Authored by the expert who managed and guided the team behind the Mexico Real Estate Pack
Yes, the analysis of Mexico City's property market is included in our pack
Foreigners can secure mortgages in Mexico City, but the landscape has shifted significantly in 2025.
As of September 2025, several lenders actively approve mortgages for foreign buyers, though requirements are stricter than for locals. Down payments typically range from 20-30%, interest rates hover between 9-12%, and the approval process takes 1.5-2 months on average.
If you want to go deeper, you can check our pack of documents related to the real estate market in Mexico, based on reliable facts and data, not opinions or rumors.
Foreigners can obtain mortgages in Mexico City with down payments of 20-30% and interest rates of 9-12%.
Multiple lenders including Moxi, MortgageHub, and Kredi actively approve foreign applications in 2025.
| Requirement | Foreign Borrowers | Mexican Citizens |
|---|---|---|
| Down Payment | 20-30% (minimum 15%) | 10-20% |
| Interest Rates | 9-12% fixed | 7-10% fixed |
| Loan-to-Value | 70-80% (up to 85%) | 80-90% |
| Approval Time | 1.5-2 months | 1-1.5 months |
| Visa Requirements | Tourist visa acceptable | N/A |
| Income Source | Foreign income accepted | Local income preferred |
| Closing Costs | 3-7% of purchase price | 2-5% of purchase price |
What's the minimum down payment banks in Mexico City require from foreigners right now?
Most lenders in Mexico City require foreigners to put down 20-30% of the property's purchase price as of September 2025.
Digital lenders like Moxi and MortgageHub may accept as little as 15% down payment for borrowers with excellent credit profiles and substantial income verification. Traditional Mexican banks typically stick to the 20-30% range for foreign applicants.
The higher down payment requirements for foreigners reflect the additional risk lenders perceive when working with non-resident borrowers. Some premium lenders offer reduced down payments of 15-20% for borrowers who can demonstrate exceptional financial stability through multiple income sources or significant liquid assets.
It's something we develop in our Mexico property pack.
What interest rates are actually being offered today for non-Mexican borrowers, and how do they compare to locals?
Foreign borrowers in Mexico City face interest rates ranging from 9-12% on fixed-rate mortgages as of September 2025.
Mexican citizens with strong local credit histories can access rates 1-2 percentage points lower, typically in the 7-10% range. The gap exists because lenders view foreign borrowers as higher risk due to potential currency fluctuations, difficulty in collection, and unfamiliarity with Mexican credit systems.
Special programs for high-net-worth foreign buyers can offer rates as low as 5-7%, but these require substantial down payments of 40-50% and extensive financial documentation. Premium lenders like SOC CAF and Creditaria provide these elite programs for qualified applicants.
Variable rates exist but are less common, with most foreign borrowers opting for fixed rates to avoid peso volatility risks.
Which banks or lenders in Mexico City are actively approving mortgages for foreigners this year?
Several specialized lenders are actively approving foreign mortgage applications in Mexico City throughout 2025.
| Lender | Specialization | Key Features |
|---|---|---|
| Moxi | Digital platform | Fast approval, 15% down minimum |
| MortgageHub | Cross-border financing | USD income accepted, online process |
| HIR Casas | Developer financing | New construction focus |
| Tu Casa Express | Expat specialists | Multilingual support |
| SOC CAF | Premium lending | Low rates for qualified buyers |
| Creditaria | Alternative lending | Flexible requirements |
| Kredi | Tech-enabled lending | Quick digital approvals |
How much income do I need to prove, and do they accept foreign income or only local Mexican income?
Most Mexico City lenders accept foreign income and require proof of stable earnings that cover mortgage payments plus living expenses.
The general rule is that your total monthly debt payments, including the proposed mortgage, should not exceed 30-40% of your gross monthly income. For a typical Mexico City property costing $200,000 USD with a 25% down payment, you'd need to demonstrate monthly income of approximately $4,000-5,000 USD.
Foreign income documentation includes tax returns from your home country, bank statements showing consistent deposits, employment letters, and proof of any rental income or investment returns. Lenders particularly value borrowers with multiple income streams or professional employment with multinational companies.
Some lenders prefer a combination of foreign and local Mexican income, but it's not mandatory. Self-employed borrowers face stricter scrutiny and may need to provide two years of detailed financial records.
Do I need a temporary or permanent residency visa in Mexico to qualify for a mortgage, or is a tourist visa enough?
As of September 2025, many Mexico City lenders accept tourist visas for mortgage applications, though residency status can improve your terms.
Tourist visas (FMM permits) are sufficient for most specialized foreign lenders, but you'll need to prove legal stay and provide immigration documentation. Temporary residency (FM3) or permanent residency (FM2) status generally unlocks better interest rates and higher loan-to-value ratios.
Permanent residents have access to traditional Mexican bank products and may qualify for rates similar to Mexican citizens. Temporary residents fall somewhere in between, often receiving better terms than tourist visa holders but not quite matching permanent resident benefits.
It's something we develop in our Mexico property pack.
Don't lose money on your property in Mexico City
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What kind of documentation will lenders ask me for if I'm applying from abroad?
Mexico City lenders require comprehensive documentation packages for foreign mortgage applicants.
- Identity and legal status: Valid passport, current visa or immigration documents, and proof of legal stay in Mexico
- Income verification: Two years of tax returns, recent pay stubs or employment letters, and three months of bank statements from your primary accounts
- Credit history: Credit reports from your home country, translated if necessary, and explanation letters for any negative items
- Property documentation: Sales agreement, property appraisal, and title verification documents
- Financial assets: Investment account statements, proof of down payment funds, and documentation of any other real estate holdings
All foreign documents typically need official translation and apostille certification. The process is more streamlined with lenders experienced in cross-border transactions.
What loan-to-value ratios are realistically available right now for foreigners—70%, 60%, or less?
Foreign borrowers in Mexico City can typically access loan-to-value ratios of 70-80% as of September 2025.
Most competitive lenders offer 75-80% LTV for well-qualified foreign applicants with strong income documentation and good credit. Conservative banks may cap foreign borrowers at 60-70% LTV, particularly for investment properties or borrowers with limited Mexican credit history.
Premium borrowers with exceptional profiles can achieve up to 85% financing, though this requires significant income verification, substantial assets, and often a premium interest rate. The highest LTV ratios are typically reserved for primary residences rather than investment properties.
Developer financing programs sometimes offer more flexible LTV ratios, especially for new construction projects in prime Mexico City neighborhoods.
How long is the approval process in Mexico City for a foreigner mortgage, from application to funding?
The complete mortgage approval process for foreigners in Mexico City takes 1.5-2 months on average from initial application to final funding.
Digital lenders like Moxi and Kredi provide initial pre-approval within 24-72 hours, but full underwriting and documentation review extends the timeline. Traditional banks may take 2-3 months due to more extensive review processes and internal approvals.
The timeline breaks down roughly as follows: initial application and pre-approval (3-7 days), document collection and verification (2-3 weeks), property appraisal and legal review (2-3 weeks), and final approval and funding (1-2 weeks).
Cross-border wire transfers and currency conversion can add several days to the final funding phase, so plan accordingly for closing dates.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mexico versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Are mortgages fixed-rate, variable-rate, or mixed, and what's the typical loan term length being offered?
Mexico City mortgage market predominantly offers fixed-rate loans to foreign borrowers, with terms ranging from 10-30 years.
Fixed rates dominate because they provide payment predictability amid peso volatility and inflation concerns. Most lenders structure loans with 15-20 year terms as the sweet spot, balancing monthly payment affordability with total interest costs.
Shorter 10-15 year terms offer lower interest rates but higher monthly payments, while 25-30 year terms increase total interest but reduce monthly obligations. Variable rates exist but are uncommon for foreign borrowers due to currency and economic uncertainty.
Some lenders offer hybrid products with fixed rates for the first 5-7 years, then converting to variable, but these are specialized products for sophisticated borrowers.
What are the closing costs and extra fees I should expect as a foreigner buying property in Mexico City?
Foreign buyers should budget 3-7% of the purchase price for closing costs and additional fees when obtaining a mortgage in Mexico City.
| Fee Type | Typical Cost | Description |
|---|---|---|
| Notary Fees | 1-2% of purchase price | Legal documentation and registration |
| Property Transfer Tax | 2-4% of purchase price | Government transfer tax |
| Lender Origination | 1-2% of loan amount | Processing and underwriting fees |
| Appraisal | $300-800 USD | Property valuation |
| Legal Review | $500-1,500 USD | Title and contract verification |
| Wire Transfer | $25-100 USD | International money transfer |
| Currency Conversion | 0.5-2% of amount | Exchange rate spreads |
Can foreigners take out a mortgage in pesos only, or are USD-linked loans still an option in Mexico City?
Mexican peso (MXN) mortgages dominate the Mexico City market for foreign borrowers as of September 2025.
Most active lenders, including Moxi, MortgageHub, and Kredi, structure their foreign mortgage products in pesos to align with local property values and reduce their own currency risk. This means your monthly payments will be in pesos, regardless of your income currency.
USD-linked loans still exist through specialized cross-border lenders and some developer financing programs, but they're becoming less common. These products typically carry higher interest rates and more complex terms due to currency hedging costs.
For borrowers earning in USD or other foreign currencies, peso loans create exchange rate risk on monthly payments, but many lenders now offer payment processing services to help manage this exposure.
It's something we develop in our Mexico property pack.
What restrictions or risks should I be aware of if I buy property with a mortgage as a non-Mexican citizen?
Foreign property buyers with mortgages in Mexico City face several important restrictions and risks that require careful consideration.
Properties in restricted zones (within 50km of coastlines or 100km of borders) require a fideicomiso trust structure, which adds complexity and annual fees of $500-1,000 USD. While Mexico City isn't in a restricted zone, some surrounding areas may be.
Currency risk represents the biggest ongoing challenge - if you earn income in USD, euros, or other currencies, peso volatility can significantly impact your monthly payment obligations. A 20% peso devaluation could increase your effective payment burden substantially.
Foreclosure procedures in Mexico can be lengthy and complex, with limited recourse for lenders compared to other countries. This risk is priced into interest rates and down payment requirements. Additionally, Mexican property law differs significantly from other countries, making legal review essential before signing any mortgage agreement.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Foreign buyers can successfully secure mortgages in Mexico City, but the process requires thorough preparation and realistic expectations about terms and costs.
With proper documentation, adequate down payment, and the right lender, foreigners can access competitive financing options that make Mexico City property investment viable in 2025.
Sources
- Plalla - Mortgage for Foreigners in Mexico
- Dreams Property - Mortgage in Mexico
- Mexico Life - Mortgage Calculator
- Yave - Down Payment Requirements Mexico
- Ecovillages Mexico - Financing Options for Foreigners 2025
- Global Mortgage - US Citizens Guide to Mexico Property
- CEIC Data - Mexico Mortgage Interest Rates
- Riviera Maya Cozy - Foreigners Mortgage Mexico
- Wise - Cross-Border Mortgage Mexico
- Mexperience - Property Financing Options Mexico