If you are considering purchasing property in Mexico, you may be wondering if it is possible to obtain a mortgage or home loan in Puerto Vallarta, Los Cabos, Cancun or any other beautiful city. The answer is yes, and there are numerous options available to both Mexican nationals and foreign buyers.
Mexican mortgages function similarly to those in the United States or Canada, with a variety of terms, interest rates, and payment schedules.
It’s important to note that obtaining a mortgage in Mexico may require a larger down payment than in other countries, but the benefits of owning property in such a vibrant and beautiful country are well worth the investment. With the help of experienced professionals, securing a Mexican home loan can be a straightforward process that leaves you feeling confident in your Mexican real estate investment.
Applying for a mortgage in Mexico will require you to provide your credit score and income and debt information just like US and Canadian banks require. If you are a foreigner, your foreign earn income, meaning your US or Canadian income will be used to qualify you.
As mentioned above, you will also be required to put a larger downpayment down than you are used to. This usually consists of 30% of the purchase price, plus 10% for closing costs, totaling 40% up front.
Generically speaking, interest rates range from as low as around 7%, and go as high as 18%. These numbers are designed to give you a rough idea. It is important to provide your personal information to the mortgage broker to get a more accurate figure based on your credit score, income, and debt.
Another important consideration, which is different than US or Canadian mortgages is that in Mexico you will be required to carry a life insurance policy. Even if you have an existing life insurance policy back in your home country, you will be required to obtain one here in Mexico. This can be a sticking point for many buyers who do not qualify based on their age or health conditions, as you may be denied based on certain pre-existing conditions or for being a certain age.
For more information or help understanding how Mexican loans work always contact a professional and certified mortgage broker, or ask your real estate agent for help to find the right mortgage option for you.
-Your México Bienes Raíces Experto