It’s estimated that only 10% of home purchases in Mexico involve a mortgage. Stated another way, 90% of Mexican property deals are cash transactions.
For foreigners who move from countries where taking out a mortgage is typical and straightforward, that may seem hard to believe.
The reason mortgages are so uncommon is that Mexican banks have historically operated very conservatively, viewing loans to ordinary people as too risky. As a result, most buyers in Mexico, even today, scrape together the necessary funds from savings and perhaps the sale of investments at the higher end of the spectrum.
While real estate agents and developers may try to convince you otherwise (because they want your money), mortgages are still difficult to get as a foreigner, even one with legal residency. That said, it’s not impossible.
Below is an overview of the landscape in 2025 for foreigners looking to buy property in Mexico with a mortgage.
Current Mortgage Rates in Mexico
To a gringo, mortgage rates in Mexico may seem more like credit card rates. In 2025, the standard mortgage loan in Mexico had an average total percentage rate (TAP) of 14%. The minimum APR was 11.2% while the maximum was around 28%, according to financial aggregator platform dinero.mx.
This equates to a staggering amount of interest over the lifetime of the loan.
To illustrate, taking out the equivalent of a USD $250,000 mortgage for a property that costs USD $450,000 with a 14% interest rate over 15 years, the borrower would make monthly payments equal to USD $3,329, not including homeowner’s insurance or taxes. Over the lifetime of the loan, this borrower would pay the lender USD $599,284, including about USD $149,000 in interest!
Ouch.
Interest rates will (of course) vary depending on the bank doing the lending, the borrower’s credit history, and other factors.
Who Offers Mortgage Loans in Mexico?
In general, U.S.-based lenders do not finance properties in Mexico. To obtain a mortgage here, you will need to work with a Mexican bank that originates loans.
While I am not endorsing any of the traditional banks, the most active participants include BBVA México, Banorte, Santander México, and HSBC México. These are, incidentally, the largest banks doing business in Mexico, so naturally they’re among the biggest providers of mortgage loans.
Later in the article, I’ll share some alternative options to explore if going the traditional route doesn’t appeal to you. In recent years, Mexico has thankfully seen a handful of startups emerge to address this underserved market for housing finance.
Mortgage Loan Terms in Mexico
In addition to high borrowing costs, down payments are generally much higher in Mexico as compared to the U.S. Putting down at least 30% of the purchase price is standard, with some lenders requiring 40% or more.
In very rare cases, you may find a lender willing to accept a 15% down payment, but this is not the norm and should not be expected.
Mortgage loans for property purchases in Mexico are granted in Mexican pesos, regardless of where your capital is coming from as a foreign buyer. This means that if you plan to use dollars, pounds, or euros to buy property, it will have to be converted into Mexican pesos to fund the transaction.
Mexican banks typically offer loan terms ranging from 10-25 years. For gringos accustomed to stretching out their borrowing over 30 years, this can come as another shock. The fact is, the U.S. is the only country in the world where a 30-year loan is the standard offering.
How Long Does It Take to Get a Mortgage in Mexico?
Being approved for a mortgage loan from a Mexican bank can take a while. Applicants should plan on the process taking at least 3 months, though in reality it can take 4 or 5, depending on the bank. Yes, these things happen here on Latin time.
As I mentioned earlier, traditional Mexican banks are very conservative, so many loan applicants get rejected. In truth, the only reason my husband and I were able to buy our current home in Guadalajara is that another couple’s loan fell through.
We were waiting in the wings and were able to move quickly because we didn’t need a loan.
If you’re shopping for a Mexican property in a strong market (like we were in 2022), needing a loan can doom your chances. But this isn’t the case in 2025, which I’ll explain a bit more below.
You may also notice when shopping for homes in Mexico that many home sellers refuse to deal with buyers who require loans to finance their purchase. That’s because they know how slow and cumbersome the process is – and may not feel like waiting around. But then again, they might — because it’s Mexico.
With regard to current conditions, the Mexican housing market has recently hit the skids due to zero GDP growth over the past five months and ongoing tariff uncertainty dispatched from up north.
According to INFONAVIT, between January and April 2025, mortgage originations in Mexico (i.e, the volume of loans granted) fell due to stubbornly high interest rates alongside high property prices. Mortgages issued to buy new homes in Mexico dropped 7.3% during this period, while those for existing homes fell 7.5%, as demand shifted to financing less costly land purchases.
Requirements for Getting a Mortgage in Mexico as a Foreigner
Most banks in Mexico will only lend money to foreign nationals who hold permanent residency status. Those with temporary residency – and even tourists – while eligible to buy property in Mexico, generally have less chance of acquiring credit here.
For a high-level overview of buying property in Mexico as a foreigner, please check out my previous article on the subject.
While things may be loosening, it’s generally difficult for foreigners to get mortgages if they have no credit history in Mexico. This is because your credit history from another country is not relevant to a Mexican bank when evaluating your creditworthiness. So if you’ve lived here for minimal time (or not at all) and do not hold a credit card issued by a Mexican bank, you’re viewed as a higher credit risk.
If you’d like to learn how to get a Mexican credit card as a foreigner, check out my previous article on the topic.
The mortgage application process typically involves approval from the bank’s credit department, property appraisal, and legal review. But since every bank’s process is different, you should solicit the exact requirements from whatever bank you consider working with.
Credentials foreign buyers are likely to need include:
- Proof of income: usually recent pay stubs, tax returns, or income statements.
- Credit history: A good credit score is essential.
- Down payment: generally around 30% of the property value.
- Identification: official ID (passport, CURP)
- RFC number (Mexican tax ID).
- Property documentation: legal proof of the property being financed.
- Employment verification: employment letter or contract.
- Medical certificate confirming that the applicant is in good health.
- Credit reference letter from a financial institution you do business with abroad.
Photo: LiveWellMexico
Property Insurance
Like in many other countries, traditional mortgage lenders in Mexico require that borrowers hold homeowner’s insurance. This must be secured before your loan can be approved.
If you buy property without a mortgage, the choice of whether to buy an insurance policy is up to you.
Financing a Property Purchase Without a Traditional Bank Mortgage
While I am not endorsing any of these methods or being paid to mention them, there are some alternative options when it comes to financing a property purchase in Mexico. These lenders play by different rules, so it’s critical (as with any financial arrangement) to do your own due diligence before signing contracts.
Developer Financing. Buying a newly built property directly from a developer is another path to home ownership for foreigners in Mexico. To attract buyers, most developers accept staggered payments for the purchase, which exempts a buyer from coming up with 100% of the funds needed all at once.
For example, you might be asked to put 30% down when you sign a contract, with additional payments required in subsequent 6 or 12-month intervals, with those future payments being financed by the developer. Because these loans aren’t done through traditional banks, they’re likely to be done at even less favorable interest rates. Be sure to read the fine print to uncover other “gotchas” like pre-payment penalties or hidden fees.
Because I’ve heard many horror stories over the years about Mexican developers who take investors’ money and never deliver a livable property, I would steer clear of any real estate project not yet built. Legal recourse in Mexico for property deals gone sideways is slow and arduous—and just not worth the risk in my opinion.
Cross-Border Mortgages. A newer option in the housing finance arena is cross-border mortgages. It involves a bank with operations in your home country (e.g., the U.S. or Canada) lending money for a property purchase in Mexico using a dollar-based mortgage originated in their home country.
These lenders are generally open to lending to those who have legal residency in Mexico or are here on tourist visas. However, those with non-resident status typically face higher interest rates.
One company in the cross-border mortgage business is Moxi, which began operations in 2017. According to Moxi’s website, they offer dollar-based mortgages to foreigners in Mexico for up to 30-year terms at fixed interest rates. The catch is that the minimum loan size is $250,000 USD, and borrowers are expected to put a minimum of 35% down on their purchases.
In other words, cross-border mortgages are aimed at people looking to buy properties that fall squarely within the luxury category (above USD $460,000), at least by Mexican standards.
Fintech. Coming out of the pandemic, several startups emerged with the intention of catering to the housing needs of digital nomads. Yave is one new business offering digital mortgages to foreigners looking to buy Mexican properties.
To be eligible for a digital mortgage, you must have legal residency in Mexico (temporary or permanent) and a RFC number (tax ID) from Mexico’s tax authority (known as SAT). A lack of credit history in Mexico is apparently not an impediment to foreigners seeking one of Yave’s loans.
Their loans are available up to 20-year terms at a fixed interest rate, with only 15% down, according to Yave’s website. As of 2025, applicants must also meet these criteria to qualify:
- Have proof of a minimum monthly income of $1,170 USD
- Be between 25 and 65 years old
- Have a good credit history in the U.S. (minimum score not disclosed).
Foreigners Buying Property in Mexico Also Face Currency Risk
Apart from the previously mentioned cross-border loans, mortgages on Mexican properties are always financed in pesos. This adds another layer of uncertainty and risk to a property purchase in Mexico.
Though in truth, this risk exists with or without a mortgage.
If you plan to finance your purchase with USD, Canadian dollars, Euros, or whatever, and the peso strengthens while you wait to hear from the lender, your real purchase price just increased, and — can even impact your creditworthiness in the eyes of the lending bank.
One way to manage this risk is with a forward contract, which locks in the exchange rate for a period of time. One company that offers them (and I fully endorse because I use them myself) is Wise.
In summary, buying property in Mexico is not for the faint of heart. If you’d like to learn more, check out my previous articles on shopping for a home and closing on a property in Guadalajara, Mexico.
