When you say mortgage credit, you automatically think of buying a home, a situation that is correct but that limits its use because it has a more diverse application.

Pablo Sadek González, member of the Mortgage Credit Committee of the Association of Banks of Mexico (ABM) pointed out in the program "Main uses of mortgage loans", that more than 75% of operations of this type correspond to the purchase of housing , acquisition, but that can also be used to provide liquidity, remodel and improve, the acquisition of land and / or construction, in addition to the mortgage transfer.

The acquisition allows the purchase of a new or used home, the financing percentage reaches up to 90% of the value of the home. The current interest rate has been one of the lowest ever seen.

Real interest is tax deductible and it should be considered that notary fees represent 7% to 10% of the value of the home. There are two banking programs with Infonavit: Cofinavit and Apoyo Infonavit.

The first Cofinavit is granted by the bank and this institute is granted to active beneficiaries, the balance of the housing subaccount is used as a down payment, noting that the sum of the credits of the two parties plus the housing sub account balance, does not can exceed the value of the home; In addition, the employer contributions that are given during the term of the loan go as advance payments of the loan, first from Infonavit and then from the bank.

Check here: Location and mobility consider Infonavit for granting credits

In Apoyo Infonavit, the credit is 100% from the bank, the housing subaccount is used as a guarantee of payment in case of unemployment, it is granted to active beneficiaries, the employer contributions that are given during the term of the credit go as payments advance loans, first from Infonavit and then from banks.

The bank's credit with FOVISSSTE, FOVISSSTE for everyone, the credit is 100% by the bank, the beneficiary is not subject to scoring, the housing subaccount can be used as a down payment, it is granted to active beneficiaries, the contributions employers that occur during the term of the loan go as advance payments of the bank loan.

The use of a loan to obtain liquidity is carried out by leaving the home as collateral in exchange for money with a free destination, without verifying or explaining the use of the money, its rates are lower and higher amounts with respect to a consumer loan and they have lower deed expenses.

It was detailed that the interests generate VAT, the real interests are not tax deductible and that their rates are higher than the acquisition credits.

Of interest: Historic placement of mortgage loans by Scotiabank

When the credit is used for remodeling or improvements, it is also left to the home as collateral, the money must be used to improve, expand or remodel the home, its financed amount is less than the acquisition.

Under this concept, around 40% of the value of the home is lent, its rates are lower and higher amounts with respect to a consumer or payroll loan, the real interests are tax deductible and there are lower registration expenses

In case of requesting a credit to acquire land or build, the real interest is tax deductible. 

Under this modality, the financed amount is less than the acquisition and that the construction loan is granted in parts, as the work progresses, with the bank conducting supervisions.

Finally another use of credit is to transfer a mortgage from one bank to another. This is done to have better conditions, normally you want to pay less, the real interests are tax deductible and the deed expenses are lower, around 4%.

Another point to consider is that some credits have a penalty for early settlement, in addition to asking the bank for the balance letter to know the amount to be settled.

In Solili you can check the availability to buy apartments in Ciudad de México, Guadalajara and Monterrey

 Original note