Mexico is a growing market for long-term mortgage loans and is in its relative infancy when compared to the USA, Canada and Europe. As such, there is a great potential for financing sources, although interest rates are high when compared to fully developed nations. However, whether or not you, as a foreigner, are eligible for a Mexican mortgage depends on a number of factors, as will be discussed herein.
Mortgages in Mexico
The mortgage industry in Mexico is blossoming but remains well behind the leading world economies. Loans are now readily available for Mexican nationals in pesos with an average fixed rate of 10-12% per annum, which is much higher than the USA, Canada or Europe, but is nevertheless accessible. Mortgages can also be offered for up to 90% of the property value meaning that with just 10% deposit plus fees (which usually amount to around 5%), you can purchase a home to be repaid over 20-25 years.
Can foreigners get a Mortgage in Mexico?
It is not so easy for foreigners to get a Mortgage in Mexico, although not impossible. Foreigners who have permanent residency in Mexico, particularly those who are employed by a company in Mexico and pay Mexican taxes, will find there are a number of banks who will lend to foreigners. Likewise, permanent residents who can prove regular foreign income may also be eligible for a mortgage in Mexico.
Other options include private developer financing, which is sometimes available on new builds, or to negotiate an agreement with the seller to pay back the value of the property over a period of time. These types of mortgage loans tend to be short term loans and usually require a large deposit, which could be as much as 50%. Private loans are also a possibility but will face much high interest rates and risks.
- 6 months of statements from a Mexican bank.
- 6 months of bank statements from your foreign bank or 6 months of payslips from legitimate employment in Mexico.
- Temporary or permanent residency.
- Birth Certificate.
- RFC Tax Number.
- Medical certificate to prove eligibility for life insurance.
- Good credit rating in Mexico or a good credit report issued from an authorized foreign credit service.
- Proof of address.
Minimum Requirements for a Mortgage in Mexico
Developer financing with Villa La Estancia Real Estate
Developer financing is available for a limited time only for those who wish to purchase a property at Villa La Estancia in Riviera Nayarit and Cabo San Lucas. Developer financing is available over 10 years and depends on 25% deposit, fees and eligibility.