Some Benefits of Financing the Purchase of a Mexican Property

By obtaining a mortgage, the borrower employs one of the most basic principles of real estate purchasing investment; Leverage: Buying a property with Other People's Money (OPM).  This eliminates the need to use precious cash to buy a home, potentially depleting reserves which could be used for other purchases, emergencies, or lucrative investment opportunities.

Interest rates paid on the mortgage are tax deductible for Americans; Canadians must check with their accountants.    Furthermore, if consumer loans are needed later to finance other purchases (due to cash shortages by the client), that interest is not tax deductible (Interest paid on Consumer loans is not tax deductible).

Some of the closing costs MAY also be tax-deductible.  For example, discount points , government fees, and others, are tax-deductible for the homebuyer.

Ensuring a Fee Simple Title:  One of the biggest concerns foreign nationals have purchasing a property in Mexico is the lack of certainty of a Clear Title to the property.  By purchasing with a mortgage, they can rest assure the bank will make sure title is clear prior to closing.