Only The Best Lending
Options For You
One of the most common questions we get asked by new clients is whether or not they can get financing to buy a home in Mexico. While most buyers either have the cash to buy their new mexican home, or use a HELOC to pull the money out of the equity in their home in the USA or Canada, there are some other options as well.
Taking a good look at these options may allow you to buy your home if you're not quite ready financially, or even up your budget to buy a larger home. In the past, there weren't a lot of options for non-mexican buyers to finance a new home...and the ones that were available has very high interest rates, and short terms. Thankfully, this is changing. Take a look at these options:
How Mortgages Work in Mexico for our US and Canadian Clients
Understanding how mortgages work in Mexico is essential for US and Canadian citizens looking to invest in this beautiful country. We've put together this page to make your choices as straightforward and accessible as possible.
Why Consider Financing Property in Mexico?
Mexico is an excellent option for vacation homes or permanent relocation with it's proximity to the USA and Canada. With beach homes, and homes with Sea of Cortez views selling for a fraction of the price of homes in California, Oregon, Washington, British Columbia, or Alberta, you can afford to get a bigger, or better quality home within your budget.
Financing Property in Mexico May Be a Smart Move for Several Reasons.
First, the real estate market in Baja California Sur is booming, especially in popular areas like San Jose del Cabo, La Paz, La Ventana, and El Centenario. According to recent trends, property values in La Paz have been steadily increasing, making it a promising investment opportunity.
According to recent reports, La Paz has seen a 10-15% annual increase in property values, plus, with the growing demand for vacation rentals, you can generate a substantial income if you choose to rent out your property.
So, whether you’re looking for a vacation home, a retirement haven, or a lucrative investment, financing property in Mexico is an option well worth considering.
Need to understand how to pull money out of your existing property so you can buy your dream home in Mexico?
"Christina was an absolute professional and great to work with. It was first time looking for a mortgage and she helped us navigate through all the options until we landed on a great match. She does all the hard work for you and was probably the best decision we made during our first time home buyer journey. Her communication is fantastic, always returned every email and answered every phone call. Will be absolutely using her services again!"
- Carlos Rodriguez
Mexican Bank Option - Intercam Dream Loan
Historically, securing a mortgage in Mexico as a non-citizen has been challenging, but things are changing.
Intercam Banco's Dream Loan is making it easier for US and Canadian citizens to buy their dream home in Mexico's most desirable locations, including Cabo and La Paz.
Currency: US Dollar.
Nationality: USA or Canadian citizens.
Immigration status: temporary, permanent or no residency.
Minimum property value: $250,000.00 USD.
Loan-to-value: up to 65% of the appraisal value (risk adjusted).
Loan term: 1 to 25 years (risk adjusted).
Fixed rate: defined according to credit profile and market conditions.
Fees: underwriting, closing and origination.
Benefits: no prepayment penalty, interest is calculated on the unpaid balance.
A One-stop banking experience.
Click on Intercam's logo to link directly with their Dream Loan site.
3rd Party Lenders to Explore:
MoxiGlobal
Mexlend
Cross Border Investment (CBI)
These lenders offer various types of loans to suit different needs, but most follow the LTV model:
LTV Loans (Loan-to-Value): These require around 30% down and typically have minimum loan sizes of about 6,000,000 MXN. They are serviced in USD, which can be advantageous for those with US-based finances.
Tip: If you have significant equity in your US or Canadian home, you may want to consider using it to free up cash for that home in La Paz you've been dreaming about. This can be a smart move to make your Baja real estate dream a reality without stretching your finances too thin. This strategy has been very successful for many expats and investors we've worked with, allowing them to buy beachfront or bay view properties without draining their savings.
Click on any of the logos to visit their website
For Americans
For Americans, Canadians, and other nationalities
For Americans, Canadians and other nationalities
Required Documents for Mortgage Applications
When applying for a mortgage in Mexico, having your paperwork in order is crucial. Here's a comprehensive list of documents you'll need:
Valid Passport (with at least six month of validity left)
Proof of Income
US Citizens: Recent pay stubs, W-2 forms, bank statements
Canadian Citizens: T4 slips, recent pay stubs, bank statements
Credit Report: A recent credit report from a recognized credit bureau.
Tax Returns: Your last two years of US or Canadian Tax returns. These documents help verify your income and financial stability.
Proof of Address: Utility bills, bank statements, or lease agreements showing your current address.
Employment Letter: A letter from your employer stating your position, salary, and length of employment. This document is crucial to verify your income stability.
Bank Statements: The last three to six months of bank statements. These should show your savings, investments, and any other assets.
Property Documents: If you're purchasing a property, you'll need the purchase agreement, property title, and any previous ownership documents.
