house and under our control. We not only handle the ‘origination’ of mortgages, but also the ‘servicing’, all under the banner of a single organisation. We also offer various investment solutions, for example one where we focus entirely on NHG mortgages (under the HollandWoont label) and one with non-NHG loans (Clarian Wonen). We can also vary the loan-to-value ratio or the fixed-rate period to a certain extent. We distinguish between twelve mortgage classes, which allows us to tailor our approach to risk, return and term for investors.’

Dries: ‘And Blauwtrust Groep has been active in various facets of the mortgage market for decades. The fact that we have also been offering mortgage products for institutional investors for the past ten years has been a logical, enriching step. We have long enjoyed a good reputation among mortgage advisers, where the name Blauwtrust Groep inspires a great deal of confidence.’

The mortgage market has experienced considerable volatility in recent years. How does DMPM deal with changing market conditions?

Dries: ‘One of the reasons for that enormous volatility is the rise in interest rates from 2021 onwards, when inflation began to rise sharply. This has led to changes in consumer behaviour, including the fact that the mortgage refinancing market has virtually ground to a halt. People buying a home are now opting for shorter fixed-rate periods than they did a few years ago. Another interesting development is that, following the pandemic, far more services have been provided online. We have, incidentally, been able to adapt our activities to this quite easily.’

Dutch mortgages combine relatively low risks with stable, predictable returns, something that is hard to find in other asset classes.

What role do you see for institutional investors in closing the structural funding gap in the Dutch mortgage market?

Dries: ‘There is still a yawning gap between the amount of savings and the financing required by the housing market. Banks can partially close that gap by securitising their mortgage portfolios into RMBS portfolios, which frees up capital for new loans. Furthermore, institutional investors can make a contribution through providers such as ourselves. Incidentally, the gap has not yet been closed overnight, partly because house prices are likely to continue rising due to the housing shortage. That is, of course, a painful conclusion at the macro level, but a positive side effect for investors because the risk of loss on mortgages is then small.’

Santokhi: ‘Providers like us have brought a great deal of flexibility to the mortgage market, with all sorts of new ‘features’ such as sustainability, which has significantly shaken up the mortgage landscape compared to how it looked when it was mainly banks operating. Moreover, we do not have our own balance sheet and we do not create money, which means that, at a macro level, our mortgage lending makes the system safer – in other words, less debt-driven.’

How do you view the future of institutional investment in Dutch mortgages?

Santokhi: ‘The Wtp may still have an impact on this asset class. Pension funds sometimes use mortgages in their matching portfolio, and that is set to be overhauled. We don’t yet know how that will pan out. We don’t see that as a problem, however, as our clients are primarily insurers and banks. Given the drive and professionalism I have witnessed and experienced within our group over the last two years, I look forward to the coming decade with confidence. We will be celebrating our tenth anniversary in various ways. For example, we will be thanking all our partners in a fitting manner.’

Read the full interview in Financial Investigator magazine