This is great news for Americans, Canadians and Europeans; for the past few years, it has been becoming steadily more feasible and attractive to buy a Mexico property through a mortgage directly form a bank in this country!
The availability of Mexico mortgages is a later result of NAFTA, and the subsequent economic growth.
While restrictions are tighter than in the U.S. or Canada, many Mexico homes and condos are pre-approved, making the process easier and more direct. The key advantage of buying through a mortgage from a bank directly in Mexico is that the same property being purchased can be used as "collateral;" previously all non-Mexican buyers either bought in cash, or mortgaged a property back home, using the funds to make a cash purchase.
The disadvantages of this process were that risk in economic changes on either side of the border could effect both properties; using the same property as leverage means that all investment risk is tied into one single property.
Also, mortgages of this sort back home usually offer only 50% of the property value; a mortgage from a Mexican institution for foreigners will usually finance 70%, or sometimes even more.
There are some disadvantages to consider as well. Interest rates, credit ratings and down payment requirements are typically slightly higher in Mexico than in the U.S. or Canada. There are also tighter restrictions about which property qualifies for a mortgage.
These restrictions, on a larger economic level, and even personally at times, are a good thing; many economists indicate that the economic problems experienced in the U.S. triggering the recent recession were closely tied to a housing bubble resulting from overly loose regulations. So f ar, Mexico has avoided following this pattern, which is better for those living here.
While these issues can be taken into account when planning the property to purchase, the only factor which has no real upside is that the process is longer and tends to follow the unnecessarily complicated pattern of Mexican bureaucracy. This fact can also be planned for, but can be frustrating if buyers are not prepared for it.
On the whole, however, it is a real benefit that property buyers from the U.S., Canada and Europe have the opportunity to buy in Mexico through a mortgage. Many new developments making special arrangements with the bank to make the process easier, and promoting the option to buyers. With time, the process will continue to become more and more accessible.
TOPMexicoRealEstate.com; Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely