Are you thinking about purchasing real estate in Mexico and want to know how foreigners get mortgages in Mexico? Read on and find out all you need to know about mortgages in Mexico for foreigners.
How do foreigners get mortgages in Mexico
The mortgage and lending industry in Mexico is still in its infancy, relatively speaking, but is blossoming well, and as such there is great potential despite high interest rates (compared to nations like the USA and Canada). Despite average interest of 10 – 12% Mexican nationals can very easily, and often do, take up mortgages, but eligibility for foreigners is a murkier issue.
Mortgages in Mexico for Mexican Nationals
Mortgages in Mexico are readily available for up to 90% of the cost of the home, now, at an interest rate of around 10%. Despite lagging behind the worlds leading economies slightly, Mexico is proving to be fertile ground for investment, and for a 10% deposit plus fees (usually around 5%) most people can get on the home owners ladder with a 20-25 year mortgage.
Can foreigners get a Mortgage in Mexico?
Yes – foreign nationals can be eligible for mortgages in Mexico, but it is not so easy as it is for locals. Nonetheless, if you have a job in Mexico, temporary or permanent residency, and you pay taxes you may find that there are Mexican banks who will lend to you. Likewise, if you are a permanent resident who can prove you have a regular foreign income you may have a fair chance.
Private Loans and Developer Financing Options
Should you find that there are no banks ready to fund you, there are other options which can be considered. First of all there is private developer financing; often available on new builds developer financing occurs when you enter into an agreement to with the developer to pay back the value of the property over time. Such agreements tend to be shorter term, and can require deposits up to 50%.
Minimum Requirements for foreigners to get mortgages in Mexico
If you wish to get a mortgage in Mexico as a foreign national you will need to meet a few criteria:
- 6 months of statements from your foreign bank, a Mexican Bank, or 6 months of payslips.
- Temporary or permanent residency.
- Your Birth Certificate and RFC Tax Number.
- Proof of your eligibility for life insurance.
- Good credit in Mexico, or a good credit report from an authorized foreign creditor.
- Proof of address.