Financing in Mexico is changing and the availability of mortgage loans is becoming more readily available for non nationals (ie US and Canadians). We have some sources not mentioned below, but as you will see as you read below, the subject of financing is complex. But not to worry. At Coldwell Banker La Costa we can assist with simplifying this process and find ways to get you into your dream home. If you would like more info please fill out the contact form at the bottom of this page and you will be one step closer to living in paradise!
Financing Real Estate in Mexico
The availability of mortgage financing in Mexico today is substantial – for Mexican Nationals, Permanent Residents, and Non-Residents. With less than 15% of the existing housing stock currently financed with long-term mortgage loans, the institutional and governmental financing sources are almost unlimited, meaning the potential market for new mortgage financing is set to expand substantially.
Mortgage financing and loans in Mexico are typically granted in Mexican pesos with the potential for loan-to-value ratios of up to 90%, with fixed-rate interest plans. Current interest rates vary from between 7.9% and 10% per annum with some banks offering lower rates depending on credit ratings and eligibility. Interest rates can also be fixed for up to 20 or 25-year amortizations. The qualification requirements are very similar to the underwriting standards one would expect anywhere: strong credit score, consistent and verifiable bank deposits, tax returns, and professional appraisal.