Mexico Mortgage Interest Rates on the Rise

(November 2011)

The chart below reflects the historic view of the high and low end of the Mexican USD Mortgage Interest Rates based on all initial lenders participation in the mortgage market, and present lenders actually doing mortgages for the purchase of residential property by Americans and Canadians in Mexico.

I would like to emphasize also, that not only interest rates are on the rise, but that lenders are toughening their lending standards and criteria in terms of qualifying FICO and BEACON scores and Loan To Value Mortgage Financing Percentages.

We will perhaps not see 75% LTVs, or 25% Down Payment requirements for a while, and the initial down payment for these type of mortgages will start at 35%.

FICO and BEACON scores are still at 680 for one lender, but has been increased to 720 by another.

Other qualifying terms and conditions have also been modified, such as the discontinuance of the Vacant Lot Loan Program.

How will these changes and modifications will affect the present market?  remains to be seen.  But one thing we can be sure of.  The number of qualified individuals will greatly diminish.  This based on the present reality of the USA Market.  Canadians citizens and residents, on the other hand, seem to be, generally speaking, in a somewhat better position in terms of meeting the basic mortgage qualification standards based on the present flux of mortgage clients we are seen in the area.

This is a good time to obtain a mortgage pre-approval (pre-qualification) if you are thinking of purchasing a property in Paradise (Any of Mexico’s Beach Resort Areas), sometime in the future.

For further information, feel free to contact us.

This report courtesy of Enrique (Henry) Saldana - Mexico Realty Solutions;;
Tel: (984) 147-2388 - Cel: (984) 111-8743.


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