Mortgage Financing for Canadians, Eh?
Thinking about buying your dream home in Mexico? Trying to figure out the mortgage maze? Canadians (or Americans owning properties in Canada), listen up: Mortgages can now be arranged with interest as low as 1.9% and no fees through most major Canadian banks.
With interest rates at historical lows in Canada, and the canadian dollar close to parity, it’s an attractive alternative to financing in Mexico or cashing out investments which may not have fully recovered after the stock market decrease last year. For example, a $200,000 mortgage in Canada could have monthly payments as low as $400 per month, depending on the term selected.
For Canadian citizens looking to buy a pre-construction home in Mexico, using a Line of Credit can be the most cost-effective way to make the purchase. The Line of Credit allows you to make payments throughout the construction period and pay only for what you use; at the same time, your peace of mind is assured because approval is in place for the entire purchase price.
This is a particularly attractive alternative for new construction purchases that have scheduled payments until the project is completed. Should the Canadian prime rate (currently 2.50%) begin to increase, you also have the option of converting the Line of Credit to a fixed rate mortgage at any time, therefore fixing your monthly payments as you go forward. Current five-year mortgage rates in Canada are in the 4% range.
If you have equity in your Canadian property, you can take advantage of low rates to finance your purchase in Mexico. Mortgages are also available in Mexico, and it’s advisable to have an experienced professional assist you with the many variables that come into play with bi-national mortgages: interest rates, exchange rates, market conditions, etc.
Elaine Duke is a Mazatlán homeowner and owner of Your Mexican Mortgage, an independent mortgage brokerage firm shopping all Canadian banks for the best rates and terms. She works between Vancouver Island, BC and Mexico, Info: 001-250-619-6787 (Canada) or www.yourmexicanmortgage.com.
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