Obtainining a home loan in Mexico is a more complicated process than that of the United States.  This is largely due to the fact that in the event of a default, foreclosure on the property is a lengthy process; therefore, lenders take additional precautions.

1. Loans in Mexican Pesos
2. Loans in USD

There following are examples of programs and benefits currently available:

Residential purchase/Cash Out Refinance

• 30 year – 8.00%
• 25 year – 7.25%
• 20 year – 6.875%
• 15 year – 6.62%
• 10 year – 6.5%

LTVs of up to 80%

Raw Land – Available to US and Canadian citizens

• 30% down, 10 year note, rates from 7.5%

Turistica Advisors encourages our clients to protect their property investments through purchasing title insurance.

A title guaranty is purchased for a one-time fee and once acquired, protects the policy holder as long as there is an interest in the property.

Title insurance is a contract of indemnity that protects the property rights transmitted to a new property owner/lender and indemnifies the policy holder against damage or loss arising from a defect in the title to real property.

It is not a requirement for purchasing; however, it ensures that the ownership rights of our clients are protected.

Capital gains tax law in Mexico states that tax is owed on the profit the seller receives.

By law, you have two options when it comes to capital gains and you can use whichever is the better of the two options for you:

• You pay 28 percent* of the net profit. (There are a variety of deductions included in this option.)


• You pay 25 percent* of the gross sales amount with no deductions.

Although a 28 percent capital gains tax may seem high, Mexico does have several laws and procedures that will assist you in maximizing your cost basis, thereby reducing your net profit and lowering your capital gains.

The key is understanding these laws before you buy, not when you decide to sell.

The purchaser pays two percent acquisition tax to receive the trust, upon that time, the purchaser eligible to receive an inflationary credit from the Mexican government for each year of ownership.

This credit is added to your cost basis when you decide to sell your property. The credit is based on consumer index adjustments (inflation) and can be quite significant.

In the past when inflation was higher, we have seen credits in excess of 15 percent per year applied to a cost basis when you acquired your property some years ago.

On a million-dollar property, this can be as much as $150,000 USD per year added to your cost basis, significantly reducing your capital gains tax should you decide to sell in the coming years.

Closing costs vary based on ownership instruments.