Complete Property Buying Guide — Mexico

Understanding the Mexico Property Market

The property market in Mexico offers diverse opportunities across its key markets. Mexico City, Guadalajara, Monterrey, Cancún, Mérida, and Puebla represent the main buying hotspots, with prices and demand varying significantly between regions.

The Bank of Mexico sets the benchmark interest rate, which influences mortgage pricing across all lenders. Use our mortgage calculator to estimate repayments based on current rates.

Property Prices and Key Markets

Typical prices in Mexico range from $1,500,000 MXN for apartments in mid-tier cities to $5,000,000+ MXN in premium Mexico City and resort areas.

Mexico’s Restricted Zone (zona restringida) covers all land within 50km of the coast and 100km of international borders. Foreigners cannot directly own property in this zone but can purchase through a fideicomiso (bank trust), where a Mexican bank holds the title on behalf of the foreign buyer while giving them full rights of use, enjoyment, and sale. The trust costs approximately $500 USD/year plus setup fees

Setting Your Budget

Beyond the purchase price, you need to budget for transaction costs that typically add 6-10% including ISAI, notary fees, registry fees, appraisal, and agent commission (typically 3-6% paid by seller) to the total. Your deposit requirement is 10-30%, though this varies by lender and your buyer profile.

ISAI (Impuesto Sobre Adquisición de Inmuebles) is the acquisition tax, typically 2-5% depending on the state and municipality. Mexico City charges approximately 5.5%

Read our buying costs guide for a detailed breakdown of all purchase-related expenses.

Getting Finance Approved

Mortgage terms in Mexico extend up to 20-30 years, with 15-20 year terms most common. Lenders typically offer up to Typically 70-80% through commercial banks, up to 90% through INFONAVIT for qualifying properties loan-to-value, meaning you need at least the remainder as a deposit.

Compare rates across major lenders including BBVA México (largest mortgage lender), Banorte, Santander México, HSBC México, Scotiabank México, INFONAVIT, and FOVISSSTE. Our mortgage types guide explains the differences between available loan products.

Finding and Securing Property

Working with a qualified real estate agent (agente inmobiliario) is the standard approach in Mexico. Research local areas thoroughly, attend viewings, and consider factors like transport links, amenities, and future development plans.

Legal Process and Due Diligence

Property transfers in Mexico require a qualified notary public (notario público) to handle the legal process. A notario público (a government-appointed legal professional, different from US notaries) handles all property transactions. The notary verifies the title, ensures tax compliance, registers the deed with the Public Registry of Property (Registro Público de la Propiedad), and collects all transfer taxes. The escritura pública (public deed) is the definitive proof of ownership.

Professional building inspections are not standard practice in Mexico. Buyers should independently verify construction quality, check for structural issues (especially seismic damage history in earthquake zones), and confirm all construction permits and municipal approvals are in order

See our property inspection checklist for what to check before committing.

Government Support for Buyers

INFONAVIT is Mexico’s largest housing finance institution, funded by mandatory employer contributions (5% of salary). Workers can use their INFONAVIT balance for a deposit or combine it with bank financing. FOVISSSTE provides similar benefits for government employees. Both offer below-market rates for qualifying buyers. The Cofinavit programme combines INFONAVIT credits with bank mortgages for higher-value properties

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

Next Steps

Use our mortgage calculator to model different scenarios, browse Mexico FAQs for quick answers, or read our complete mortgage guide for detailed information on rates and lenders.