can foreigners get a mortgage in mexico?

can foreigners get a mortgage in mexico?

Many Americans and Canadians looking to move to Mexico are under the impression they can 1) just pick up a job and start working and 2) get a mortgage to buy a property of their choice.

In both instances, the answer is no. If you want to work here in Mexico, you need to either have permission from immigration (IMN) or you need to become a permanent resident, at which point, you can then work and pay taxes like everyone else.

As for the mortgage, those are now reserved for Mexican nationals only. Before you go off and say “well, I read that you can”, let me be the first to say Google is not good at bringing up recent information. Google, at best, tries to offer a user relevant information, regardless of when it was written.

In saying that, you will find articles online on how foreigners can get a mortgage. I’m here to tell you that sadly, those days are gone. In the state of Quintana Roo, for instance, the two main banks that offered mortgages to non-Mexicans (foreigners) stopped in 2012.

BBVA and Scotiabank were the two main lending institutions for foreigners

Bancomer stopped offering them in January of 2012 and Scotiabank in April of the same year. While there were many reasons, the main issue was the lengthy foreclosure process when an owner defaulted. Let’s just say that was the straw that broke the camel’s back.

While you may be bummed at the news that a Mexican mortgage is not in your future, you may change your mind when you learn that those lenders were charging upwards of 11 percent in interest, considering you could even qualify.

You may also be interested to know that each state in Mexico has its own rules when it comes to foreigners and banking, so it may be worth your while to investigate other areas to live in the event you really want a Mexican mortgage.

Other banks in other states may have different rules when for foreigners and mortgages, so again, do your homework. In Quintana Roo, where Cancun, Puerto Morelos, Cozumel, Playa del Carmen, Tulum, etc. are located, mortgages to non-Mexicans are a no-go.

Mexican bank mortgage rates July 2021

Aside from an extremely high interest rates, banks such as Bancomer (Compass Bank in US) and Scotiabank, which were the two main lenders to foreigners, had a lengthy list of requirements that needed to be met.

Some of what they required, aside from being a permanent resident and having an RFC (tax) number, included a current medical certificate showing you are in good health, six months of financial history from your country bank, proof of address, a credit history from your country and at least three months of historical bank statements from your Mexican bank account showing monthly deposits that would cover at least 200 percent of the monthly mortgage payment.

You could also only be granted a mortgage for 70 percent of the value of the home with loans being granted for properties valued at $100,000 USD or more. Those rules, I believe, are straight across the table regardless of where you apply.

That said, 90 percent of real estate purchases made in Mexico by foreigners are cash purchases. The other 10 percent either remortgage what they already have, get a personal loan or sell assets to buy a home here.