Mortgages

Consider all information in this website as opinions, and a starting point for doing your research. Mortgages are available with a typical rate of 8 to 12 per cent interest. More and more Mexican banks and financial institutions will lend to expats. Commission plus life and property insurance are usually required. Mortgages may have to be paid off by the time you are in early 70's, but some financial institutions have raised the age to when you are in your 80's. So, one of your first questions will be at what age must my mortgage be paid off. To qualify for a mortgage, Mexican banks usually only consider your Mexican credit score and the amount you deposit into a Mexican financial institution. However, some other mortgages sources will consider your US or Canadian credit score. If a bank will not consider your foreign credit score my suggestion should you think you may want a mortgage, car loan, extra money for a medical bills etc. is to open a Mexican bank account. See another HowToBuyAHouseInMexico.com blog post for an opinion about how to open a bank account under the heading ETC. Once you have done so, obtain a charge card. Initially, the limit on your card will be low and 5000 pesos limit is not uncommon. You can have your bank automatically pay each month's charges in full avoiding high interest which are typically 40 to 65% with the upper range being more common. Each month buy something on credit or buy an item with 12 payments with zero interest. When allowed, which is usually annually, increase your card's limit.

A mortgage takes many weeks to approve. There will be pages and pages of forms, all in Spanish. Typically, plan to start an application 3 months in advance.