Can You Financing your Mexico real estate purchase with a bank loan in Mexico?
Between 2007 and 2012 mortgages in Mexico with Mexican banks were available for foreigners. In mid 2012 Mexican banks have stopped the usd based loan for foreigners and are not taking any more applications. Bancomer ( Compass Bank in US) and Scotiabank were the two major lenders in usd for properties in Mexico for foreigners. IN Jan 2012 Bancomer stopped their program and in April 2012 Scotiabank stopped taking new applications also. We are told that they will resume some time in the near future.
As of 2018 there are still no Mexican bank lending programs on the horizon.
There are limited sources of loans such as peso based bank loans, or private lenders.
Some owners will offer short term financing to buy real estate Playa del Carmen. Just ask me for options. However our market is mainl cash based which means you know how much you would like spend on your Playa del Carmen property, based on your assets in your home country.
As soon as something changes for mortgages in Mexico I will post here on this website and also on my facebook page https://www.facebook.com/livingrivieramayarealestate
When bank mortgages for property in Mexico for foreigners were available, some time starting around 2007, it provided more options to buy real estate in Riviera Maya, in theory. However the interest rates were fairly high and requirements of credit rating and length of the loan made it somewhat unattractive for buyers. In reality very few people actually followed through with bank loans in Mexico to buy property. Instead buying real estate in Playa del Carmen and all Riviera Maya real estate has been and is purchased mainly using assets of buyers such as second mortage on home in Canada or USA, or retirement funds, or other asset liquidation.
It is actually a very good way to buy real estate in Playa del Carmen Mexico. It gives a realistic purchase price and a realistic cash return on investment.
Non the less here is some info from when lending was available. It made it possible and easy for Canadians, Americans and British Citizens to buy a condo, or house in Riviera Maya Mexico with a loan from a Mexican Bank. The mortgage for Mexico real estate was originated here in Mexico.The real estate in Mexico was used as collateral for the loan. Your assets in your home country were not used to buy Playa del Carmen real estate.
Mortgages in Mexico followed the same basic format as a loan from a bank in USA or Canada.
Once a Playa del Carmen condo or beachfront home for sale in Riviera Maya was identified, here is how it worked when loans were available.
· Buyer gets preapproved for loan based on income and credit score
· Minimum Fico score required: 649
· Loans are fixed in USD for Canadian and US citizens; income in USA or Canada
· Mininum 25% down is required for a maximum loan to value of 75%
· Loan values of 100,000 usd or more
· Terms of 10, 15, 20, 25 and 30 year terms available.
· Fixed rates available or adjustable rates for your mortgage in Mexico
· Best loan rates ever in the history of Mexico available
· Rates for Mortgage in Mexico can range from 5.50 percent to 9%
· Cash Refinance mortgages are available also
· Buyer pays closing costs of approximately 6%
· Usually a loan is closed in 45-60 days.
· Mortgages in Mexico were available from Major Mexican banks connected with Canadian or USA reputable banks
· Work directly with the bank for your mortgage in Mexico, or use one of our reputable Mortgage broker to shop the best prices and terms for you.
· Just contact me for more information. I will put you in touch with the private source or an owner direct for your mortgage in Mexico.