When looking for a mortgage in Mexico, one of the first concepts you will encounter is the interest rate type. The choice between fixed, variable, or mixed rate directly impacts your monthly payment and your long-term financial stability.
With a fixed rate mortgage, you pay the same interest throughout the entire life of the loan, regardless of market movements. This lets you plan with complete certainty from day one.
Main advantage. Total stability: you know exactly how much you will pay each month for every year of the loan.
Consideration. The initial rate is typically higher than variable options, but it protects you from any future rate increases.
Variable mortgages adjust their rates periodically based on market conditions (typically tied to the TIIE benchmark rate published by Banco de Mexico). They start with lower rates but can increase over time.
Advantage. Lower initial payments and the possibility of benefiting if rates fall.
Risk. If rates rise, your monthly payments increase too, which can complicate your financial planning.
Combines an initial fixed-rate period (typically 3 to 10 years) followed by a variable rate. It offers stability at the start with the possibility of lower rates later, but also exposes you to rate increases once the fixed period ends.
For buyers purchasing property in Mexico from abroad, the fixed rate is the most recommended option. It eliminates currency and financial uncertainty: you know exactly how much to transfer each month in Mexican pesos, without depending on market fluctuations. At Flat.mx, all loans carry a fixed annual rate of 17.99%.
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The interest rate determines the real cost of your mortgage. Learn the types of rates available in Mexico, how they are calculated, and which is best for you.