| Frequently asked questions on Mexico Mortgages How much down payment is required? In Mexico, the required down payment for a loan is a minimum of 25% down. This is applicable to loans under $1,000,000. For larger loans, a higher % of down payment is required. Your down payment is only required to be paid just prior to the actual closing/ funding of your transaction and we do need to source these funds. Only in the case of family can a down payment be given as a gift. Are the interest rates in Mexico higher than the US and why? Yes, they are, even though not by much. The reason for this is that it is always a higher risk for a bank to collateralize a foreign property than a local property. This higher risk equates to a higher interest rate. Rates have decreased here the last few years because loaning in Mexico is becoming less of a risk and our interest rates get more competitive every year. Is the interest on my mortgage tax deductable like my US mortgage? BCM’s residential mortgages are funded in US Dollars Collateralizing Mexico real estate available to US and Canadian citizens. The liability shows up on US credit and according to US tax law Per IRS regulation Section 163 (C), as well as Publication 936, interest paid on primary and secondary residences up to an aggregate one million dollars in loan amount is tax deductible. How long does a loan take to fund and how do I protect my interests in the contract? A loan generally takes between 60 and 90 days to fund. We always ask for a 90 day closing timeframe be placed in the contract to provide us ample time to close your loan. We also request that a 30 day financing contingency be placed in the contract to receive FULL approval from our Bank before any earnest money deposits become non refundable so as to protect your interests.
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