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Refinance Your Mexico Property as a Canadian

Already own property in Mexico? Refinancing lets you lower your rate, access equity from appreciation, convert developer financing into a long-term mortgage, or switch from a peso-denominated loan to a stable USD mortgage. Cross-border refinancing works differently than refinancing in Canada — fideicomiso trust updates, Mexico-based appraisals, seasoning requirements, and notario-based closings all add layers that require specialized expertise. We guide you through every step, from comparing rates across our network of 12 cross-border lenders to coordinating the fideicomiso amendment and notario closing. Whether you want to reduce your monthly payment, pull cash out to fund your next acquisition, or pay off a short-term developer loan with a 30-year mortgage, we make refinancing your Mexico property straightforward.

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Refinancing

Unlock the Value in Your Mexico Property

Mexico's real estate markets have delivered strong appreciation for Canadian owners. Refinancing lets you capture that value — whether through lower payments, equity access, or restructuring into better loan terms.

70%
Max Cash-Out LTV
USD
Denominated Loans
30yr
Refinance Terms
6-12mo
Seasoning Required

Rate Reduction

If you financed your Mexico property when cross-border rates were higher or locked into a less competitive loan, refinancing lets you secure a lower rate and reduce your monthly payment. Even a 1-2% rate reduction on a $300,000 USD loan can save you $200-500 per month — savings that compound dramatically over the life of a 30-year term. We compare rates across our network of 12 cross-border lenders to find the most competitive option for your property and financial profile.

Cash-Out Equity Access

Mexico's top real estate markets have delivered strong appreciation over the past decade, and a cash-out refinance lets you access that equity without selling. Refinance at up to 70% of your property's current appraised value and use the funds for renovations, additional property acquisitions, or other investments. Many Canadian investors use cash-out refinancing as an equity recycling strategy — pulling equity from one appreciated property to fund the down payment on the next.

Developer Loan Conversion

Developer financing is convenient during construction but comes with short repayment windows and higher rates. Once your property is complete and delivered, converting to a traditional cross-border mortgage extends your term to up to 30 years and significantly lowers your monthly payment. This developer-to-permanent conversion is one of the most common refinance scenarios for Canadians who purchased pre-construction in markets like Riviera Maya, Cabo, and Puerto Vallarta.

Currency Conversion

If you hold a peso-denominated mortgage through a Mexican bank, refinancing into a USD-denominated loan eliminates your exposure to exchange rate volatility. The Mexican peso can fluctuate 10-20% against the Canadian dollar in a single year, making your effective monthly payment unpredictable. A USD-denominated refinance stabilizes your costs and aligns your debt with the currency most commonly used in Mexico's international real estate transactions.

Fideicomiso Coordination

Refinancing a property held in a fideicomiso (bank trust) requires updating the trust to reflect the new lender's security interest. We guide you through the fideicomiso amendment process, coordinating between the Mexican bank that administers your trust, the notario publico handling the closing, and your new lender. This ensures the refinance is properly documented and your ownership rights remain fully protected throughout the transition.

Cross-Border Expertise

Refinancing a foreign-held property is fundamentally different from refinancing in Canada. Mexican property law, fideicomiso requirements, notario-based closings, and cross-border lender qualification standards all create complexity that domestic refinancing does not have. We specialize in navigating these differences, ensuring your refinance proceeds smoothly across two legal systems, two currencies, and two countries.

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Eligibility

What You Need to Refinance Property in Mexico

Refinancing a Mexico property as a Canadian requires meeting cross-border lender standards and satisfying Mexican legal requirements around your existing fideicomiso and title. Here's what you need and how we simplify the process.

Requirements

  • Minimum 30% equity in the property based on a current appraisal — lenders typically offer up to 70% LTV for both rate-and-term and cash-out refinancing.
  • Ownership seasoning of 6-12 months from your original closing date, demonstrating established ownership history before the lender will approve a refinance.
  • Active fideicomiso (bank trust) in good standing for any property located in Mexico's restricted zone — within 50km of the coast or 100km of the border.
  • Current property appraisal conducted by a lender-approved appraiser in Mexico to establish the property's market value and determine your maximum loan amount.
  • Valid Canadian passport with at least 12 months remaining before expiry at the time of the refinance closing.
  • Proof of stable income — employment letters, T4s, Notice of Assessment, or business financial statements — to meet cross-border lender qualification thresholds.
  • Canadian credit score of 680 or higher, with a clean credit history showing responsible debt management and on-time payments.
  • Clear title with no outstanding liens, judgments, or disputes on the property — verified through the notario publico's title search during the refinance process.

How We Help

  • We compare refinance rates and terms across our network of 12 cross-border lenders to find the most competitive USD-denominated option for your property and financial profile.
  • We guide you through the fideicomiso trust amendment process, coordinating between the Mexican bank, notario publico, and your new lender to ensure proper documentation.
  • We arrange the property appraisal through lender-approved appraisers in your market and review the valuation to ensure it accurately reflects your property's current worth.
  • We calculate break-even timelines for rate reduction refinancing, so you know exactly when your closing costs are recovered through monthly payment savings.
  • For developer loan payoffs, we structure the refinance to pay off your existing developer balance and convert to a 30-year term with significantly lower monthly payments.
  • We coordinate currency conversion refinancing for owners switching from peso-denominated to USD-denominated loans, managing the payoff of the existing Mexican bank mortgage.
  • We provide a detailed closing cost estimate before you commit, including lender fees, notario charges, appraisal costs, and fideicomiso amendment fees — so there are no surprises.
  • Post-refinance, we connect you with cross-border tax advisors to ensure your new loan structure is optimized for tax efficiency in both Canada and Mexico.
FAQ

Questions About Refinancing in Mexico

Everything Canadians need to know about refinancing property they already own in Mexico.

Eligibility & Process

Yes. Cross-border lenders who specialize in foreign-held Mexico property offer refinancing for Canadian owners. Whether you purchased with cash, developer financing, or an existing mortgage, refinancing allows you to access better rates, pull out equity, or restructure your loan. The process requires a current property appraisal, proof that your fideicomiso is active and in good standing, and standard Canadian income and credit documentation. Most lenders require 6-12 months of ownership (seasoning) before they will approve a refinance.
For rate-and-term refinancing, most cross-border lenders offer up to 70% LTV, meaning you need at least 30% equity in the property. For cash-out refinancing, LTV limits are also typically up to 70%, though some lenders cap cash-out at 60-65% LTV depending on the property type and location. The LTV is calculated based on a new appraisal conducted by a lender-approved appraiser in Mexico, not your original purchase price — so if your property has appreciated, you may qualify for a larger loan than you expect.
Seasoning refers to the minimum amount of time you must own the property before a lender will approve a refinance. For most cross-border Mexico lenders, the seasoning requirement is 6-12 months from the date of closing or the date you took possession. This protects the lender against inflated purchase prices and gives the property time to establish a genuine market value. If you purchased with developer financing and recently took delivery, the seasoning period typically starts from your closing date, not from when you signed the original purchase agreement.

Loan Types & Options

Yes, and this is one of the most common reasons Canadians refinance in Mexico. Developer financing is typically short-term — often balloon payments due within 3-5 years at higher interest rates. Once your property is complete and you have taken delivery, you can refinance the developer loan into a traditional cross-border mortgage with up to 30-year terms and a lower interest rate. This conversion from developer financing to permanent mortgage is similar to a construction-to-permanent loan and dramatically reduces your monthly payment while extending your repayment timeline.
Your lender will order an appraisal from an approved appraiser in Mexico who evaluates the property's current market value. The appraiser conducts an on-site inspection, reviews comparable sales in the area, and assesses the condition, location, and amenities of your property. Mexico appraisals typically cost $500-1,500 USD depending on the property type and location. The appraisal must be completed before the lender will finalize your refinance terms, as the appraised value determines your maximum LTV and loan amount. If your property has appreciated since purchase, the appraisal can unlock significantly more equity than your original loan balance.
Yes. If you currently hold a peso-denominated mortgage through a Mexican bank, refinancing into a USD-denominated loan through a cross-border lender eliminates your exposure to Mexican peso volatility. Since 2020, the peso has fluctuated significantly against both the Canadian and US dollar, meaning your effective monthly payment in Canadian dollars has been unpredictable. A USD-denominated refinance locks your loan into a stable, internationally traded currency and aligns your debt with the currency most commonly used in Mexico's foreign real estate market.

Costs, Equity & Legal

Refinancing costs in Mexico are comparable to a new purchase closing. Expect to pay: appraisal fees ($500-1,500 USD), lender origination or processing fees (1-2% of loan amount), notario publico fees for recording the new mortgage on the property's deed, fideicomiso transfer or amendment fees if the trust requires updating, title insurance if required by the lender, and any applicable Mexican taxes on the mortgage registration. Total closing costs typically range from 2-4% of the new loan amount. We provide a detailed cost breakdown before you commit so there are no surprises.
Absolutely. Cash-out refinancing is one of the most effective strategies for growing a Mexico property portfolio. If your existing property has appreciated — which is common in markets like Cabo, Cancun, and Tulum — you can refinance at up to 70% LTV and use the equity to fund a down payment on a second property. This is the same equity recycling strategy many Canadian investors use domestically, applied to cross-border real estate. We help you structure the cash-out to align with the down payment requirements of your next purchase, creating a self-funding acquisition strategy.
In most cases, yes. When you refinance, the new lender will require their lien to be registered on the fideicomiso trust that holds your property title. This may involve amending the existing fideicomiso to reflect the new mortgage or, in some cases, establishing a new trust. The notario publico handling your refinance closing coordinates this with the Mexican bank that administers your fideicomiso. The process adds 2-4 weeks to the refinance timeline and costs approximately $500-1,000 USD in trust amendment fees. We guide you through the fideicomiso update process to ensure everything is properly documented and the new lender's security interest is registered.

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