Mexico is one of the top growing markets that approve long-term mortgages. Albeit an emerging mortgage market when compared to Europe, United States, and Canada, it has great potential. The interest rates may be higher when you compare the interest rates to other nations that are fully developed but lenders in Mexico are available to offer alternatives to your home mortgage lenders. Although foreigners may be eligible for a Mexican mortgage many factors should be considered.
In Mexico, the mortgage industry is thriving, but unfortunately Mexico is still behind other countries’ economies. Mortgage loans are easily ready for Mexican citizens in pesos, which has a fixed rate of between 10% to 12% per annum. This interest rate is higher than in Europe, United States, or Canada, but they are very accessible. The mortgages in Mexico offer 90% of the value of the property, so applicants will only need to have 10% down along with any fees (generally around 5%), so you can purchase property in Mexico and the loan can be paid from 20 to 25 years.
Can Foreigners get a Mortgage in Mexico?
It is not impossible for foreigners to get a mortgage in Mexico, but it isn’t easy. To get a mortgage in Mexico, foreigners must be a permanent resident of Mexico, pay Mexico taxes, and be employed by a Mexico company. Foreigners can find several different banks that will give you a mortgage. Any permanent Mexico resident that has an income that is foreign can also qualify for a Mexico mortgage.
Private developer financing is another option and this can be for any new construction homes or the foreigner can come up with an agreement with the seller of the property for payments for the property for a certain amount of time. These are short term mortgage loans and they require the buyer to make a bigger deposit and sometimes the deposit is 50%, higher interest rates and many risks can occur with a private loans, but this is another option for foreigners.
Minimum Requirements for a Mortgage in Mexico
- Mexican bank statements for six months
- Bank statements from your personal foreign bank for six months or pay stubs from a Mexican employer for six months
- Permanent and/or temporary residency
- A legal birth certificate
- RFC tax number
- A medical certificate, so you can be eligible for life insurance in Mexico
- Mexico good credit rating or a good credit report from an authorized credit service in your own country
- Proof of address
These are the minimum requirements for a mortgage in Mexico:
These are ways on how foreigners get Mexican mortgages. If you are wanting to get a Mexican mortgage, then use the helpful tips that have been provided here.