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Mexicanbill

Sep 24, 2015, 6:15 AM

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Purchasing A Home

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Is it a major problem to finance the purchase of a home here in Mexico through a bank? I hear the interest rates are very bad. We are considering purchasing a house but would need to borrow to do that with the plan of paying off the loan early without a penalty for doing so....any suggestions
Chef William aka MexicanBill



DigYourself

Sep 24, 2015, 10:46 AM

Post #2 of 4 (5104 views)

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Re: [Mexicanbill] Purchasing A Home

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- what kind of Visa are you coming in with ?
- I would suggest you rent for at least a year before purchasing a house.
- I think the interest rate for a mortgage is like 10+ % plus fees
- we now own our own house - but the previous owners had this house on the market for 2+ years before we came along.
- we didn't purchase the house we rented - but I'm pretty sure the owner would have held the paper had we wanted to buy.


rvgringo

Sep 24, 2015, 1:56 PM

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Re: [Mexicanbill] Purchasing A Home

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If you have not been a long term permanent resident of Mexico, have lots of assets & local references, and don‘t really need the loan, then it might be very difficult instead of virtually impossible for an extranjero. The interest rates are terrible and one slip and you are toast.


Gringal

Sep 25, 2015, 9:50 AM

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Re: [rvgringo] Purchasing A Home

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There have been posts on the various web boards re the advantages of owning vs. renting in Mexico and I'd advise anyone who isn't in a position to pay cash to research the pros and cons.

The bank rates are outrageous. They show no mercy to defaulters.

There's a lot to be said for renting in a market where sales are slow (as in years), because if you have an unexpected event in your life that requires you to be somewhere else......as a renter, you can bail. As a homeowner with a mortgage, it's another matter.

I'm a homeowner, but there are times I wish I were a renter. (When the plumbing falls apart, the roof leaks, mold forms on a wall or my neighbor sells and a three story structure is built looking into my patio).
 
 
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