Financing Real Estate In Mexico
As a foreigner, you are allowed to obtain a mortgage from a Mexican bank to finance the purchase of real estate in Mexico. However, the process can be complex and the terms may not be as favorable as those offered in your home country.
In general, the process for obtaining a mortgage in Mexico is similar to that in other countries. You will need to provide proof of income and assets, as well as a down payment of at least 20% of the purchase price. The mortgage term is typically 20-30 years, and the interest rate will depend on the lender and the type of property you are purchasing.
One important difference to note is that in Mexico, the mortgage is secured by the property itself, rather than by the borrower's personal creditworthiness. This means that if you default on your mortgage payments, the bank can foreclose on the property and sell it to recover the loan. This is known as a "real estate mortgage" or "hipoteca en garantía real."
It is also important to note that Mexican law imposes limits on the amount that can be borrowed relative to the value of the property. For example, the maximum loan-to-value (LTV) ratio is typically 80-90%, depending on the lender and the type of property. This means that you will need to provide a down payment of at least 10-20% of the purchase price.
But what if you're not a US or Canadian citizen?
If you're a US or Canadian citizen, you can even get a mortgage in Mexico to help finance your property purchase. At Nomad Realty, we work with a specialized real estate financing firm, to help our clients secure the best mortgage options.
Any foreigner can get a credit card and credit rating in Mexico as long as you have the right documentation and go through the migration process. This includes having an FM2 or FM3, which are similar to resident cards, and proving your income through payroll slips, tax reports, or debit/checking card deposits for three months. Our team of legal advisors can help you navigate this process and ensure that your investment is safe.
One of the unique features of Nomad Realty is that we also work with top developers who accept cryptocurrency payments for property purchases. This means you can buy your dream beachfront property in Mexico using Bitcoin, Ethereum, Ada, Xrp, Litecoin, or any of the major cryptocurrencies. Our legal advisors will make sure that your investment is protected throughout the process.
But what about financing? At Nomad Realty, we work with all banks to provide our clients with the best financing options, including international banks like Scotiabank, Santander, HSBC, and BBVA.
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The information contained herein should only be considered a guide is just designed to provide general information in regard to the subject matter covered and is based upon sources believed to be reliable; however, no representation or warranty is made as to its accuracy. If legal or financing advice or other expert advice is required, the services of a competent professional should be sought, and is totally confidential between the parts involved. Readers should check primary sources where appropriate and confirm that the information has not been affected or changed by recent developments, or jurisdictional differences with transactions.
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