The Mexican mortgage industry is relatively new. Until recently, most residential property was sold in cash transactions. In the absence of mortgage products, not only were potential buyers closed out of the market, but owners of real estate in Mexico had no opportunity to put their equity to work.

Today, mortgages are available for structures, construction and land purchases. In addition, owners of real estate in Mexico can obtain refinancing loans, enabling them to take advantage of the appreciation in their property values. Unlike mortgage products in the US, most mortgages here are conventional, 30-year mortgages. The interest rates are fixed and depending upon whether the mortgages are denominated in dollars or pesos, the interest rates are very competitive, and comparable to rates currently available in the US.

The fact that owners of Mexico real estate can use the equity in their properties gives them a major advantage when it comes to making improvements in the property or simply taking the extra cash and devoting it to other interests. The rate at which property values are appreciating here in Puerto Vallarta has been measured in double digits for the last several years. The availability of refinancing loans for owners of properties here makes ownership of real estate in Mexico a far more attractive proposition.

If you’re not currently considering the purchase of real estate in Mexico, you should be, if only because the return potential here is so great.