Payment
A buyer is expected to bring to the closing all the necessary funds needed to fulfill the transaction. A bank check is the typical form of payment as cash is used in a majority of Mexican real estate transactions. Likewise, when multiple offers are on the table, cash may be the winning factor.
In the past, mortgage financing was not a viable option considering that the interest rates were unfavorable, the loan term was short, and required a down payment of up to 50%. However, new developments and rapid changes have dropped the costs of financing, making it a more practical choice.
In general, the terms of mortgage financing include:
- 10-20% down payment
- Interest rates of 8-11%
- 20-30 year terms
- Minimum loan amount of $100,000
- Maximum loan amount of $5,000,000
Companies offering mortgage banking:
- GS Mortgage Securities
- Marshall and Isley
- Sonada Financial Group
- Collateral International
Property Insurance
Purchasing casualty insurance is not a requirement for closing on Mexico Real Estate and hence is not a common practice. The coverage is not readily available and is thus costly. Most homeowners in Mexico pay repair costs out of pocket. However, some condominium developments may insure the common areas and the building. With the doors opening for mortgage financing, property insurance may become more prevalent
Real Estate Buyers
If you are considering purchasing land in Mexico it’s very important to get proper representation.
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