Mexico Mortgage Rates 2026: How They Compare With US Rates

Mexico mortgage rates in October 2026 run 9.15% to 13.25% fixed for a peso loan from a Mexican bank, based on the banks' own simulators with 10% down over 20 years. A US-dollar loan on Mexican property runs 10.0% to 12.4% fixed. In the US, the 30-year fixed averaged 7.40% (Freddie Mac, October 15) and HELOCs averaged 7.34%.

So borrowing in Mexico costs roughly 2 to 6 points more than borrowing in the US. The gap starts with central bank rates, widens once you compare the "from" rates banks advertise with what they actually quote, and, for anyone earning dollars, adds currency risk. Below are the rates, the reasons, and a worked example on a $500,000 home.

Mexico mortgage rates 2026 vs US rates, by option

Who qualifies matters as much as the rate. Mexican banks lend only to residents of Mexico with Mexican income, and MoXi lends to US citizens and green-card holders with a 720 FICO and 35% down. Our guide to getting a mortgage in Mexico as an American covers eligibility route by route.

Why peso mortgage rates are higher

It starts with the central banks. Banco de México's target rate is 6.50%, held on September 24, 2026 after two quarter-point cuts in the spring. The Fed's target range is 3.75%–4.00%, after a quarter-point hike on September 16. That's a gap of 2.5 to 2.75 points before any lender adds a margin.

The 28-day TIIE, the interbank rate Banxico publishes every business day, was 6.7659% on October 19. A 20-year fixed peso loan at 11.20% sits about 4.4 points above it and 4.7 points above the policy rate. In the US, the 30-year average sits 3.4 points above the top of the Fed's range. Of the 3.8-point gap between 11.20% and 7.40%, about 2.5 points come from the policy rates and about 1.3 from a wider lender spread in Mexico.

Dollar loans on Mexican property run higher for a different reason. MoXi prices at the 3-year US Treasury yield (4.82% on October 16) plus a margin, and its October quotes imply a margin of roughly 5.2 to 7.6 points. That margin is the price of a lender taking Mexican property, often held in a bank trust, as collateral.

The "from" rate vs the rate you'll be quoted

Mexican banks advertise a tasa desde, a "from" rate, usually reserved for large loans, big down payments or existing clients. With 10% down on a MXN 1.8 million home over 20 years, the banks' own simulators gave these rates on October 16, 2026:

• BBVA: 11.20% (advertises from 9.05%)
• Banamex: 10.95% (advertises from 9.05%)
• Banorte: 9.15% (advertises from 8.80%)
• HSBC: 10.30%–10.60% (advertises from 9.65%)

On a MXN 5.99 million loan, the gap between BBVA's 9.05% and 11.20% is MXN 8,557 a month, about $464 at today's exchange rate. Plan with the quoted rate, not the headline.

CAT: the number to compare

Mexican lenders must disclose the CAT (costo anual total), an all-in annual cost that adds fees and insurance to the interest rate. It plays the role of the APR in the US. Most banks publish a weighted-average CAT on loans already made, usually at 80% financing: BBVA's was 13.3% for its standard fixed mortgage and 13.2% for Tu Opción México. For a 10%-down, 20-year scenario, CONDUSEF's public simulator showed CATs from 12.6% to 16.2%. Monthly payments also carry administration fees and life and property insurance that the rate alone doesn't show.

What moves the rate you're quoted

Within each option, a few inputs decide where you land:

• Down payment. HSBC publishes rates from 9.65% with 30% or more down (as low as 9.20%) and from 10.30% below that. BBVA's table drops from 11.20% to 10.10% on loans from MXN 3.5 million with 30% down. MoXi's quote on a $500,000 home fell to 10.165%–10.665% with 50% down.
• Credit score. At MoXi, the same 30-year loan with 35% down priced at 11.015%–11.515% with a FICO of 780 or more, and at 11.915%–12.415% with 720–739.
• Term. MoXi adds about 0.35 points for 30 years instead of 25. Mexican banks stop at 20 years.
• Payment history. HSBC lowers its rate by 0.15 points a year from the third year if you pay on time.

Currency risk: the cost rate tables leave out

A peso loan has a fixed payment in pesos. If you earn dollars, what you pay each month moves with the exchange rate. Over the last five years, Banxico's FIX rate ranged from 21.8185 pesos per dollar (November 26, 2021) to 16.3357 (April 8, 2024).

A fixed MXN 50,000 payment cost:

• $2,292 at 21.82
• $2,714 at 18.43, the FIX on October 19, 2026
• $3,061 at 16.34

That's a 34% swing on the same payment, and it works against the dollar earner when the peso strengthens. A dollar loan avoids it, and so does earning pesos if you plan to live in Mexico on Mexican income. For moving the money itself, see how to pay for property in Mexico from the US.

Worked example: a $500,000 home with 35% down

Take a $500,000 home, $175,000 down and a $325,000 loan, or MXN 5.99 million at 18.4253. Payments below are principal and interest only, computed with the standard amortization formula at each option's typical rate and usual term.

What the numbers say:

• US-side borrowing costs less per month, and your US home is the collateral. The refi payment looks low because it stretches over 30 years, and it also reprices your existing mortgage, which can cost more than the Mexican purchase itself. We run that math in using home equity to buy property in Mexico.
• The dollar loan costs about $575 a month more than the HELOC, fixed for 25 years, and keeps your US home out of the deal. Over 20 years, the same rate would mean $3,333 a month.
• A peso loan's dollar cost is a range. The same MXN 62,627 payment would have varied by about $963 a month across the last five years of exchange rates.
• Mexican bank payments come in higher in practice once insurance and monthly fees are added.

Our mortgage calculator uses the same October 2026 rates and lets you change the price, down payment and term.

At BB Residential in Huatulco, the eight residences are listed in dollars, from USD $340,000 to $568,251, so a HELOC or a dollar loan carries no exchange-rate risk on the purchase. Tell us the unit you're looking at and we'll run these routes on its actual price.

This guide is general information, not legal, tax or financial advice. Confirm your case with your lender, a Mexican notary and a tax advisor.