Playa Del Carmen, Mexico (PressExposure) December 31, 2009 -- This December a TOPMexicoRealEstate helped a Canadian client successfully receive a Mexico Mortgage for his Playa del Carmen Real Estate purchase. While in Canada and the U.S acquiring property by means of a mortgage is fairly common, in Mexico the option is relatively new, and is not common yet. While the process is more complicated than in other countries, the client's Mexico Agent guided him through the process, greatly reducing the time commitment required on the part of the client. This successfully completed process, along with other similar recent cases, represents a real, feasible financing option for buying Mexico real estate.
The Canadian client in question bought a beachfront condo in Playa del Carmen, which his TOPMexicoRealEstate agent managed to find at more than 30% below market value. After the bank gave approval for the property and the borrower, the client was signing the final documents within 10 days, and the deal was closed in the first week of December.
Financing for real estate investments and purchases was basically non-existent for many years in Mexico, and interest rates were historically above 15 points. Almost all real estate transactions were cash deals. Many Americans and Canadians would leverage their Mexico investment using properties from their home countries.
The benefits of receiving a mortgage from a bank in Mexico include:
â¢ using the same Mexican property as collateral; this frees up assets in a buyer's countries â¢ interest rates which have dropped by more than 50% from 3 years ago; in October / November of this year, rates dropped 1% â¢ automatic payments can be arranged with the lender, which are convenient for Mexico property owners
There are some potential difficulties of which buyers seeking a Mexico Mortgage should be aware. One of these is the process time.
"Non-Mexicans should prepare for a longer process to obtain approval for financing than in their home countries," points out Thomas Lloyd, founder of TOPMexicoRealEstate. "The process might take nearly 6 - 8 weeks."
There are also strict requirements regarding the property itself, and many properties or sellers might not qualify. In the operation with the Canadian client, the property did not have insurance coverage which is one of the requirements. His agent set up discounted insurance coverage that not only fulfilled the requirements of the bank but also protected the property from unexpected damaging occurrences.
Ensuring that the property qualifies and has all the documents necessary to fulfill the requirements of the lender is one of the main processes that needs to be administered. A qualified, experienced broker can save a client time and frustrations; clients should find a broker who will know how to identify properties that have a better probability of qualification.
"The key to successful Mexico real estate acquisitions and investments is putting working with EXPERIENCED brokers and an experienced team," advises Lloyd.