Mexico offers an ample selection of mortgages. Nowadays, they are not only managed in Mexican pesos, but also in US dollars, particularly for foreigners who wish to purchase a property at a tourist destination in Mexico, as well as for Mexicans who work abroad and are looking to acquire a property here.
A dollar mortgage is a loan with a fixed rate paid in Mexican pesos, but the loan is carried in US dollars. This credit is designed for persons who have an income in US dollars. As in a fixed rate, the payments are established consistently with the US dollar.
Since the mortgage industry usually recommends that you take a loan in the same monetary value as your income, it is always advantageous to have the flexibility and possiblity to do so.
Today, the dollar mortgage has two fundamental objectives:
1. To offer credit to foreigners who wish to buy a beach property or a second home in Mexico
2. To offer credit to Mexican nationals, mostly those working in the United States and wish to purchase a property for their family in Mexico using the same denomination as their income.
The goal of offering a credit in dollars is to attend to a market over more than 15 or 20 years and is different than one directed at Mexican nationals.
Although people who earn an income in dollars would probably think they would prefer a credit in dollars; there are some cases where they may take a mortgage in pesos, since they will be coming to live in Mexico and will be using pesos to manage all of their expenses.
Finally, one of the main characteristics of dollar credit is although they have credit in dollars, the rate is not the same as in the US because they are acquiring a home in Mexico and not in the United States.
Remember that MEXLend is here to advise you accordingly and take care of your investment from the moment you acquire it.
