Complete Mortgage Guide — Mexico

How Mortgages Work in Mexico

Banco de México (Banxico) sets the tasa de interés objetivo (target interest rate), which influences bank funding costs and mortgage rates. Mexican mortgage rates are typically higher than in developed markets, ranging from 8-13% for bank loans due to higher inflation expectations and funding costs. INFONAVIT and FOVISSSTE offer subsidised rates significantly below commercial bank rates for eligible workers

Use our mortgage calculator to see how different rates and terms affect your monthly repayments.

Types of Mortgages Available

The main types are crédito hipotecario bancario (bank mortgage — fixed rate for the full term is standard, variable rates rare), crédito INFONAVIT (loans from the workers’ housing fund based on employer contributions in VSM — Veces Salario Mínimo — units rather than pesos), and Cofinavit (a combination of INFONAVIT credit with a bank mortgage for higher-value properties). Fixed-rate products dominate the bank market, giving payment certainty despite higher headline rates

Read our mortgage types comparison for a detailed side-by-side analysis of each product.

How Much Can You Borrow?

Banks assess the capacidad de pago (payment capacity) — monthly payments including existing debts should not exceed 30-35% of net income. Bureau de crédito (credit bureau) reports from Buró de Crédito and Círculo de Crédito are checked. A clean credit history for at least 2-3 years is important. INFONAVIT has its own scoring system based on contribution history, age, and salary

The maximum loan-to-value in Mexico is Typically 70-80% through commercial banks, with some offering up to 90% for well-qualified borrowers. INFONAVIT credit amount depends on accumulated contributions and salary level. Cofinavit combines both to reach higher property values. The enganche (deposit) of 10-30% must come from own savings. Loan terms extend up to Up to 20-30 years for bank mortgages, with 15-20 years being most common. INFONAVIT loans have terms up to 30 years. Shorter terms are strongly recommended as the high interest rates mean total interest on a 20-year loan can exceed the original principal.

The Application Process

For bank loans: provide INE/IFE (voter ID), CURP, RFC (tax registration), comprobantes de ingresos (income proof — last 3 payslips, tax returns), states de cuenta bancarios (bank statements — last 3-6 months), and the avalúo (property appraisal). For INFONAVIT: check your points and subcuenta balance on the INFONAVIT portal, then apply when you meet the minimum 1,080 points. Bank approval takes 2-4 weeks. The notario público handles the escritura (deed) and mortgage registration

Costs and Fees

Comisión por apertura (origination fee) of 0-1.5% of the loan amount. Avalúo (appraisal) fee of $3,000-8,000 MXN. Gastos notariales (notary fees) of 4-7% of the property value are the largest single cost. Seguro de vida (life insurance) and seguro de daños (property damage insurance) are mandatory and added to monthly payments. Annual cost (CAT — Costo Anual Total) is the regulatory benchmark that includes all costs — always compare CAT, not just the interest rate

What Makes Mexico’s Mortgage Market Unique

Mexico’s INFONAVIT system is unique — all formal sector employers contribute 5% of each worker’s salary to a housing fund. Workers accumulate credits that can be used for a deposit or mortgage. The system has financed millions of homes and is the backbone of Mexican housing finance. Cofinavit cleverly combines INFONAVIT credits with bank loans, allowing workers to access higher-value properties than either source could finance alone

Refinancing Your Mortgage

Mejora de condiciones (improvement of conditions) with your existing lender or portabilidad (portability) to a new lender are both options. The 2014 Financial Reform made mortgage portability easier and cheaper. Compare the CAT (total annual cost) of your current loan against market offers. Given the high rates in Mexico, even a 1-2% rate reduction can save hundreds of thousands of pesos over the remaining term. CONDUSEF (financial consumer protection agency) provides comparison tools

Read our refinancing guide for a step-by-step walkthrough.

Government Schemes and Support

INFONAVIT provides housing credits to formal sector workers based on accumulated contributions. FOVISSSTE provides similar benefits for government employees. Subsidios federales (federal subsidies) are available for lower-income buyers purchasing affordable housing — these provide a direct grant reducing the purchase price. Cofinavit and Cofinavit Ingresos Adicionales combine INFONAVIT with bank financing for higher-value properties. The Programa de Vivienda Social targets the lowest-income segments

Check our government grants guide for the latest programmes and eligibility details.

Tips for Getting the Best Deal

Always check your INFONAVIT subcuenta balance and points before going to a bank — if you qualify for INFONAVIT credit, the subsidised rate will beat any bank offer. Compare using CAT (Costo Anual Total), not just the tasa de interés — CAT includes all costs including insurance and fees. Use the CONDUSEF mortgage comparison tool (simulador de crédito hipotecario). If buying through Cofinavit, coordinate timing carefully between the bank and INFONAVIT approvals. Pay extra whenever possible — at 10%+ rates, prepayments generate enormous savings

Next Steps

Use our mortgage calculator to model different scenarios, read our property buying guide for the full purchase process, or browse Mexico FAQs for quick answers.