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Everything you need to know before buying real estate is included in our Mexico Property Pack
Foreign buyers can obtain mortgages for residential and commercial properties in Mexico, though requirements differ significantly from local buyers.
Down payments typically range from 15% to 35%, interest rates hover between 9-12% for peso loans, and mortgage terms usually span 5-20 years for non-residents. Coastal and border properties require special legal structures that affect financing options.
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.
Foreign buyers in Mexico can access mortgages through major banks and specialized lenders, with down payments starting at 15% for peso loans and 35% for USD financing.
Interest rates range from 9-12% for Mexican peso mortgages, while cross-border USD loans offer 5-9% rates for qualified US buyers as of September 2025.
| Financing Aspect | Non-Residents | Mexican Residents |
|---|---|---|
| Down Payment Required | 15-35% | 10-20% |
| Interest Rates (Peso) | 9-12% | 8-11% |
| Maximum LTV | 70% | 80-90% |
| Typical Term Length | 5-20 years | 10-30 years |
| Documentation Requirements | Extensive (2+ years income proof) | Standard (local income verification) |
| Bank Options | Limited to specialized programs | All major Mexican banks |
| Currency Options | Peso or USD (cross-border) | Primarily Peso |
What types of properties in Mexico are actually eligible for a mortgage if you're a foreign buyer?
Foreign buyers can obtain mortgages for most residential and commercial property types in Mexico, including single-family homes, condominiums, apartments, vacant land, and business properties.
The key distinction lies in location-based restrictions rather than property type. Properties within restricted zones—areas within 50 kilometers of any coastline or 100 kilometers of an international border—require special legal structures for foreign ownership.
In restricted zones, foreigners must acquire properties through a fideicomiso (bank trust) or by establishing a Mexican corporation. This legal requirement doesn't prevent mortgage financing, but it does add complexity and costs to the transaction process.
Most Mexican and international lenders will finance properties acquired through these legal structures, though they may require additional documentation to verify the trust arrangement.
As of September 2025, there are no specific restrictions on property value or size for mortgage eligibility, making everything from modest condos to luxury estates potentially financeable for qualified foreign buyers.
How much of a down payment do banks in Mexico usually require from non-Mexican citizens?
Mexican lenders typically require foreign buyers to put down between 15% and 35% of the property's purchase price, significantly higher than the 10-20% often required from Mexican nationals.
For peso-denominated mortgages, the minimum down payment usually starts at 15% of the property value. However, many lenders prefer to see 20-25% down from foreign buyers to reduce their risk exposure.
USD-denominated loans through cross-border lenders generally require larger down payments, typically starting at 35% of the purchase price. Some specialized international mortgage providers may accept as little as 25% down for highly qualified borrowers with substantial assets.
Certain lenders, such as Tu Casa Express, cap their loan-to-value ratios at 70% for foreign buyers, effectively requiring a minimum 30% down payment regardless of the borrower's qualifications.
It's something we develop in our Mexico property pack.
What are the typical interest rates right now for foreigners compared to local buyers?
As of September 2025, foreign buyers face interest rates between 9% and 12% for peso-denominated mortgages from Mexican banks, typically 1-2 percentage points higher than rates offered to Mexican nationals.
Cross-border USD loans present a more attractive option for qualified US and Canadian buyers, with interest rates ranging from 5% to 9% through specialized international lenders.
Mexican residents with permanent residency status can access the full range of local mortgage products, often securing rates between 8% and 11% for peso loans, along with more favorable terms and higher loan-to-value ratios.
The rate differential reflects the higher perceived risk of lending to non-resident foreigners, who may have limited ties to Mexico and could potentially default without the same legal recourse available for domestic borrowers.
Some international mortgage brokers offer competitive USD rates by packaging loans for sale to US-based investors, though these products typically require larger down payments and more extensive documentation.
How many years can you realistically expect the mortgage term to be if you're not a resident?
Non-resident foreign buyers can typically secure mortgage terms ranging from 5 to 20 years, with most lenders offering 10 to 15-year terms as their standard products for international borrowers.
Mexican banks rarely extend 30-year mortgages to non-residents, reserving longer terms for Mexican nationals and permanent residents who present lower default risk.
Cross-border USD mortgage providers may offer terms up to 30 years for highly qualified US or Canadian buyers, though 15-20 year terms remain more common.
Shorter mortgage terms mean higher monthly payments but significantly less interest paid over the life of the loan, which can be advantageous for buyers with sufficient cash flow.
Some specialized lenders offer interest-only payment periods for the first 2-3 years, allowing buyers to manage cash flow while establishing their presence in the Mexican market.
What documents and proof of income do Mexican lenders typically ask foreigners to provide?
Mexican lenders require extensive documentation from foreign buyers, typically including two years of tax returns, bank statements, and proof of income from their home country.
| Document Category | Required Items | Notes |
|---|---|---|
| Identity & Legal | Valid passport, visa status | Must be current and valid |
| Income Verification | 2 years tax returns, pay stubs | Must be translated to Spanish |
| Financial Records | Bank statements (6-12 months) | From primary banking relationship |
| Credit History | Credit report from home country | Some lenders accept international reports |
| Address Verification | Utility bills, bank statements | Recent proof of residence |
| Mexican Residents | RFC tax number, local bank records | Additional requirements for residents |
| Property Documents | Purchase agreement, appraisal | Property-specific requirements |
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Are there maximum loan-to-value ratios for non-residents, and what do they look like in numbers?
Mexican lenders typically cap loan-to-value ratios at 70% for non-resident foreign buyers, meaning a minimum 30% down payment is required regardless of creditworthiness or income level.
This 70% LTV limit represents a significant restriction compared to the 80-90% ratios available to Mexican residents and permanent residents who can access standard local mortgage products.
Some specialized lenders may offer up to 75% LTV for exceptionally qualified borrowers with substantial assets, though these cases are rare and typically require additional collateral or guarantees.
Cross-border USD mortgage providers often impose even stricter LTV requirements, with many capping loans at 65% of property value to compensate for currency and jurisdictional risks.
The conservative LTV ratios reflect lenders' concerns about collection and foreclosure procedures for non-resident borrowers, making substantial down payments a standard requirement across the Mexican mortgage market.
How does having or not having Mexican residency change your mortgage options?
Mexican residency status dramatically expands mortgage options, with permanent residents gaining access to nearly all local bank mortgage products at competitive rates and terms.
Permanent residents can secure loans with down payments as low as 10-20%, compared to the 15-35% required from non-residents, and qualify for mortgage terms extending up to 30 years.
Temporary residents have intermediate access, with some banks offering mortgage products though typically with slightly higher rates and down payment requirements than permanent residents.
Non-residents must rely primarily on specialized foreigner mortgage programs or developer financing, which limits their choices and often results in less favorable terms.
Residency also enables access to government-backed mortgage programs like INFONAVIT, though these are primarily designed for Mexican workers and may have property value limits that exclude higher-end markets.
Which banks or financial institutions are most active in lending to foreigners in Mexico?
The Mexican mortgage market for foreigners is served by both traditional banks and specialized international lenders, each offering different advantages and requirements.
Major Mexican banks including BBVA Bancomer, Banorte, Santander, and HSBC Mexico offer mortgage products to foreigners, though most require Mexican residency status for their standard programs.
Specialized international lenders like Global Mortgage, MortgageHub, Yave, and Tu Casa Express focus specifically on foreign buyer programs, offering both peso and USD-denominated loans without residency requirements.
Developer financing remains widely available in tourist zones and new construction projects, often providing the most flexible terms for foreign buyers purchasing directly from builders.
Cross-border mortgage companies serving US and Canadian buyers have gained prominence, offering USD loans backed by North American lending standards while focusing on Mexican coastal properties.
Are there restrictions on buying property near beaches or borders, and how does that affect financing?
Properties within Mexico's restricted zones—50 kilometers from any coastline or 100 kilometers from international borders—require foreigners to use a fideicomiso (bank trust) or Mexican corporation for legal ownership.
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.
What extra fees, taxes, or notary costs should foreigners plan for beyond the mortgage itself?
Foreign buyers should budget 4-8% of the property purchase price for closing costs and fees, significantly higher than the 2-4% typically paid by Mexican nationals.
Acquisition taxes range from 2-4% of the property value, while notary fees add another 0.5-2% depending on the property's complexity and location.
Properties in restricted zones incur additional costs including fideicomiso setup fees of $2,000-3,000 and annual maintenance fees of $500-1,200 paid to the trustee bank.
Foreign permit (SRE permit) costs approximately $1,000, and legal representation typically adds 1-2% of the purchase price for document review and transaction oversight.
Registration fees with the Public Registry of Property cost 0.5-1% of the property value, completing the substantial closing cost burden that foreign buyers must factor into their investment calculations.
Can you get a mortgage in pesos as a foreigner, or are there dollar-denominated loan options too?
Foreign buyers can choose between Mexican peso mortgages from local banks and USD-denominated loans from cross-border lenders, each offering distinct advantages depending on the buyer's financial situation.
Peso mortgages are the standard offering from Mexican banks, with interest rates currently ranging from 9-12% for foreign buyers as of September 2025.
USD loans are available through specialized cross-border mortgage companies serving US and Canadian buyers, offering interest rates between 5-9% but typically requiring larger down payments of 35% or more.
Currency risk is a crucial consideration—peso loans protect against currency fluctuations if rental income is in pesos, while USD loans may be preferable for buyers earning dollars who plan to sell within a few years.
It's something we develop in our Mexico property pack.
If you sell the property later, what are the capital gains tax implications for foreigners?
Foreign property owners face capital gains taxation of either 25% of the gross sale value with no deductions, or up to 35% of the net gain after allowable deductions.
The 25% gross option is simpler but often more expensive, as it applies to the entire sale price without considering the original purchase price, improvements, or selling expenses.
The alternative calculation allows deductions for original purchase price, capital improvements, and selling costs, but the net gain is then taxed at rates up to 35% depending on the amount.
Mexican residents with RFC tax identification numbers may qualify for primary residence exemptions that are generally not available to non-resident foreign sellers.
Additional selling costs include real estate agent commissions of 5-7%, notary fees of 0.5-2%, trust cancellation fees of $500-1,500 for restricted zone properties, and property transfer taxes of 2-4%, significantly impacting overall returns.
It's something we develop in our Mexico property pack.
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 obtain mortgages in Mexico through various channels, though they face higher down payments, shorter terms, and additional costs compared to local buyers.
The combination of 15-35% down payments, 9-12% peso interest rates, and 4-8% closing costs requires careful financial planning, but Mexico's mortgage market remains accessible to qualified international investors as of September 2025.
Sources
- Mexico Property Buying Guide
- Plalla - Mortgage for Foreigners in Mexico
- Yave - Down Payment Requirements Mexico
- Cross Border Investment - Mortgage Requirements
- Jaguar Tulum - Financing and Mortgages
- International Tax Review - Capital Gains Guide
- Mexperience - Selling Property Costs
- MexLife - How to Buy Property
- Wise - Mortgage in Mexico
- Ecovillages Mexico - Financing Options Guide