Are you wondering what’s the deal on Mexican mortgages for foreigners? If you are, then you are in the right place, because whether or not you are a foreigner, you can be eligible to get a mortgage in Mexico. Nevertheless, there are important factors to be considered.
Mexico is a booming market that provides long-term mortgages, although it is in the early stages of developing its long-term mortgage industry compared to Canada, Europe, and the USA. If you would like to know what’s the deal on Mexican mortgages for foreigners, then continue reading as these factors are being discussed.
Even though the mortgage industry is booming in Mexico, the mortgage industry is still behind many developed economies when it comes to interest rates. On an average, you can expect a fixed rate of 10-12 percent per annum which are mostly available to Mexican nationals. This may be high compared to Canada, USA or Europe, but the mortgage loans are accessible. The Mexico mortgages can be received for ninety percent of the value of the property, so the buyer will only have to pay a ten percent down payment along with any fees that are added, and these feeds run around five percent. What does this actually mean? It means that you can purchase property in Mexico and the loan can be repaid in a timespan of twenty to twenty-five years.
Are Mortgages in Mexico Available for Foreigners?
It isn’t easy to get a mortgage in Mexico for a foreigner, but it’s not forbidden either. If you have a permanent residency in Mexico and you are employed by a Mexico corporation and you currently pay taxes in Mexico, then as a foreigner you can find plenty of banks to give you a mortgage in Mexico. If you are a permanent resident and you can provide an income, then you can also be eligible for a Mexico mortgage.
There are other options for foreigners who are wanting a mortgage in Mexico. Foreigners can opt for taking private developer financing for the property and this is common for any new builds in Mexico, and foreigners can also make up a contract with the seller and negotiate any terms to pay back the money for the property. These mortgages are considered a short term loan and they also require the foreigner to place a large down payment and the down payment can be as high as fifty percent. Foreigners can also consider a private loan, but the interest rates are very high and the risks are plenty.
Mortgages in Mexico Requirements
- A bank statement from a Mexican bank that dates back to six months
- A bank statement from your foreign bank that dates back to six months
- Pay slips from a genuine Mexican employer that dates back to six months
- Permanent residency
- Temporary residency
- A legal birth certificate
- RFC legal tax number
- A legal medical certificate that provides eligibility for life insurance policies
- Mexico credit rating that is good
- Credit report from a genuine foreign credit service
- Proof or address or residency in Mexico
Here are few of the mortgage in Mexico requirements:
This is what’s the deal on Mexican mortgages for foreigners. As you can see, it isn’t impossible for a foreigner to get a mortgage in Mexico.