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What are the best mortgage instruments?

“It is important to pay attention to the initial outlay as it is the one that considers commission expenses, appraisals, among others.”

November 16, 2020 3 min read

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

Opinions expressed by Entrepreneur contributors are their own.

According to Leonardo González, Real Estate analyst at Propiedades.com, it is important to pay attention to the initial outlay since it is the one that considers commission expenses, appraisals, among others.

Acquiring financing to buy a house is something that you should review calmly. Before making the decision, it is advisable to know the options offered by the market. Thus, it will be easy for you to identify which are the best mortgage instruments.

The real estate portal Propiedades.com carried out an analysis based on the Condusef Mortgage Credit Simulator. For this exercise, 17 mortgage instruments were evaluated with data registered as of August 2020.

In this example, it proposes that if you want a 15-year loan to buy a house with a value of 1.6 million pesos and give a down payment of 160,000 pesos, the HSBC Low Payment and Fixed Payment loans are the ones that best suit your profile.

The best mortgage instruments

Image: Depositphotos.com

Taking this into account, HSBC Fixed Payments is the instrument with the best conditions. Here are its characteristics:

Initial Outlay: $ 277,742 Monthly payment: $ 16,599 Income to check: $ 27,665 Interest rate: 9.65 percent CAT: 11.80 percent

Under this scheme, the total loan payment is approximately 2,498,528 pesos.

Meanwhile, HSBC Pagos Bajos has the following qualities:

Initial Outlay: $ 277,742 Monthly payment: $ 15,275 Income to check: $ 25,458 Interest rate: 9.65 percent CAT: 11.90 percent

Another advantage is that if you have access to products such as COFINAVIT, Apoyo Infonavit, Alia2 Plus and Respalda2 you can add your benefits with these HSBC instruments.

More options

Banamex and Banorte Fuerte are other instruments that also fit your profile. As long as you contract a 15-year mortgage to buy a house for 1.6 million pesos and give a down payment of 160,000 pesos.

With both, the initial outlay goes from 266,600 to 356,718 pesos and the monthly payment from 15,924 to 17,626 pesos.

The amount of income you need to verify is between 35,253 and 45,497 pesos. Regarding the interest rate, with Banamex it is 9.3 percent and with Banorte Fuerte 10.5 percent.

The CAT in the first institution is 11.20 percent and in the second, 13.40 percent. Under these schemes, with both instruments, the total loan payment is approximately 2,498,513 and 2,778,642 pesos.

What you must remember before hiring

According to Leonardo González, Real Estate analyst at Propiedades.com, it is important to pay attention to the initial outlay since it is the one that considers commission expenses, appraisals, among others.

For the expert, regardless of the institution with which you are going to make the deal, prior to contracting a loan you must:

Sort your personal finances Analyze the Total Annual Cost (CAT) Look at the interest rate

Remember that you must have documentation at hand and current. Thus, the processing of a mortgage loan is expedited.