Buying a home in Mexico means understanding a constellation of products: Infonavit, Fovissste, bank loans, co-financing, joint credit and direct developer plans. Each has different rules, rates and requirements. This section explains the variables that determine your monthly payment, the costs tied to closing, the documents you need to gather, and calculators to estimate scenarios. The information is educational and does not constitute a binding financing offer.
Mexican institutions offer products for very different profiles: from IMSS-affiliated workers to independent professionals with annual tax returns. Identify the product that matches your profile before searching for a property: the maximum amount and requirements change considerably between options.
Infonavit loan
For workers affiliated with the IMSS (private-sector social security). The amount depends on points, integrated daily wage, age and contribution periods. Repayment via payroll deduction, with payment deferral if you become unemployed.
Ideal for: Workers with a formal employment relationship and at least 1,080 available points.
Pros
Automatic payroll repayment
Payment deferral while unemployed (up to 12 months)
Use your Housing Sub-account toward the down payment
Products for improvement, expansion and self-build
To consider
• Subject to official pre-qualification in your Infonavit account
• Rate indexed to the UMA or wages depending on the product
• Restrictions on properties without residential zoning
• Frequent changes to operating rules
Fovissste loan
For government workers affiliated with the ISSSTE. Assigned by lottery or direct allocation depending on the product. Peso-denominated options with a fixed rate and co-financing with private banks.
Ideal for: Public servants with active contributions and sufficient seniority.
Pros
Fixed rate on many options
Applicable to new, used or construction housing
Co-financing option with a bank
Clear allocation rules
To consider
• Availability by lottery on certain products
• Requires minimum contribution seniority
• Agency-specific documentation
Bank mortgage
Granted by commercial banks and regulated SOFOMs. More flexibility in amount, term and property. Requires income verification through the credit bureau and repayment capacity based on the payment-to-income ratio.
Ideal for: Independent professionals, entrepreneurs or employees with high income but insufficient Infonavit contributions.
Pros
Flexible amount and term (up to 20 years)
Fixed, mixed or variable rate depending on the product
Applies to almost any regularized property
Combines spouse's income without needing IMSS
To consider
• Rate generally higher than Infonavit
• Requires a good credit bureau history
• Origination fee and mandatory insurance
• Stable payment but no deferral for unemployment
Co-financing Infonavit + bank
Combines an Infonavit loan with a bank loan to reach larger amounts. Two parallel contracts, two simultaneous repayments and two insurance policies. Recommended when a single source isn't enough.
Ideal for: Affiliated workers looking for housing above the individual Infonavit amount.
Pros
Raises the available amount
Uses your Sub-account as a down payment
Gives access to higher-value properties
To consider
• Involves two contracts and two monthly payments
• Higher total fees and insurance
• More complex coordination between institutions
Joint credit
Two people (spouses, partners or, in some products, direct relatives) combine income and sign a single loan. Raises capacity without doubling contracts.
• Separation rules in case of divorce defined by the contract
Pre-sale financing
Some developers offer a direct interest-free installment plan on the down payment plus a mortgage that starts at construction completion. It's mixed financing: developer + bank or Infonavit.
Ideal for: Buyers who want to enter at pre-sale price and can cover the down payment in installments.
Pros
Takes advantage of the pre-sale discount
Down payment in installments
Formal loan at construction completion
To consider
• Risk of developer default
• Delivery time can exceed 24 months
• Review the promise-to-sell contract carefully
Variables that move the loan
How your monthly payment is really built
The monthly payment you see advertised results from combining rate, term, amount, fees and insurance. Knowing each variable lets you negotiate with criteria and compare offers based on objective information, not just the monthly price.
Interest rate
Fixed, variable or mixed. A fixed rate gives payment certainty over the whole term. A variable rate usually starts lower but adjusts with the TIIE or a reference. A mixed rate is fixed the first years and variable after. Ask for the full amortization table to compare.
Total Annual Cost (CAT)
An indicator standardized by Banxico that includes the rate, fees, insurance and other loan costs in annualized terms. It's the real comparator between banks. Two loans with the same rate can have a different CAT due to fees.
Term
The loan's amortization period. Common terms: 5, 10, 15 and 20 years. A longer term means a lower monthly payment but more total interest. A shorter term means a higher payment but a lower total cost.
Down payment
The percentage of the price you pay with your own funds. Common minimum: 10%–20%. A larger down payment means a smaller amount to finance, a better loan-to-value (LTV) ratio and often a better rate.
Monthly payment
A typical payment shouldn't exceed 30%–35% of your net income. Keep in mind that utilities, maintenance and a reserve for the unexpected must fit within the remaining budget.
Mandatory insurance
Mortgages include life insurance (pays off the balance if the borrower dies) and property damage insurance (coverage for fire, flood, earthquake). Both are paid as part of the loan.
Closing costs
What isn't in the monthly payment but you still pay
Beyond the down payment and the monthly payment, closing involves significant costs. Good planning builds them into the budget from the start. As a rule, add 6% to 10% of the operation value to cover full closing. Some costs can be financed within the loan; others must be paid at signing.
Item
Approximate amount
Bank appraisal
One-time at the start
Origination fee
0.5%–2% of the loan
Property acquisition tax (ISAI)
2%–3% of the operation value
Registry fees
State tariff
Notary fees
1%–2% of the value
Certificates (lien-free, property tax, water)
Fixed cost per document
Life insurance
Prorated monthly
Property damage insurance
Prorated monthly
Documents
Typical file to apply for a loan
The exact file depends on the product and the institution, but the documentary core is the same. Gather these items in high-resolution digital format before applying. Having the full package ready speeds up the response significantly.
Valid official ID
Current proof of address (no older than 2 months)
CURP and RFC (tax IDs)
Birth certificate
Marriage certificate or document proving marital status
Proof of income: payroll or bank statements (3-6 months)
Annual tax returns if you're a self-employed individual
Statements for credit cards or current loans
A completed and signed loan application
Authorization to check your credit bureau record
Calculators
Run real numbers before deciding
Use editable scenarios for the mortgage payment, purchasing power, closing costs, the upfront rental cost and investment returns. The figures are educational references; your real offer may vary by institution, profile, appraisal, fees, insurance and city.
Online calculation
Mortgage payment
Calculate the monthly payment with standard amortization, down payment, closing costs and suggested income.
Financed amount
$2,000,000
Estimated payment
$19,968
Suggested income
$57,050
Upfront cash
$700,000
Interest over term
$2,792,223
Informational calculations. They don't include all taxes, insurance, fees, city-by-city variations or a binding offer from an institution.
Frequently asked questions
What most people ask before applying
How much do I need to earn to buy a house with a loan?
As a general rule, your net monthly income should be at least three times the expected monthly payment. For a 15,000-peso payment you need net income close to 45,000 pesos. This ratio keeps the payment from exceeding 35% of your available income and leaves room for housing-related expenses.
What happens if I lose my job during an Infonavit loan?
Infonavit offers a no-payment deferral for up to 12 months when you lose formal employment. Interest keeps accruing but you don't accumulate arrears. When you return to formal work, repayment resumes via payroll. This deferral is one of the big benefits over a bank loan, which doesn't have this protection.
Can I pay off my loan early without penalty?
Most mortgages allow early payments without penalty: any extra payment reduces principal and therefore your monthly payment or term, as you prefer. Confirm in the contract that there's no prepayment fee and how extra payments are applied.
Is the payment simulation a binding offer?
No. The calculator is an informational estimate based on general variables. The binding offer is provided by the bank or institute after reviewing your full file, credit history and property appraisal. The calculator's figures are for planning, not for closing.
What is the CAT and why does it matter more than the rate?
The CAT (Total Annual Cost) is the indicator Banxico standardizes to compare loans. It includes the rate, fees, insurance and other annualized costs. Two loans with the same rate can have a different CAT. To compare between banks, the CAT is the relevant figure.
Does Ubica Casa grant loans?
No. Ubica Casa is a search, content and connection platform. We are not a financial institution, bank, SOFOM or regulated intermediary. The loan options we describe are informational. A formal offer must be provided by an institution authorized by the National Banking and Securities Commission or a competent body.
Important notice
Ubica Casa is not a financial institution or a regulated credit intermediary. The information in this section is educational and does not constitute a binding offer, personalized financial advice or an investment recommendation. Rates, fees, terms, amounts and conditions are references and may vary. Before taking out a loan, go to an institution authorized by the National Banking and Securities Commission (CNBV) or the relevant public body, read the binding offer, compare the CAT, review the full contract and keep a signed copy. The decision and consequences of taking out a loan are the sole responsibility of the applicant.