Mortgage Types Compared — Mexico 2026

Choosing the Right Mortgage in Mexico

Selecting the right mortgage type is one of the most important financial decisions in the buying process. The wrong choice can cost you tens of thousands over the life of the loan. This guide explains every mortgage type available in Mexico and helps you choose.

Types of Mortgages Available

Mexico has distinct financing channels. Crédito hipotecario bancario (bank mortgage) is typically fixed rate for the full term at 8-13% — higher than developed markets but providing certainty. Crédito INFONAVIT uses accumulated employer contributions at subsidised rates — significantly cheaper than bank rates. Cofinavit combines INFONAVIT credit with a bank loan to finance higher-value properties. FOVISSSTE provides similar benefits for government employees. Most bank mortgages use a reducing-balance calculation, but beware of flat-rate products from consumer finance companies which cost much more

Head-to-Head Comparison

INFONAVIT is always the cheapest option if you qualify — rates are subsidised and the credit comes from your accumulated employer contributions. Bank mortgages are more expensive (8-13%) but available for higher-value properties. Cofinavit cleverly combines both. Always compare using CAT (Costo Anual Total) which includes all costs, not just the interest rate. Avoid flat-rate products at all costs — they calculate interest on the original balance throughout, making them far more expensive

Use our mortgage calculator to model different rate scenarios and see how each product type affects your monthly repayments and total interest paid.

Which Type Is Right for You?

Your ideal mortgage type depends on your risk tolerance, financial stability, and market outlook.

Choose fixed rate if you value payment certainty, are on a tight budget with little room for payment increases, or believe rates will rise. Choose variable rate if you can absorb payment increases, want the lowest possible initial cost, or believe rates will stay stable or fall.

Consider your loan term carefully. Shorter terms mean higher monthly payments but dramatically lower total interest. Our mortgage guide provides a detailed analysis of how term length affects total cost.

Expert Tips for Mexico

Always check INFONAVIT first — the subsidised rate saves you hundreds of thousands of pesos over the life of the loan. Compare using CAT (Costo Anual Total), not just the tasa de interés. Use the CONDUSEF comparison tool. Pay extra whenever possible — at Mexican rates of 8-13%, prepayments generate enormous savings

Refinancing Between Types

If you chose the wrong type, or if market conditions change, refinancing is always an option. Read our refinancing guide for a step-by-step walkthrough of switching products or lenders.

Next Steps

Use our mortgage calculator to compare scenarios, read our first home buyer guide if you are a new buyer, or browse Mexico FAQs for quick answers.