Imagine visiting Cabo so often that it starts to feel like home. You find yourself daydreaming of ocean views and morning coffee on your patio. Buying Cabo real estate sounds perfect—but you’re not sure how to finance a home in Mexico. If this feels familiar, you’re not alone.
Knowing the financing options is very critical to making an informed decision that best fits your financial situation and goals. So, if you are one of the many foreigners who want to own a home in Cabo, this article is your guide to real estate financing in Cabo, Mexico. If you’re looking to preserve liquidity and maintain cash flow as an investor, several financing solutions are available, including private lenders, seller financing, and developer financing.
1. Seller Financing Options
One very popular way that people buy into Los Cabos when they are coming from abroad is through seller financing. You go directly to the seller, you negotiate directly with the seller to be your lender. You make a down payment, typically 50%, and pay off the remainder over a given number of years, typically short-term 2 to 5 years with a balloon payment at the end.
This is good if you do not want to deal with the banks. It also accelerates the process, meaning you can get your new property sooner. A legal contract is written up to protect both the buyer and seller.
2. Developer Financing Options
Want a new condominium or villa? Many developers of Cabo will finance new constructions. The conditions vary from the developer, but the down payment would be between 20 and 30%, in addition to milestone payments during construction, while the balance may be paid for over a number of years.
Sometimes, developers will even offer incentives such as zero-interest periods or customized repayment plans. That’s a pretty good deal if you’re buying directly from the developer and do not want to have to hassle with conventional lenders.
3. Mexican Bank Mortgages
It’s pretty much a very straightforward process, like you would expect in Canada or the United States. Generally, you have to put down 50% of the purchase price and the terms and interest rates will vary.
Usually, a pre-qualification process will take place and you will be asked to provide proof of income, credit history, and assets. People normally open a bank account in Mexico to make payments.
4. Third-Party Lenders Financing Options
Third-party lenders could be just the answer. Companies offer loans to foreigners purchasing in Mexico. Their approval process can be quicker and the terms of the loan often more flexible.
However, the interest rates can be a tad higher than those of Mexican banks, and also there could be additional fees levied. It is ideal for buyers who are looking for an easy, hassle-free, fast finance solution.
5. Home Equity Line of Credit (HELOC)
If you have an existing property in Canada or the U.S., then a HELOC might work. Utilizing existing equity in an existing home saves having to interact directly with Mexican lenders and can result in faster and less complicated funding.
HELOCs tend to have much lower interest rates than loans in Mexico, but you can often qualify easily if you have sufficient equity.
Want to Check Out Properties in Cabo and Surrounding Areas?
Ready to begin? From ocean view condos in Cabo San Lucas to secluded retreats in Todos Santos, there is something in Los Cabos for everyone. Take a look at some of the most popular destinations listed below.
Choosing the Right Financing Option
Financing a property in Cabo is entirely possible. So, whether you wish to look into seller or developer financing, or getting financing through a Mexican bank, there is a solution to fit your goal.
I specialize in working with international buyers to navigate the Los Cabos real estate landscape. Contact me today!