In Mexico there are different types of credits that can be requested to buy a house. 

Contrary to mass thinking that in 2020 and 2021 it has become more difficult to apply for loans, in fact the bank mortgage portfolio grew almost 10 percent during the year of the COVID-19 pandemic.

In 2021, it follows an increasing trend.

This means that many people are still interested in investing in property and building their wealth.

There are four types of mortgage loans in Mexico that you can request.

Each one is different and all have their advantages and disadvantages. Here we explain them to you.

Bank credit

This is one of the best known credits, and it is through a financial institution. 

They have very complete loans and also offer additional services to financing for real estate.

We recommend that you shop around between banks, as they all offer different rates, benefits, and specifications.

On average, a bank’s interest rate is 9 to 10 percent, lower than other types of mortgage loans.

In addition, they offer a fixed or variable rate, both with their respective advantages.

To apply for a bank loan, generally you must present the following documentation: proof of seniority, credit history, official identification and insurance.

Infonavit Credit

The Institute of the National Housing Fund for Workers, or Infonavit, is a loan offered by the government to support Mexicans to buy a house.

However, the maximum amount of this credit is 1,700,000 pesos (subject to different factors such as age and salary), and maintains a fixed interest rate of 12 percent, higher than that of bank loans.

This credit is a good option if you do not have a good credit history, since no banking institution will grant you a mortgage without this requirement.

The advantages of the Infonavit credit is that it is applicable to the purchase of a new or used property, to build on your own land, remodel or improve your house, and even to pay a mortgage that you have in force with a banking institution.

Credit Fovissste

The Housing Fund of the Institute of Social Security and Services, commonly known as Fovissste, is a credit applicable to Mexican workers who work in public organizations and who contribute to the institution.

These credits can be taken out for up to 30 years, with a very low interest rate of 4 to 6 percent.

Like the Infonavit, this credit can be used for the purchase of new or used property, for home improvements or remodeling, construction on own land, or amplifications.

This credit is only granted to active State workers, who have been contributing at least 18 months.

Sofom credits

Multiple Purpose Financial Companies, known as SOFOM, are public limited companies that grant financial credits.

These entities must be registered with CONDUSEF, and that is why their rates are even higher than those of Infonavit, hovering between 13 and 15 percent.

The loans granted by SOFOM tend to grant longer payment terms and have a lot of flexibility, which makes them attractive to many.

A main advantage of this credit is that you can use it together with your Infonavit to increase the limit of the loan that the government institution gives you.

What Mortgage Credit Model is Right for You?

It is a question without a fixed answer; It depends on many personal factors such as financial situation, age, salary, type of property, among others.

When looking for financing for your home, you should consider factors such as:

• Interest rate
• Credit term
• Benefits and / or penalties
• Requirements to apply

You will have to define which one best suits your needs and possibilities, and on that you can choose the best option for you.