In practice, the decision is rarely straightforward. While building can be cheaper in certain circumstances, real-world experience shows that unexpected costs, delays and disputes are common. Buying an existing home, by contrast, often offers greater predictability, but it is not without its own risks.

Why building looks cheaper on paper

Early comparisons typically focus on construction cost per square meter versus the sale price of completed homes. This approach leaves out a range of expenses that tend to emerge only once a project is underway.

One of the most common surprises involves site preparation. A lot may appear ready to build, only for excavation to reveal extensive rock, large stones or unstable soil. Removing rock or cutting into bedrock requires specialized equipment and additional labor, costs that are rarely included in initial estimates. In several projects, unforeseen site preparation has added weeks to construction timelines and significantly increased overall budgets.

Land services are another frequent source of unexpected expense. Buyers may assume water and electricity connections will be simple, only to discover that trenching, transformers, permits or negotiations with neighbors are required. In some cases, fees are collected for services that are delayed or never fully provided, leaving buyers to resolve issues after construction has already begun.

Disagreements over finishes are also common once a budget is set. Initial estimates often assume basic finishes, while buyers expect higher-quality materials once construction is underway. Tile, cabinetry, windows and fixtures that appear standard to a contractor may not meet a buyer’s expectations. Resolving these differences usually means upgrading materials mid-project, which can quickly push costs beyond the original budget and create tension between owners and builders.

Design and permitting can introduce further complications. A project that appears simple may require revisions to comply with local regulations or structural requirements. While permit fees themselves are typically modest, delays during this phase can halt progress for months. During these pauses, material prices may increase and contractors may take on other work, extending timelines even further.

Time is often the most underestimated factor. Construction schedules frequently extend beyond original projections due to weather, holidays, labor availability and supply delays. In some cases, projects expected to take less than a year extend far beyond that. During this time, funds are tied up in construction while owners may continue paying rent or maintaining another property.

The advantages and limits of buying an existing home

Buying an existing home might involve a higher upfront price, but it offers clarity. The purchase price is known, utilities are already connected and permits are in place. The property can be evaluated as a complete package before committing to the purchase.

However, buying a finished home does not guarantee the absence of surprises. Hidden defects such as drainage problems, aging electrical systems, plumbing issues or structural concerns may not be immediately visible. Even with inspections, some problems only become apparent after living in the home through different seasons or weather conditions.

Renovations, if needed, are typically easier to plan than a full build. Even major remodels tend to have clearer scopes and timelines. Improvements can often be completed in phases, allowing costs to be spread over time. In many cases, owners can live in the home while renovations are underway.

So which option makes sense?

Building can be deeply rewarding when done well. Buyers who work with a well-respected architect and a proven construction team — particularly professionals experienced in working with foreign clients — often report positive outcomes. Clear contracts, detailed specifications and realistic budgets can significantly reduce misunderstandings. Many people have built homes in Mexico that meet or exceed their expectations and are genuinely thrilled with the results.

At the same time, building requires patience, involvement and a tolerance for uncertainty. Buying an existing home generally offers a faster path to occupancy, but it does not eliminate risk. Hidden defects and unforeseen repairs can still arise.

The more useful question is not whether building or buying is inherently better, but which approach aligns best with a buyer’s expectations, risk tolerance and level of involvement. Both paths can lead to excellent results when approached with realistic assumptions and the right professional support.

Glenn Rotton is a real estate agent with eight years of experience in San Miguel de Allende. Originally from Seattle, he has lived in Mexico for twelve years with his husband, Kiang Chong Ovalle, and their dog, Angus. Read more about Glenn here.

The post Is it cheaper to build or buy in Mexico? The answer may surprise you appeared first on Mexico News Daily

Although Mexico allows nonresidents to own real estate, holding legal residency often simplifies the process and can significantly affect capital gains tax obligations at the time of sale.

How to get legal residency

Mexico offers two main residency options: temporary and permanent. Both allow foreigners to stay in the country beyond the 180-day tourist permit, but each category carries different expectations and benefits.

Temporary residency is generally issued for one year at the beginning of your immigration to Mexico and may be renewed for up to four years. After that period, most residents become eligible to convert to permanent residency, which does not expire and removes the need for renewals. Permanent residents may work in Mexico without obtaining an additional work permit, although they must register with the tax authority and notify immigration afterward.

In all cases, the residency process begins at a Mexican consulate outside of Mexico and is completed at an immigration office (INM) once the applicant enters the country with the approved visa. 

Some consulates will issue permanent residency directly — for example, to retirees, spouses of Mexican citizens, or parents of Mexican-born children. Many consulates, however, decline to grant permanent residency to applicants below retirement age the first time around unless they qualify through family relationships or specific categories. 

In some cases, applicants who already hold temporary residency and live in Mexico may be permitted to convert to permanent residency earlier than the four-year period, depending on the criteria applied at their local immigration office.

What you’ll need to apply

The financial requirements for residency are based on either monthly income or savings and investments. These thresholds, published by the Secretaría de Relaciones Exteriores, vary slightly between consulates and may change at any time because they are tied to Mexico’s minimum wage or UMA values — the latter being a monetary number updated annually that is used to calculate fines, payments and tax obligations in Mexico. 

Under the commonly applied standards, temporary residency generally requires a monthly income of about US $4,393 or an average balance of more than $73,215 over 12 months. 

Permanent residency typically requires a monthly income above US $7,322 or an average balance above $292,859 over 12 months. All financial documents must match the applicant’s passport information exactly, without any variations in spelling or punctuation.

At a Mexican consulate outside the country, applicants present their financial documents, identification and any materials related to employment, investment or family ties. If the application is approved, the consulate places a visa sticker on the applicant’s passport. This visa allows entry into Mexico for the second phase of the process, which must be completed within a limited number of days. 

Once inside the country, applicants visit the National Migration Institute (INM) to submit photographs, fingerprints and final documents. Temporary residents renew this information annually; permanent residents do not.

The advantages of residency when buying and selling property

Residency is not required to purchase property in Mexico. Foreigners may buy real estate anywhere in the country, including along the restricted coasts and borders, which technically is off-limits to foreigners. In these restricted zones, however, non-Mexicans typically use a fideicomiso, a bank trust that legally holds title on behalf of the foreign buyer, allowing a purchase. 

Outside the restricted zones, property can be titled directly in the buyer’s name.

Even though residency is not a prerequisite for ownership, and foreigners may purchase real estate with only a valid tourist entry card, having a residency card can make transactions smoother. 

Banks, escrow companies and notaries frequently prefer a residency card for identification. Residency also eliminates concerns about leaving the country when a tourist entry card expires, which can be disruptive during closings, renovations or long-term stays. 

Avoiding capital gains tax

The most significant advantage of residency appears when selling property. Under Mexican tax law, temporary and permanent residents may qualify for a full or partial exemption from capital gains tax when selling their primary residence. For many homeowners, this exemption represents substantial savings, particularly in cities where property values have appreciated quickly. 

Non-residents, by contrast, generally face much higher tax liabilities: They may be taxed at a flat 25% of the total sale price, with no deductions, or at approximately 35% of the net gain, depending on how the notary calculates the transaction.

To qualify for the capital gains exemption, however, the seller must meet several conditions: 

• The property must be the seller’s principal residence, not a vacation home, rental investment or raw land. 
• The seller must be able to prove occupancy, often through recent utility bills, a residency card, voting documents — in the case of Mexican citizens — or other forms of acceptable proof. 
• The seller must not have used the exemption on another property within the period allowed by law, typically once every three years. 

When all requirements are met, the notary may apply the exemption, reducing or eliminating the capital gains tax due.

Nonresidents, including foreigners who rely on tourist permits, generally do not qualify for this exemption and often face significantly higher tax liabilities at closing. For long-term foreign residents who intend to eventually sell their home in Mexico, obtaining residency well in advance makes sense.

Not just at tax time: A residency card makes daily life easier 

Residency also simplifies many aspects of daily life for foreign homeowners. It allows easier access to banking, facilitates the registration of utilities and services and supports compliance with tax obligations related to rental income. While nonresidents can handle these tasks, the processes tend to be more straightforward for those with a residency card.

For many foreigners, the decision to pursue residency depends on how they plan to live in Mexico. Buyers who expect to spend most of the year in their home, or who anticipate selling it in the future, gain the most from being a legal resident. Investors who plan to manage multiple properties or conduct long-term business in Mexico also benefit from holding residency.

All applicants should keep in mind that immigration rules, UMA values, minimum wage-based calculations and financial thresholds can change at any time. Unlike what you may be used to back home, requirements also vary from one consulate to another and from one immigration office to another in Mexico. Before applying, it is important to confirm up-to-date requirements through official channels or with qualified professionals.

Glenn Rotton is a real estate agent with eight years of experience in San Miguel de Allende. Originally from Seattle, he has lived in Mexico for twelve years with his husband, Kiang Chong Ovalle, and their dog, Angus. Read more about Glenn here.

The post Residency in Mexico: What foreign buyers and sellers need to know appeared first on Mexico News Daily

On the surface, it may seem unfair. If the real estate agent didn’t bring the buyer, why should they receive anything close to the full fee? But in Mexico’s real estate system, the answer has less to do with who found the buyer and everything to do with the structure of the transaction, the legal responsibilities involved and the significant amount of professional work that follows the moment an interested buyer appears.

How selling your home works in Mexico

This is not an issue of an agent collecting a fee for doing nothing. It is an issue of the agent stepping into the role of both the seller’s representative and the buyer’s representative at the same time. That remaining 5% is the fee that covers both sides of the transaction, along with all the legal and logistical responsibilities that come with it.

The starting point is understanding how listing agreements work in Mexico. Most professional real estate agencies use an exclusive right-to-sell contract. This type of agreement, widely used across the country, states that the agent is owed a commission regardless of who finds the buyer. The reasoning is simple: the listing agent invests in photography, marketing, online syndication, signage, professional networks and MLS exposure. They are also the person responsible for coordinating the transaction from the moment a buyer appears until the closing is complete.

In an ordinary transaction, where another agent brings in the buyer, the 6% commission is split — typically 3% to the listing agent and 3% to the buyer’s agent. But when the seller finds the buyer, the agent often reduces the fee to 5%. That reduction reflects savings from not having to split the commission; it is not a penalty or a bonus. It is simply the amount required to cover both sides of the transaction.

All the work that goes into facilitating the sale

What many sellers don’t realize is that finding the buyer is only a small part of the process. Most of the work — and the bulk of the responsibility — begins after a buyer is identified. At that point, the listing agent steps fully into the role of the seller’s representative, managing the transaction from beginning to end. This includes verifying documents, coordinating with attorneys and the notary, negotiating terms, ensuring compliance with anti-money-laundering rules, handling escrow and making sure all deadlines are met.

On the seller’s side alone, the agent performs extensive work. Before an offer even appears, the listing agent is responsible for pricing strategy, creating a competitive market analysis, arranging professional photography, writing the property description, uploading the listing to the MLS, coordinating showings, filtering inquiries, providing feedback from potential buyers and marketing the property across various platforms. These steps require time, expertise and often out-of-pocket expenses.

Once the seller has a buyer, the responsibilities intensify. The agent drafts or reviews the offer, advises the seller on the terms, negotiates on their behalf, verifies documents such as the deed, water account history, property taxes, Homeowners Association (HOA) statements, and cadastral information, and coordinates with the lead attorney. The agent verifies the buyer’s funds, opens escrow accurately and makes sure all contract terms are clearly understood and fulfilled. 

This agent guides both parties through signing the promise of sale, oversees compliance with consequences clauses and prepares the seller for closing at the notary’s office. Even after closing, the agent often assists with the handover of the property, final utility readings and inventory checks.

Your agent also represents the buyer

But when the seller brings the buyer, the listing agent must also step into the shoes of the buyer’s agent. This can be an even more demanding set of responsibilities. The agent must educate the buyer about the purchase process in Mexico, explain closing costs and taxes, coordinate inspections or surveys, guide them through escrow procedures and ensure the buyer understands deadlines, penalties and documentation requirements. Agents must also help the buyer with issues such as obtaining an RFC, setting up a fideicomiso (if the buyer is a foreigner purchasing in the restricted zone) and provide access to the property for any necessary visits.

The agent must keep both sides aligned, informed and on schedule. That’s who is responsible for avoiding misunderstandings, documenting everything in writing and ensuring that no step is missed. If a mistake is made during this process — such as an incomplete document, a missed payment deadline or inaccurately drafted escrow instructions — the consequences can be significant, both legally and financially.

The notary public oversees the legal validity of the closing, but the notary does not act as a transaction manager, negotiator or representative for either side. That role falls entirely on the listing agent when no buyer’s agent is present.

Liability of the listing agent

It is also important to recognize the level of liability the agent assumes. The listing agent is accountable for the accuracy of the listing, the integrity of the process, all communication with attorneys and the notary, and the handling of all contractual deadlines. If something goes wrong, the agent is the one expected to provide explanations, corrections and solutions. The commission is not only payment for service. It’s also payment for risk.

Some sellers, understandably, feel that finding the buyer should reduce the agent’s fee even further. Considering workload and responsibility, the 5% commission is a discount versus the standard model. In the traditional 6% arrangement, the listing agent receives only 3%. In the “seller brings the buyer” scenario, the agent receives 5% but absorbs the workload of both sides. The fee is proportionate to the services provided.

Removing the agent from the transaction altogether introduces serious risk. Many complications that arise during closing are not obvious to someone unfamiliar with Mexican real estate practices: missing municipal documents, unpaid water accounts, incorrectly registered additions to the property, mismatched identification numbers or a buyer who underestimates the cost of closing. These issues can stall a transaction or put the seller in legal jeopardy. A professional agent prevents these problems or resolves them quickly when they arise.

What the commission fee really covers 

Ultimately, the 5% commission is not a fee for “finding the buyer.” It is the fee that covers the full representation of both parties, from negotiation to legal coordination to closing. It ensures a smooth, secure and professionally managed transaction that protects the seller’s interests and guides the buyer through a complex process. When viewed in that context, the commission is not only justified — it is essential to a safe and successful sale.

Glenn Rotton is a real estate agent with eight years of experience in San Miguel de Allende. Originally from Seattle, he has lived in Mexico for twelve years with his husband, Kiang Chong Ovalle, and their dog, Angus. Read more about Glenn here.

The post Why your real estate agent in Mexico still gets a commission when you find the buyer appeared first on Mexico News Daily

For many foreign buyers, the final amount they pay at closing ends up higher than expected simply because they didn’t budget for all the details that go into purchasing a home here. Understanding those costs up front can make the process less stressful and help you make better financial decisions.

Closing costs: What to expect

Closing costs are generally higher in Mexico than in the United States and can vary depending on where you buy. In San Miguel de Allende, for example, they typically range between 5% and 6% of the purchase price, but for Querétaro, barely an hour away geographically, the percentages tend to run higher — closer to 8%.

These amounts do not include any loan origination fee a buyer might pay when financing a purchase. For example, if you use a U.S.-style mortgage from a lender specializing in foreign buyers, there may be an origination fee in addition to regular closing costs. That means your total costs could rise to around 8% or 9% of the property’s price.

Buyers are responsible for all closing costs in Mexico, while sellers typically pay the real estate commission. This division of costs is standard practice across the country.

What’s included in closing costs in Mexico for real estate

Closing costs generally cover three main categories:

Acquisition Tax: A government tax charged when a property changes ownership. This is similar to a transfer tax or stamp duty in other countries.

Notary Fees: All real estate transactions in Mexico must be formalized before a notary public (notario público). The notary’s office verifies the title, oversees the legal transfer, collects taxes and registers the sale with the government. Fees vary slightly by notary, but they’re generally consistent within a region.

Legal Fees: Many buyers also pay a lead attorney’s fee, which covers legal review of title documents, due diligence and administrative fees for the attorney’s time in coordinating between the notary, buyer and seller.

These costs are typically bundled into your final statement at closing, so it’s important to review the breakdown carefully. Most notaries and attorneys in a given region follow similar fee structures, so significant variations from the norm should raise a red flag. A competent realtor should be able to give you a good idea of what the norm is for your area.

Negotiating the price

Home prices in Mexico are often negotiable, and your real estate agent can assist you with negotiations. It’s common to see final sale prices come in at 5% (or maybe a little more) below the initial asking price, depending on market conditions, property age and seller motivation.

Working with a local agent who understands the market can help you determine what’s reasonable to offer. While bidding wars are rare in most areas, desirable homes — especially in popular locations  — can still attract multiple buyers, so flexibility is key.

Furnished or turnkey homes

One pleasant surprise for many foreign buyers is that homes in Mexico are often sold furnished, or even turnkey, meaning they come fully equipped and ready to move in. “Turnkey” usually means everything is included: furniture, appliances, kitchenware and sometimes even artwork and linens. You might only need to unpack your clothes and toothbrush before settling in.

That can be a real advantage for buyers relocating from abroad, as furnishing and outfitting a home in another country can take time and effort. However, it’s always wise to confirm in writing exactly what’s included. Some sellers remove personal items or heirlooms in a home before closing, so make sure your purchase agreement clearly states what stays with the property. 

If you’re buying an unfurnished home — or just want to bring some of your stuff with you — Mexico allows foreigners with a recent visa a one-time permit to import their personal possessions without paying any duties, which means you can also bring items from home with you in the move — even large items like furniture and a car. However, customs agents at the border have complete discretionary authority, so be aware that if they believe any of your items are brand-new, they may insist on charging you import duties on those items. 

After the purchase: Property taxes

Once you’ve closed, you’ll encounter another pleasant surprise: Property taxes in Mexico are extremely low compared to the United States, Canada or Europe.

In many cities in Mexico, annual property taxes (known as predial) can often be paid online, and the amounts are modest — sometimes only a few hundred dollars a year, depending on the property value and location. This low tax burden is one reason Mexico continues to attract retirees and second-home buyers from abroad.

Still, it’s important to stay current with your payments. Late fees and penalties can add up over time, and unpaid taxes can complicate future sales.

Fideicomisos: What coastal buyers need to know

If you’re purchasing a home near Mexico’s coastline or within 100 kilometers of a foreign border, you’ll need to establish a fideicomiso — a bank trust that holds the title on your behalf. 

Under Mexican law, foreigners cannot directly own property in these restricted zones. However, a fideicomiso gives you full control over the property, including the right to sell, lease or pass it on to heirs, who can easily renew the fideicomiso.

According to Christina Larson of Boardwalk Realty in Puerto Vallarta, one of Mexico’s most active coastal real estate markets, where fideicomisos are required, setting up the trust costs around US $2,000, with annual maintenance fees of about $500. This fideicomiso lasts 50 years and can be renewed for another 50 when it expires.

While it adds another step to the process, Larson explained that a fideicomiso is straightforward once you’ve chosen a bank to administer the trust. It’s a well-established system that thousands of foreign homeowners in Puerto Vallarta and other coastal resort cities use without issue.

Renovation and building costs

For buyers interested in renovating an older home — or building one from scratch — costs in Mexico are generally significantly lower than in other parts of North America and Europe. Labor is more affordable, and materials can often be sourced locally.

In most cases, you’ll work with an architect who has his own construction crew. The key is to find someone reputable who understands both your vision and the local building codes.

Renovation projects in Mexico can be rewarding, particularly if you appreciate the country’s architectural styles and craftsmanship.

Why local expertise matters

Real estate markets in expat enclaves in Mexico have often adjusted themselves to suit attractive foreign buyers, so buying in these places may feel rather familiar — especially to Americans and Canadians. But there are still key differences that make it advisable to work with a knowledgeable local realtor.

A local agent can help you:
1) Understand the true costs of purchase, including taxes and fees.
2) Negotiate effectively in the local market.
3) Coordinate with trusted notaries, attorneys and escrow services.
4) Guide you through cultural and procedural differences that might otherwise cause delays or misunderstandings.

Mexico’s real estate market operates smoothly when all parties know the rules and communicate clearly, but it’s not identical to systems outside the country. Having the right guidance from the start can save time, money and stress.

The bottom line

Buying a home in Mexico remains an appealing and attainable goal for many foreigners, but it’s important to go in with open eyes and a well-planned budget. Between acquisition taxes, notary and legal fees, and possible financing costs, closing can add anywhere from 5% to 10% to the total purchase price.

Factor in these costs from the start, confirm what’s included in your purchase, and rely on an agent you trust to guide you through the process. With the right preparation, owning a home in Mexico can be a rewarding experience and a sound investment.

Glenn Rotton is a real estate agent with eight years of experience in San Miguel de Allende. Originally from Seattle, he has lived in Mexico for twelve years with his husband, Kiang Chong Ovalle, and their dog, Angus. Read more about Glenn here.

The post The real costs of buying a home in Mexico appeared first on Mexico News Daily

That reality is beginning to shift. With U.S.-style financing models entering Mexico’s real estate landscape, buyers now have new options for purchasing property — particularly in high-demand markets such as San Miguel de Allende, Los Cabos and Puerto Vallarta. While still a niche part of the market, the availability of structured lending could gradually change how and who buys homes in Mexico.

Until recently, the vast majority of real-estate transactions in Mexico were completed entirely in cash. The process was quick and relatively simple. However, it excluded many would-be buyers who preferred or needed financing. Mexican banks generally wouldn’t lend to foreigners because they lacked a local credit history or income in pesos, and properties in restricted zones (near the coast or borders) required a fideicomiso — a bank trust structure that added even more complexity.

Developers occasionally offered short-term payment plans, but long-term, U.S.-style mortgages were essentially nonexistent. As a result, Mexico’s housing market largely catered to cash-ready retirees and investors.

The new landscape of U.S.-style financing

That situation is now evolving. Companies such as MOXI Mortgage International, MEXLend, and HIR Casa are introducing mortgage products designed for foreign buyers, especially Americans who want to finance property in Mexico rather than pay entirely in cash.

During a recent meeting with Victoria Ávila, manager of MOXI’s San Miguel de Allende branch, and María Ocampo, manager of the company’s Puerto Vallarta branch, the lender shared details about how its model is expanding across Mexico.

MOXI loans are available exclusively to U.S. citizens and underwritten using familiar U.S. standards. Borrowers apply in English, submit American financial documents and repay their loans in U.S. dollars. The company offers three types of loans: traditional mortgages for new purchases, refinancing loans and an “Anywhere Loan,” an unsecured product of up to US $200,000 for borrowers who already own property but need liquidity for improvements or other investments.

The availability of mortgage loans

MOXI’s minimum mortgage loan amount is US $250,000, targeting mid- to high-value properties over US $350,000 in value. Loans carry a 2.99% origination fee, charged in addition to the usual closing costs in San Miguel de Allende, which average around 5.5% of the purchase price. Terms extend up to 30 years, a rarity in Mexico’s financing market.

To broaden access, MOXI is partnering with HIR Casa, a Mexican financial institution that offers smaller loans and financing to non-American buyers. HIR’s programs typically run up to 10 years, filling a gap for buyers who don’t qualify for MOXI’s larger, dollar-denominated loans.

Meanwhile, brokers such as MEXLend provide mortgage options from multiple lenders, offering both peso- and dollar-denominated loans to domestic and international clients. Together, these institutions signal that Mexico’s property market is becoming more sophisticated, with financing alternatives slowly replacing the long-standing “cash only” model.

A potential shift in the market

Local professionals say the growth of mortgage products may not transform the market overnight, but it’s already influencing buyer behavior.

“Financing doesn’t dominate our market, but it’s becoming part of the conversation,” says Ernesto Kiang Chong, a Mexican realtor with eight years of experience at CDR Forbes Real Estate in San Miguel de Allende. “It’s helpful for buyers who want flexibility, but sellers and agents also need to understand how loans affect timing, paperwork and closing.”

When it’s time to sell: the challenge of removing a lien

While financing opens the market to new buyers, it can also create challenges when it comes time to sell. Homes purchased with a mortgage carry a lien held by the lender, and that lien must be fully released before ownership can be transferred to a new buyer.

This can become complicated if the seller intends to use the proceeds from the sale to pay off the loan. “If the funds from the buyer need to go directly to the lender, there can be hesitation,” explains Chong. “Buyers want assurance that the lien will be cleared before title transfers, but the payoff and release process can take time. That sometimes delays closings and causes frustration on both sides.”

In the United States, escrow agents routinely coordinate lien payoffs and releases as part of closing, often in a single day. In Mexico, however, the process can be more cumbersome, involving coordination among the lender, notary and local property registry. The lender must issue a carta de liberación (release letter), and that document must be officially recorded before the new deed can be executed.

If any of these steps are delayed — such as wire transfers, document verification or registry updates — the closing may be postponed by days or even weeks. For sellers depending on the proceeds to fund another purchase, those delays can be particularly stressful.

Managing expectations

To avoid problems, Chong recommends early planning. Sellers with financed properties should contact their lender well in advance to request a formal payoff statement and confirm how long it will take to obtain the lien release. Working with an escrow company experienced in cross-border transactions can also help ensure that payoff and closing funds are handled correctly.

Buyers, meanwhile, should be prepared for longer timelines when purchasing a property that still carries a loan. Coordination between the lender, notario and escrow service is essential for a smooth handover.

Because financing remains relatively new in Mexico’s property market, Chong emphasizes that it’s important for buyers and sellers to work with a real estate professional who understands cross-border lending and can guide them through the process. “A good agent can anticipate timing issues, explain lender requirements, and keep communication flowing between all the parties,” he says. “That can make the difference between a smooth closing and a very frustrating one.”

A knowledgeable realtor can also help buyers evaluate the pros and cons of different financing options, coordinate with escrow and the notario, and ensure the lien release and registration steps are completed properly at resale.

A market in transition

Financing in Mexico is still a relatively small segment of the overall market, but the presence of companies like MOXI, MEXLend, and HIR Casa represents a gradual shift toward greater accessibility and standardization. Cash transactions will continue to dominate for the foreseeable future, yet the ability to secure a long-term mortgage makes owning a home in Mexico more feasible for a broader range of buyers.

As lenders, agents and notarios gain more experience with these transactions, processes should become faster and more predictable. For now, each financed sale still involves a learning curve.

Even so, the impact is being felt. “It’s not a revolution,” Chong says, “but it’s definitely an evolution. Buyers have more choices, and that’s good for the market.”

The bottom line

The introduction of U.S.-style mortgage products in Mexico offers a promising new avenue for qualified buyers — especially Americans — to purchase property. It’s a welcome development in a market long dominated by cash deals, but one that also comes with added layers of complexity, from origination fees to lien management at resale.

As Mexico’s real estate sector continues to mature, working with an experienced agent who understands both the benefits and the challenges of financing will help buyers and sellers navigate this changing landscape with confidence.

Glenn Rotton is a real estate agent with eight years of experience in San Miguel de Allende. Originally from Seattle, he has lived in Mexico for twelve years with his husband, Kiang Chong Ovalle, and their dog, Angus. Read more about Glenn here.

The post The emergence of US-style financing in Mexico’s real estate market appeared first on Mexico News Daily