Obtaining Mortgages in Mexico for National and Foreign Buyers

When considering purchasing a property in Mexico, it’s natural to wonder about the possibility of obtaining a mortgage in destinations such as Puerto Vallarta, Los Cabos, Cancun, or other charming cities.
The good news is that it is indeed possible, with various options available for both Mexican citizens and foreign buyers.

The mortgage system in Mexico operates similarly to that of the United States or Canada, offering different terms, interest rates, and payment schemes. It’s important to note that the process of obtaining a mortgage in Mexico may involve a larger initial payment compared to other countries; however, the benefits of owning a property in such a vibrant and beautiful environment justify this investment.

With the guidance of experienced professionals, applying for a mortgage in Mexico can be a smooth process that provides security for your real estate investment in the country. Similar to American and Canadian banks, applying for a Mexican mortgage will require the submission of your credit history, income information, and debts.

For foreigners, income from other countries, such as the United States or Canada, is used to assess the ability to pay. Additionally, it’s important to highlight that the initial payment is typically 30% of the purchase price, plus an additional 10% to cover closing costs, totaling a 40% down payment.

Regarding interest rates, these range from 7% to 18%, although providing personal details to the mortgage agent is essential to obtain a more precise figure based on your credit history, income, and debts.

A significant difference compared to mortgages in the United States or Canada is the requirement of a life insurance policy in Mexico. Even if you already have a policy in your home country, one will be required here.
This may pose challenges for some buyers, especially those with pre-existing health conditions or of a certain age, as they may face difficulties in obtaining coverage.

For more information or assistance in understanding the mortgage process in Mexico, it’s advisable to contact a professional and certified mortgage agent or seek guidance from your real estate agent to find the most suitable mortgage option for your needs.