What is a Down Payment?
A down payment is the amount of money you pay upfront toward the purchase of your property in Mexico. Your lender deducts the down payment from the purchase price. Your mortgage covers the rest.
The size of your down payment affects:
How much you borrow: A larger down payment means a smaller mortgage
Your monthly payments: Less debt means lower monthly payments
Total interest paid: Smaller mortgages accrue less interest over time
Your equity position: More down payment means more ownership from day one
SoBankable's Down Payment Requirement: 30%
At SoBankable, we require a 30% down payment on all property purchases in Mexico, whether you're buying a primary residence, vacation home, or investment property.
This means we finance up to 70% of the purchase price (our maximum loan-to-value ratio).
Example: Calculating Your Down Payment
For a $500,000 CAD property:
Down payment (30%): $150,000 CAD
SoBankable mortgage: $350,000 CAD
Your equity in the property: $150,000 CAD
Where Can Your Down Payment Come From?
Your down payment must come from verifiable, non-borrowed sources.
Acceptable Sources:
Acceptable Down Payment Sources |
|---|
Cash savings in bank accounts |
Proceeds from the sale of another property (already closed) |
Verifiable assets in investment accounts (stocks, bonds, mutual funds, etc.) |
Gifts from immediate family members (with proper documentation) |
Not Acceptable:
Unacceptable Down Payment Sources |
|---|
Borrowed funds from any source (credit cards, personal loans, lines of credit) |
Home equity lines of credit (HELOCs) from your Canadian or American property |
Unverified or unreported income |
Funds you cannot document with bank statements or asset reports |
Why we exclude borrowed funds: SoBankable's underwriting evaluates your true financial capacity, not leveraged debt. Using borrowed money for your down payment increases your overall debt burden and creates additional risk.
Gifted Down Payments
SoBankable accepts gifted down payments from immediate family members (parents, siblings, adult children) with proper documentation. Learn more about how we handle gifted funds here
Ready to Start Planning?
SoBankable's pre-qualification process gives you clarity before you visit Mexico. We can evaluate your down payment capacity and borrowing power entirely remotely—from Canada, the US, or anywhere in the world.