Choosing the right mortgage can save you hundreds of thousands of pesos
The difference between a good and bad mortgage can represent over $500,000 pesos over the life of the loan. In this updated comparison we analyze the main options available in Mexico so you can make the best financial decision of your life.
Traditional bank mortgage
Commercial banks like BBVA, Banorte, Scotiabank, HSBC and Santander offer mortgages with fixed rates currently ranging from 9.5% to 12.5% annually. Terms range from 5 to 20 years. Advantages: relatively fast process (4-6 weeks), high amounts available and property type flexibility.
Infonavit: Mexico most popular option
With over 20 million eligible workers, Infonavit is the most accessible option. Credits are granted in pesos with rates from 2% to 12% based on your income. Advantages: some schemes require no down payment, direct payroll deduction and subsidies for low salaries.
Fovissste: for government employees
If you are a federal or state government worker, Fovissste offers competitive conditions. The current rate is around 6% fixed annually. Advantages: very competitive rates, payroll deduction, can be combined with bank credit.
Cofinavit: best of both worlds
Cofinavit combines your Infonavit credit with a bank mortgage, allowing you to access higher-value properties. Your housing sub-account serves as a down payment. Ideal when Infonavit alone does not cover the property you want.
What is CAT and why is it more important than the rate?
The Total Annual Cost (CAT) includes interest rate, commissions, insurance and all costs associated with the credit. Always compare CAT, not just the rate. A 12% vs 14% CAT on a $2,000,000 credit over 20 years represents a difference of over $400,000 pesos.
Conclusion
There is no universally best mortgage; the best one is the one that fits your financial profile, income and goals. Use online simulators, compare CAT and seek independent advice. At casasenoferta.com you will find properties that fit any budget and credit type.
