So you are retiring, and you dream of a second home in a warm and exotic location in Mexico. There are plenty of reasons for this. For instance, Mexico homes for sale are often cheaper to purchase and maintain than the ones in the United States or Canada. Also, the cost of living in Mexico is much more reasonable as well because services, healthcare, food, and leisure are more affordable than back home.
There is also a general concern that savings could not be enough to cover the price of their new home. Many Americans and Canadians are looking into investing in a Mexico retirement home. Then, what should non-Mexican buyers need to do to get financing for their dream? In this post we will share all our different financing alternatives. There is no excuse no to buy Mexican property as a foreigner!
What type of financing are available for foreigners in Mexico?
Often ex-pats have several questions about the options they have for financing Mexico homes for sale. For those interested in investing in Mexico real estate, there are options available so you can decide which one fits your needs and desires the best.
The real estate market in Mexico is a cash market. 90% of American buyers in Mexico pay cash for their properties. However, if you need a loan to cover the total price of the property, there are still several options that many don’t know about yet.
At Top Mexico Real Estate we have partnered with two finantial institutions that lend to Americans and Canadians. Getting a mortgage loan in Mexico is a reality, yet it is understandable that you will have several doubts. Regarding the conditions and requirements that this financial institutions have, we have summarize it all on a downloadable PDF that you can find at: Financing Mexican Real Estate
Financing in the US or Canada to purchase a home in Mexico
There are many Americans and Canadians that have used this option. If you refinance a new loan, you can secure a 4.2% to 2.7% fixed interest rate, which is the lowest interest option we have found at present.
If you own a property, you most likely have equity in your home. You can take that. It is a very simple process, and you can get something around a 6% fixed interest rate.
The Home Equity Line of Credit (HELOC) is a more flexible option to take money out as you need it. The interest rate might be variable, and, evidently, it will all depend on your equity and your credit score.
Finally, depending on the area of Mexico you are interested in, a foreigner can purchase a Mexico beachfront property (in the restricted area) in two ways: through a bank trust (Fideicomiso) or by registering a Mexican corporation.Â
Those buying using an individual retirement account or with the help of financing may want to look into the bank trust option.
In conclusion, working with a professional knowledgeable about the area and knowing which options are available to you is essential. Even better, you have several options to get a loan for buying the house of your dreams.Â
Now, if you have any question about Property Financing or if you are interested in any of the Top Mexico Real Estate properties we have listed anywhere throughout Mexico, please feel free to contact one of our representatives and we will be glad to help you find your dream.
