A. Yes! Purchasing property in Mexico by foreign buyers is allowed under Mexico’s constitution. However, the Mexican Constitution restricts ownership of real estate by foreigners in any area located within 100 kilometers of any Mexican border, and within 50 kilometers of Mexico’s coast. Foreigners wishing to purchase properties in this zone just need to use a bank trust called a ‘fideicomiso’. This method of ownership does not restrict your rights to use, enjoy, or sell the property and are utilized by tens of thousands of foreign owners just in the Puerto Vallarta area alone.
Buying Real Estate in Mexico
A. Mortgages to assist in purchasing Mexico real estate are available through a number of providers, but primary three lending sources: Scotia Bank, Bancomer and Banorte through their US affiliate International Bank based in San Antonio, Texas. Most lenders offer a range of interest rate and point combinations to meet needs of individual borrowers. As a general rule, lenders require a minimum of 20% to 25% down with the balance financed. Interest rates are higher when purchasing real estate in Mexico and current rates for a 30 year fixed rate mortgage run around 8%.
A. About as long as it does in Canada or the U.S. Plan on one week for pre-approval, and two to three months to arrange the financing before completing the purchase of your property.