Financing Your Mexican Property Investment
Financing Your Mexican Property Investment
Historically and in many cases today, most property/real-estate deals in Mexico are cash only. Mexican Banks are now beginning to offer mortgage products for the purchase of real-estate in Mexico, although 30-40% deposits are required and interest rates are not as attractive as those in the US, Canada and Europe.
There are some banks in the US who are now offering mortgages on Mexican Property, but they are usually offered on the back of equity built up in a property in the USA and the rates are higher on the additional loan amount, to reflect the additional risk. Many Americans HAVE mortgaged a house in Mexico using this financial vehicle so it is possible.
Financing inside Mexico is still difficult and relatively expensive, so if you plan to buy real-estate in Mexico you will be well advised to have your own foreign funding available; either through an equity-release scheme or other fund. Some people who are planning to retire to Mexico will sell their house in their home country and use the proceeds to finance property in Mexico; those who want to keep a 'base back home' may release equity from their existing home, rent it out, and use the dual proceeds to fund their retirement home in Mexico.
It's important to think carefully beforehand about how you are going to finance your property in Mexico. An Estate Agent in Mexico may be able to advise you, and some even have connections with financial institutions in the USA who can proffer solutions depending on your personal circumstances.
Historically and in many cases today, most property/real-estate deals in Mexico are cash only. Mexican Banks are now beginning to offer mortgage products for the purchase of real-estate in Mexico, although 30-40% deposits are required and interest rates are not as attractive as those in the US, Canada and Europe.
There are some banks in the US who are now offering mortgages on Mexican Property, but they are usually offered on the back of equity built up in a property in the USA and the rates are higher on the additional loan amount, to reflect the additional risk. Many Americans HAVE mortgaged a house in Mexico using this financial vehicle so it is possible.
Financing inside Mexico is still difficult and relatively expensive, so if you plan to buy real-estate in Mexico you will be well advised to have your own foreign funding available; either through an equity-release scheme or other fund. Some people who are planning to retire to Mexico will sell their house in their home country and use the proceeds to finance property in Mexico; those who want to keep a 'base back home' may release equity from their existing home, rent it out, and use the dual proceeds to fund their retirement home in Mexico.
It's important to think carefully beforehand about how you are going to finance your property in Mexico. An Estate Agent in Mexico may be able to advise you, and some even have connections with financial institutions in the USA who can proffer solutions depending on your personal circumstances.
posted by La Punta Realty at 5:02:00 PM
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