If you haven’t experienced it before, the home loan process can feel overwhelming, but our agents will help you stay informed throughout the process, from pre-approval to closing. The first thing to do is consult with a mortgage specialist (or two). If you don’t already have someone in mind, we partner with some of the best lenders in the industry, and we’d be happy to introduce you, so you’ll be taken care of. 

A typical bank in the USA or Canada will not give you a mortgage for a Mexican property, but there are several options: 

1) You could obtain a mortgage in Mexico with a Mexican bank. The application process and interest rates can be a bit daunting, and most lenders require 40% payment from you, and they finance 60%. You would also pay the closing costs plus a financing fee that’s usually about 3% of the purchase price, and interest rates are commonly 8% - 10%+ annually. New programs come available periodically that take lower down payments and interest rates that start at 7.5%, with payment increases over time. Please note: Any mortgage / lien being added to the title of a property will need to add additional closing costs fees to complete.  Programs can vary but these are the brand strokes for normal residential property loans in Mexico.

Depending on the type of property and your financial profile, mortgages with up to 30-year amortizations exist. There are competitive minimum down payment options to accommodate varying needs and preferences along with flexible repayment options that could align with your financial goals and objectives.

2) Line of Credit: If you own a property in your home country with sufficient equity, you could obtain a home equity line of credit from a local bank at a low interest rate, you would just owe interest only. This is the easiest and cheapest option if this is available to you. 

3) Leverage Investments: If you own stocks / investments you could borrow against those so you don’t need to sell them. Depending on your investment portfolio, if they give you a preferred rate you may be able to pay for example, 4% interest leveraging up to 50% of the value of your investments (recommended max. is 35% to allow for market fluctuations). 

4) Private lending: there are investors looking to earn a return on their money that are willing to lend usually up to 50% of the value of the property, starting around 7%+ interest rates. Additional fees to consider are approx. 4% of the value of the property for the financing fees and extra legal costs. 

What amount of available cash do you have set aside for this purchase? This will help determine whether you may need to wait a bit longer and save more $$$, sell some assets, or if we can help you make something happen now (if you wish).