FINANCING IN MEXICO IS NOW EASIER THAN YOU THINK
Our associates at Mortgages in Mexico share with us how and why.
Some people are thinking that prices in Mexico are currently very low, “but maybe they will go down a bit more.” We are seeing some good movement in the upper end of the market ($1M plus properties). Although no one has a crystal ball with a clear vision of the future, I consider people looking for high-end properties to be good money managers – what I call “smart money.” They want to be ahead of the curve and get in before prices again start their upward climb. The real estate market may or may not drop down a bit more, but if we’re not already at the bottom, we’re getting very close. The problem of waiting until the market bottoms out is that you don’t know when that is until it starts to go up again and you can look backwards and say with certainty when the bottom happened. This makes now an excellent time to purchase by being ahead of the coming market turnaround.
Do people want concrete information? Usually, yes. Here is an article showing the Canadian Dollar at its strongest point since 2008. Read Here
It is likely the Canadian Dollar will again weaken against the USDollar, and this can be a much bigger out-of-pocket expense for Canadians than paying a bit higher sales price. For a $300,000 property, at the current 98.5 Canadian rate, the home would actually cost $304,568 Canadian. If/when the Canadian Dollar were to drop to 95, the cost would be $315,789, or over $11,000 more in out-of-pocket Canadian Dollars to purchase at USD prices.
This article also alludes to the fact that as the economy of Canada (and the US) begin to strengthen, interest rates will go up – to slow down any expected inflation that is very likely to occur. As a reminder, interest rates for USDollar mortgage loans (available to both Canadians and US citizens) are at historic lows. We can go as low as 6% on interest rates, and typical rates for 30 year loans with 25% down are from 6.75 to 8.25%. Although many borrowers initially think they want a 30 year fixed rate, once I discuss their possible future considerations with them, often times they prefer an adjustable rate loan with a lower interest rate. Rather than you quoting specific rates, or even ranges or rates, put your clients on the phone with me, or have them correspond with me via email, and I can give them reasons and options for various different programs. I will then give them a side-by-side comparison so they can make an informed decision on the best way to purchase their home. Obviously NOW is a good time to buy before rates and prices start to head back up.
Some people prefer to pay cash for a property. Are you short of the total cash you will need to purchase the home/condo you REALLY want? Consider using financing to augment your purchase. If you have enough cash to buy a $300,000 property, but would rather purchase a property for $400,000, we can get a loan for $100,000 for $615/month. Now you can purchase the home you really want.
There are many reasons for buyers and agents to consider financing. More agents are writing contracts to include mortgage financing and they are finding the entire transaction to go surprisingly smoothly and quickly when they work with Mortgages In Mexico. I am an expert at helping put a transaction together and working with buyers who aren’t quite sure that now is the right time to buy. Buyers consider me an independent party to the transaction and appreciate the details I provide to decide that now IS the right time to buy. If you have any questions, or potential buyers you would like me to talk to, let me know.
There IS a difference in who you work with to get your transaction closed. We have an experienced team assembled throughout Mexico, and when you work with me, I stay VERY INVOLVED in all of my transactions – from putting the transaction together through closing. I look forward to hearing from you.
Doug Jones – Mortgages in Mexico
Get pre-approved here
For a list of Realty Executives Featured properties that could be financed through Mortgages in Mexico click here:
