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Mexico Pre-Construction Financing for Canadians

Buy pre-construction in Mexico's best markets at 15-30% below resale prices. Developer financing during construction, completion mortgages at delivery. Most projects require just 10-30% down at signing, with progress payments spread over the 18-36 month build period — making it one of the most capital-efficient ways to own property in Mexico. We perform thorough due diligence on the developer's track record, verify all permits and land titles, review your purchase agreement with a Mexican real estate lawyer, and arrange completion mortgage financing so you don't need 100% cash at closing. From Riviera Maya resort developments to Cabo luxury condos, we help you identify reputable projects and structure your payments for maximum value.

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Pre-Construction

Buy at Pre-Sale Prices, Build Equity Before Delivery

Pre-construction in Mexico offers significant savings over buying resale. Combined with developer financing during the build phase and completion mortgages at delivery, it's one of the most accessible ways to own property in Mexico.

15-30%
Pre-Sale Discount
10-30%
Initial Deposit
USD
Denominated Loans
18-36mo
Typical Timeline

Pre-Sale Pricing

Buy 15-30% below the eventual resale price by purchasing during the project launch phase when developers offer their deepest discounts. As the project progresses through construction milestones and available units sell out, prices increase at each phase. This means your equity builds before you even receive the property — many buyers see paper gains of 20-40% by the time their unit is delivered.

Developer Financing

Most Mexican developers offer flexible financing during the construction period, making pre-construction one of the most affordable entry points into the market. Typical payment structures start with 10-30% at signing, followed by monthly or milestone-based progress payments over 12-24 months. This means you can spread $50,000-150,000 USD in payments over the build period instead of needing the full amount upfront.

New Construction Quality

Modern amenities, energy-efficient design, hurricane-rated construction, and builder warranties are standard in Mexico's newer developments. Many projects feature resort-style pools, fitness centers, rooftop terraces, concierge services, and smart home technology. Pre-construction also gives you the opportunity to select premium units — corner positions, higher floors, or ocean-facing orientations — before they sell out at higher prices.

Developer Due Diligence

We help you evaluate the developer by reviewing their track record of completed projects, financial stability, construction timelines, and customer satisfaction. We verify that the project has all necessary permits including environmental clearances, construction licenses, and confirmed land titles. We also check whether the developer offers a completion guarantee, escrow protection, or insurance that safeguards your deposits during construction.

Completion Mortgage

When your unit is delivered and the final payment of 30-50% is due, we arrange USD-denominated mortgage financing through cross-border lenders for the remaining balance. This converts your pre-construction purchase into a traditional mortgage — similar to a construction-to-permanent loan in Canada. Typical completion mortgage terms include up to 30-year amortization and rates competitive with the broader USD lending market.

Appreciation During Construction

Properties in Mexico's top markets typically appreciate 15-30% during the 18-36 month construction period as the project progresses from foundation to completion. By the time you receive your unit, it's often worth significantly more than your total purchase price — creating instant equity. This built-in appreciation is one of the primary reasons experienced investors specifically target pre-construction opportunities over resale properties.

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Due Diligence

What You Need for Pre-Construction in Mexico

Pre-construction purchases in Mexico require careful evaluation of both the developer and the financing structure. Here's what you need to move forward confidently, and how we protect your investment at every stage.

Requirements

  • Initial deposit of 10-30% of the purchase price at contract signing, with the exact amount depending on the developer and project phase.
  • Sufficient cash flow or savings to cover progress payments during the 18-36 month construction period, typically structured as monthly or milestone-based installments.
  • Valid Canadian passport with at least 12 months remaining before expiry to execute the purchase agreement and any related legal documents.
  • Purchase agreement reviewed and approved by an independent Mexican real estate lawyer before you sign — not the developer's lawyer.
  • Verification that the developer holds all required permits including construction licenses, environmental clearances, and clean land titles.
  • Pre-approval for a completion mortgage through a cross-border lender so financing is confirmed before the final payment of 30-50% comes due at delivery.
  • Fideicomiso (bank trust) arrangement initiated before the property delivery date for any unit located within Mexico's restricted zone — 50km from coast or 100km from border.

How We Help

  • We perform comprehensive developer due diligence — reviewing their completed projects, financial health, construction timelines, customer reviews, and legal standing before you commit.
  • We have your purchase agreement reviewed by an independent Mexican real estate lawyer who ensures penalty clauses, escrow protections, and assignment rights are included.
  • We structure your progress payment schedule to align with construction milestones and your personal cash flow, ensuring you never face unexpected lump-sum demands.
  • We pre-arrange completion mortgage financing with cross-border lenders well before delivery, so you have guaranteed funding when the final payment is due.
  • We coordinate the fideicomiso trust setup to be ready at closing, preventing any delays when the developer hands over the completed unit.
  • We verify that the project has escrow arrangements or completion insurance to protect your deposits if construction encounters problems.
  • We connect you with local real estate agents who attend construction site visits on your behalf and provide regular progress updates with photos and video.
  • Post-delivery, we help you transition into property management, rental setup, and ongoing tax compliance so your new asset starts generating income immediately.
FAQ

Questions About Pre-Construction in Mexico

Everything Canadians need to know about buying pre-construction property in Mexico.

How It Works

Buying pre-construction in Mexico typically involves: signing a purchase agreement, making a deposit (10-30%), progress payments during construction (spread over 12-24 months), and a final payment at delivery (30-50% of purchase price). Many developers offer their own financing during construction with flexible payment structures. The savings over resale prices can be 15-30%.
Risk exists but can be managed. Key protections: buy from established developers with completed projects you can visit, ensure your purchase agreement is reviewed by a Mexican real estate lawyer, verify the developer has all permits and land titles, use escrow where available, and check if the developer has a completion guarantee or insurance. We help you perform this due diligence.
Developer delays are the primary risk in pre-construction. To protect yourself, ensure your purchase agreement includes penalty clauses for delays beyond the contracted delivery date, and verify whether the developer has a completion bond or insurance policy. If a developer fails entirely, your recourse depends on your contract terms and whether funds were held in escrow. We only work with developers who have a proven track record of on-time deliveries and verifiable completed projects. Before you sign anything, we have your agreement reviewed by a Mexican real estate lawyer who ensures adequate protections are in place.

Financing & Timeline

Yes. Once the property is completed and ready for delivery, we arrange mortgage financing for the remaining balance through cross-border lenders. This means you can spread payments during construction (out of pocket or savings) and then mortgage the balance when you receive the property — similar to a construction-to-permanent conversion.
Most pre-construction projects in Mexico take 18-36 months from launch to delivery. Larger resort developments may take longer. During this time, you make progress payments per your contract. The property typically appreciates during construction, meaning your unit may be worth significantly more at delivery than what you paid.

Legal, Assignments & Markets

If the property is located within Mexico's restricted zone — within 50km of the coast or 100km of the border, which includes the vast majority of resort and vacation markets — yes, you will need a fideicomiso (bank trust) to hold the title. However, the fideicomiso is typically established at closing when the property is delivered, not during the construction phase. During construction, your purchase agreement with the developer secures your rights to the unit. We coordinate the fideicomiso setup to be ready when your unit is delivered so there are no delays at closing.
In many cases, yes. Assignment of pre-construction contracts (also called cession of rights) is common in Mexico and can be a profitable strategy if the property has appreciated during the build phase. The developer must typically approve the assignment, and there may be a transfer fee of 2-5% of the contract value. This allows you to lock in gains without ever taking delivery of the property. However, not all developers permit assignments, so we verify this right is included in your purchase agreement before you sign.
The Riviera Maya corridor — including Playa del Carmen, Tulum, and the coast between them — is currently one of the most active pre-construction markets in Mexico with hundreds of new developments catering to international buyers. Cabo San Lucas and San Jose del Cabo have strong demand for luxury pre-construction condos and villas. Puerto Vallarta and the Riviera Nayarit offer a mix of mid-range and premium developments. Merida, while inland, is emerging as a popular pre-construction market due to its lower price points and growing expat community.

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