When you turn on the news or pick up a newspaper these days, it is common to see headlines like "Mortgage Meltdown" or "Subprime Crisis". Foreclosures are at record highs and many people are close to losing their homes. In this post, I will explain what this means to Mexico.
Loans for Mexican properties are not "subprime loans"
Up until a few months ago, consumers were able to buy property in the US with no money down (100% financing) and no documentation of assets/employment verification. This meant that people were getting in way over their heads because they were getting approved for large amounts of money that they did not have the ability to pay back. Loans in Mexico do not fall into the subprime category. Documentation is required as well as a good to excellent credit score.
Property values in most areas of Mexico are appreciating
Mexico has been experiencing a boom for the past few years, and continues to see appreciation in resort areas. Unlike the US, prices are not dropping by 20% or 30%. Resort areas are seeing an increased number of baby boomers buying 2nd homes or primary residences.
Strong Canadian currency
The Canadian economy is stronger than ever. It reached parity with the US Dollar last month and today it has surpassed the US Dollar. Canadians have more purchasing power and many are choosing to buy in Mexico.
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