FAQ

Frequently Asked Questions

This information was provided by MexLaw.com. Please consult their website or contact a lawyer for more details or a legal opinion.

  • Simple, they create a Bank Trust. For more than 30 years foreigners have been purchasing property in Mexico through a Bank Trust. Essentially the Bank lends its name to the transaction for the foreigner to purchase the property. The title deed will also include the Trust. In it the Bank is identified as the buyer and the foreigner as the beneficiary of the Trust.

  • The same as in your country of origin. You can occupy, rent, renovate, and sell the property. If your property is subject to a homeowner’s association (condominium) then you could vote at assemblies etc.

  • In all real estate transactions, the buyer pays the closing costs.

  • In all transactions for real estate purchases by foreigners in Mexico, the average closing costs vary between 8 to 12% of the purchase price. This may come as a shock to most foreigners who are accustomed to lower closing costs however, unlike other jurisdictions in North America, the carrying costs of the property in Mexico are extremely low. The average is between 1 to 2% a year.

  • Yes. Most Bank Trusts for the purchase of property in Mexico have a 50-year duration however they can be renewed for an additional 50 years.

  • Yes, American citizens can deduct interest paid on loan to acquire property. As for Canadian Citizens, they could do so if the property is a rental income property.

  • Our highly qualified team can provide you personalized attention. Once you are approved you will be assigned your own personal assistant to guide you through the entire process. Communicating with them will be simple and efficient. We work with only the top lenders that have experience in lending to foreigners for international real estate acquisitions. We know the requirements of each and can guide you to the right lender. Finally, we know Mexico. We have been working with foreigners acquiring real estate here and are familiar with their anxieties, apprehensions, and concerns. We will address each of them so that the process is familiar, and their dream acquisition is a success.

  • Simple, just apply! If you have a good credit rating and enough capital to meet the debt-to-equity ratio, then you qualify.

  • This depends on your credit rating; the debt-to-equity ratio of your acquisition. Credit rating: as this is usually the purchase of a secondary or vacation property and you may already have real estate in your country of origin, we will consider and present your credit report from your country of origin. We will use our best efforts to convince the lenders to approve your loan based on that information. (minimum credit rating of 660, if less we can still consider the borrower on a case-by-case proves); debt to equity lenders in Mexico will consider a 70% loan to value for lending here. That means that you need to establish that you have 30% of the purchase price available. This amount cannot be borrowed from another source and needs to be your equity; If you meet the lending criteria mentioned above, you can borrow up to $1 million USD.

  • Yes, for this to be a worthwhile effort for everyone, including the lender, the minimum value of the property must be $150,000 USD.

  • Yes. These loans are available to qualified Canadian and American citizens.

  • Yes. As you will read later, the loan process in Mexico is referred to as a Secure Bank Trust. The lender and you are beneficiaries of the bank trust created to acquire the property in question. If you sell the property to a qualified borrower, then the secure bank trust can be transferred to them with the lender’s approval.

  • Interest rates from 9.08% to 13.5% depending on the borrower’s income and loan-to-value. When you apply, after our review of your application, we can provide you with an interest rate and amortization.

  • Simple. Just fill in the application form. We will review it and reply within 48 hours. If you are approved, we will collect the supporting documentation and issue a letter of commitment with the loan terms.

  • To be clear: a pre-construction project is a purchase made on a property to be constructed, not yet finished. Delays vary between 16 to 24 months from the date that you sign the purchase agreement and the date of delivery. Yes, we do finance certain pre-construction projects. Please contact us before completing the application form and we will review the possibility of financing that acquisition.

  • In certain situations, if you are auto constructing, yes, we can finance the acquisition of land and the construction of your property. Please contact us before completing the application form.

  • Here are some other key points that make this a favourable borrowing option:     - Property evaluation is required   - No early payment penalty   - No title insurance or life insurance   - Property insurance required   - Amounts are in USD currency   - Buyer pays all closing costs (please see section buying property in Mexico for more information on this