Financing a Property in Mexico: Options for Foreign Buyers Beyond the Cash Market Myth

Contrary to popular belief, the Mexican property market is not just for cash buyers. Foreign investors now have access to traditional mortgages, crypto-backed loans, and alternative financing options for purchasing property in Mexico. Here’s a comprehensive look at financing choices available to international buyers and how they can navigate this market.

Traditional Mortgages for Foreign Buyers

Foreign buyers can secure traditional mortgages in Mexico, with some lenders offering up to 20-year terms and loan-to-value (LTV) ratios as high as 85%. Both private lenders and major Mexican banks provide competitive options. Canadian buyers, in particular, benefit from specialized loan programs, while other international buyers can still access flexible terms. The average interest rate is currently around 10%, though borrowers with strong financial profiles may qualify for rates as low as 6.9%. Qualification criteria, including age, income, and credit score, influence rates and loan terms, and additional fees may include setup and appraisal costs.

Alternative Financing Options

For buyers seeking non-traditional avenues, several financing structures cater to varying needs:

1. Presales: Presale projects offer flexibility with payment plans, though full payment is often required by delivery. Payment periods can extend 12-24 months, and early investors can leverage larger down payments (typically over 30%) to negotiate discounts. Buying in at early commercialization stages can secure favorable pricing and maximize appreciation potential.

2. Developer Financing: This financing, offered by some well-established developers, extends payment terms post-delivery. Though convenient for stretching payments over time, developer financing is limited to larger, established projects and often has stricter price controls.

3. Owner Financing for Resales: In select cases, property owners offer short-term financing options on resale properties. Typically, these arrangements span 2-5 years and are contingent on the seller’s willingness to provide financing.

Crypto-Backed Loans and Bitcoin Purchases

Crypto-backed loans offer an innovative financing option for buyers who prefer not to sell their digital assets. Although Celsius Network is no longer operational, several other platforms facilitate crypto-backed loans:

SALT Lending

• Loan-to-Value (LTV): 30%–70%

• Interest Rates: 8.95%–14.45% APR (inclusive of a 1% origination fee)

• Loan Terms: 12 months

• Minimum Loan: $5,000

• Collateral Options: BTC, ETH, USDC, USDT, SALT

• Repayment Flexibility: No prepayment penalties; options to pay interest monthly or at maturity

• Additional Features: "Stabilization" tool to protect collateral during market volatility

Ledn

• LTV: Up to 50%

• Interest Rates: Starting at 12.4% annual interest rate (14.4% APR)

• Loan Terms: Typically 12 months

• Unique Offering: B2X product allows clients to double their Bitcoin exposure by using loan proceeds to purchase additional BTC

• Approval & Funding: Approvals within 24 hours; funding within 24–48 hours

• Custody: Collateral held securely with reputable institutions

Strike

• LTV: Up to 50%

• Interest Rates: Starting at 12% APR; effective 13% APR for "Payment at Maturity" loans due to compounding

• Loan Terms: 12 months

• Loan Amounts: $100,000–$2,000,000

• Repayment Options: Monthly interest payments with principal at maturity or lump-sum payment at maturity

• Fees: No origination, early repayment, or late payment fees; 0.99% liquidation fee if applicable

• Application: Loans managed directly through the Strike app

Onramp (in partnership with Arch)

• LTV: Up to 50%; margin calls at 70% LTV, partial liquidation at 80%

• Loan Terms: Fixed terms up to 2 years with rollover options

• Repayment Flexibility: No early repayment penalties; line of credit approach allows for upsizing or partial collateral release

• Custody: Collateral stored with Anchorage, a qualified custodian; assets held in segregated, non-rehypothecated addresses

• Target Audience: Long-term Bitcoin holders seeking liquidity without triggering taxable events

Xapo Bank

• Loan Amounts: $1,000–$5,000,000

• Loan Terms: 30, 90, 180, or 365 days

• Interest Rates: Low-interest APR; specific rates not publicly disclosed

• Eligibility: Invite-only basis; members can have one active loan at a time

• Repayment Flexibility: No minimum installments; repay anytime in USD or BTC

• Additional Features: Option to extend or upsize loans under certain conditions

For buyers interested in direct crypto transactions, some developers in Mexico accept Bitcoin, and we have a trusted facilitator who can ensure secure BTC property purchases. This pathway enables crypto holders to directly leverage their assets for real estate without conversion.

Whether opting for a traditional mortgage, alternative financing, or a crypto-backed route, Mexico offers a variety of pathways for foreign buyers to fund their property purchases. With the right financing strategy, international buyers can capitalize on Mexico’s real estate market without the constraints of an all-cash approach.