Are there mortgages in Mexico for foreigners? Mexico has been a growing market that provides long-term mortgage loans. Although, the long-term mortgages in Mexico are still new when they are compared to Europe, the United States, and in Canada. Foreigners can get a mortgage in Mexico as there are plenty of financing sources, but you should know that the interest rates are higher when you compare them to other countries. Are you eligible to receive a mortgage in Mexico? Continue reading to see the factors that are considered when applying for a mortgage in Mexico.
The Mortgage Industry in Mexico
The mortgage industry in Mexico is on the rise, but compared to the top world economies Mexico mortgages are still behind. For Mexican nationals, the loans are available in pesos with an average 10-12% fixed rate, which of course is much higher than in Europe, the United States, and Canada, but if you are wanting a mortgage in Mexico it’s accessible. The mortgages in Mexico provide the buyer with 90% of the value of the home, so the buyer will only have to pay 10% of the deposit and any fees that is required. The fees are usually 5%, and the mortgage can be paid over the next 20 to 25 years.
Is it Possible for Foreigners to get a Mortgage in Mexico?
It is possible for foreigners to get a mortgage in Mexico, but it isn’t an easy task. Foreigners must possess a permanent residency in Mexico and they must be employed by a Mexican company that pays into the Mexico taxes. The banks will loan foreigners the money to purchase property in Mexico and if you are a permanent resident of Mexico and you can provide income that is foreign, then you also can qualify for a mortgage in Mexico.
Foreigners can also choose a private developer financing, which can be done on a home that is being built.
Foreigners can also draw up a contract, then negotiate an agreement with the seller, so the buyer can pay for the property over time, and this type of mortgage is a short term mortgage loan, but foreigners must be aware that the short term mortgage generally requires a 50% deposit or down payment and any private loan also comes with many risks and the interest rates are very high.
The Minimum Requirements for Foreigners Wanting a Mortgage in Mexico:
- Mexican bank statements for the last 6 months
- Foreign bank statements for the last 6 months and/or Mexican employment pay slips for the last 6 months
- Permanent or temporary residency
- A birth certificate
- A RFC tax number
- A medical report and certificate for eligibility for life insurance
- Good credit score in Mexico or good credit score from your own country credit service
- Proof or address
There are plenty of mortgages in Mexico for foreigners. Foreigners should look over their options, then proceed with the mortgage that suits their needs and preferences.